<PAGE>
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 September 30, 1996
------------------
[ ] 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: 0-14906
JONES CABLE INCOME FUND 1-B, LTD.
- -----------------------------------------------------------------------------
Exact name of registrant as specified in charter
Colorado 84-1010417
- -----------------------------------------------------------------------------
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 (l) has filed all reports required
to be filed by Section l3 or l5(d) of the Securities Exchange Act of l934 during
the preceding l2 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>
JONES CABLE INCOME FUND 1-B, LTD.
---------------------------------
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
------------------------
<TABLE>
<CAPTION>
September 30, December 31,
ASSETS 1996 1995
- ------ ------------- ------------
<S> <C> <C>
CASH $ - $ 54,135
RECEIVABLES:
Trade receivables, less allowance for doubtful receivables
of $17,594 at December 31, 1995 - 247,500
INVESTMENT IN CABLE TELEVISION PROPERTIES:
Property, plant and equipment, at cost - 11,934,307
Less- accumulated depreciation - (5,878,915)
----------- -----------
- 6,055,392
Franchise costs and other intangible assets, net of
accumulated amortization of $3,518,302 at
December 31, 1995 - 1,240,298
Investment in cable television joint venture 1,444,486 2,348,059
----------- -----------
Total investment in cable television properties 1,444,486 9,643,749
DEPOSITS, PREPAID EXPENSES AND DEFERRED CHARGES - 48,919
---------- -----------
Total assets $1,444,486 $ 9,994,303
========== ===========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
2
<PAGE>
JONES CABLE INCOME FUND 1-B, LTD.
---------------------------------
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
------------------------
<TABLE>
<CAPTION>
September 30, December 31,
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) 1996 1995
------------------------------------------- ------------ ------------
<S> <C> <C>
LIABILITIES:
Debt $ - $ 6,866,146
Accrued liabilities 69,626 389,119
Accrued distribution to
limited partners - 250,000
Subscriber prepayments - 38,082
------------ ------------
Total liabilities 69,626 7,543,347
------------ ------------
PARTNERS' CAPITAL (DEFICIT):
General Partner-
Contributed capital 1,000 1,000
Accumulated deficit 98,280 (199,900)
Distributions (110,219) (110,219)
------------ ------------
(10,939) (309,119)
------------ ------------
Limited Partners-
Net contributed capital
(83,884 units outstanding at
September 30, 1996 and December 31, 1995) 34,449,671 34,449,671
Accumulated deficit (9,941,291) (19,671,890)
Distributions (23,122,581) (12,017,706)
------------ ------------
1,385,799 2,760,075
------------ ------------
Total liabilities and partners'
capital (deficit) $ 1,444,486 $ 9,994,303
============ ============
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
3
<PAGE>
JONES CABLE INCOME FUND 1-B, LTD.
---------------------------------
(A Limited Partnership)
UNAUDITED STATEMENTS OF OPERATIONS
----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
---------------------------- --------------------------
1996 1995 1996 1995
--------- ---------- ----------- ---------
<S> <C> <C> <C> <C>
REVENUES $ - $1,260,839 $ 862,911 $ 3,672,304
COSTS AND EXPENSES:
Operating expenses - 743,325 730,908 2,285,461
Management fees and allocated
overhead from General Partner - 150,797 106,575 446,380
Depreciation and amortization - 331,527 227,488 1,001,334
--------- ---------- ----------- ------------
OPERATING INCOME (LOSS) - 35,190 (202,060) (60,871)
--------- ---------- ----------- ------------
OTHER INCOME (EXPENSE):
Interest expense - (140,172) (123,888) (393,684)
Gain on sale of cable television system - - 11,122,663 -
Other, net 5,820 313 135,637 108
--------- ---------- ----------- -----------
Total other income (expense), net 5,820 (139,859) 11,134,412 (393,576)
--------- ---------- ----------- -----------
INCOME (LOSS) BEFORE EQUITY
IN NET LOSS OF CABLE
TELEVISION JOINT VENTURE 5,820 (104,669) 10,932,352 (454,447)
EQUITY IN NET LOSS OF
CABLE TELEVISION JOINT
VENTURE (196,481) (357,153) (903,573) (1,399,126)
--------- ---------- ----------- -----------
NET INCOME (LOSS) $(190,661) $ (461,822) $10,028,779 $(1,853,573)
========= ========== =========== ===========
ALLOCATION OF NET INCOME (LOSS):
General Partner $ (1,907) $ (4,618) $ 298,180 $ (18,536)
========= ========== =========== ===========
Limited Partners $(188,754) $ (457,204) $ 9,730,599 $(1,835,037)
========= ========== =========== ===========
NET INCOME (LOSS) PER LIMITED
PARTNERSHIP UNIT $ (2.25) $ (5.44) $ 116.00 $ (21.87)
========= ========== =========== ===========
WEIGHTED AVERAGE NUMBER
OF LIMITED PARTNERSHIP
UNITS OUTSTANDING 83,884 83,884 83,884 83,884
========= ========== =========== ===========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
4
<PAGE>
JONES CABLE INCOME FUND 1-B, LTD.
---------------------------------
(A Limited Partnership)
UNAUDITED STATEMENTS OF CASH FLOWS
----------------------------------
<TABLE>
<CAPTION>
For the Nine Months Ended
September 30,
--------------------------
1996 1995
----------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 10,028,779 $(1,853,573)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 227,488 1,001,334
Equity in net loss of cable television
joint venture 903,573 1,399,126
Gain on sale of cable television system (11,122,663) -
Decrease (increase) in trade receivables 247,500 (39,003)
Decrease (increase) in deposits, prepaid expenses
and deferred charges 48,919 (55,140)
Increase (decrease) in accounts payable,
accrued liabilities and subscriber prepayments (357,575) 10,093
------------ -----------
Net cash provided by (used in) operating activities (23,979) 462,837
------------ -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (156,802) (949,985)
Proceeds from the sale of cable television system 18,347,667 -
------------ -----------
Net cash provided by (used in) investing activities 18,190,865 (949,985)
------------ -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings 18,135 6,652,072
Repayment of debt (6,884,281) (3,522,919)
Distributions to limited partners (11,104,875) (750,000)
Increase (decrease) in accrued distributions to
limited partners (250,000) 250,000
Decrease in advances from General Partner - (2,160,994)
------------ -----------
Net cash provided by (used in) financing activities (18,221,021) 468,159
------------ -----------
Decrease in cash (54,135) (18,989)
Cash, beginning of period 54,135 116,839
------------ -----------
Cash, end of period $ - $ 97,850
============ ===========
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ 220,221 $ 339,705
============ ===========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
5
<PAGE>
JONES CABLE INCOME FUND 1-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 Jones Cable Income Fund 1-B, Ltd. (the
"Partnership") at September 30, 1996 and December 31, 1995, its Statements of
Operations for the three and nine month periods ended September 30, 1996 and
1995 and its Statements of Cash Flows for the nine month periods ended September
30, 1996 and 1995. Results of operations for these periods are not necessarily
indicative of results to be expected for the full year.
The Partnership previously owned and operated the cable television system
serving the areas in and around Orangeburg, South Carolina (the "Orangeburg
System"). As discussed below, the Partnership sold the Orangeburg System on
February 28, 1996. In addition, the Partnership owns a 40 percent interest in
Jones Cable Income Fund 1-B/C Venture (the "Venture"). The Venture owns and
operates the cable television systems serving the areas in and around Brighton
and Broomfield, Colorado (the "Colorado Systems"); Lake County, California;
Myrtle Creek, Oregon; South Sioux City, Nebraska; and Three Rivers and
Watervliet, Michigan.
(2) Jones Intercable, Inc., a publicly held Colorado corporation (the "General
Partner"), 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 nine month periods ended September 30, 1996 (exclusive of the Partnership's
40 percent interest in the Venture) were $-0- and $43,146, compared to $63,042
and $183,615, respectively, for the similar 1995 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 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 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. Amounts charged
the Partnership by the General Partner for allocated overhead and administrative
expenses for the three and nine month periods ending September 30, 1996
(exclusive of the Partnership's 40 percent interest in the Venture) were $-0-and
$63,429, compared to $87,755 and $262,765, respectively, for the similar 1995
periods.
See Note 5 for disclosure of the management fees and allocated overhead and
administrative expenses paid by the Venture.
(3) On February 28, 1996, the Partnership sold the Orangeburg System to a
subsidiary of the General Partner for $18,347,667, subject to working capital
adjustments of $376,646, which were deducted from the sale proceeds. The sales
price represented the average of three separate, independent appraisals of the
Orangeburg System. The Partnership used the net sales proceeds to pay all of its
indebtedness, which totaled approximately $6,866,000, and the Partnership
distributed the remaining net sales proceeds, which totaled approximately
$11,105,000, to its limited partners pursuant to the terms of the Partnership's
partnership agreement in April 1996. This distribution represented a return to
each limited partner of approximately $265 for each $1,000 invested in the
Partnership. This amount was in addition to the $328 per $1,000 invested in the
Partnership already returned to the limited partners through prior operating
cash flow distributions. The Partnership will retain its interest in the
Venture.
(4) On September 13, 1996, the Venture entered into an asset purchase agreement
providing for the sale of the Colorado Systems by the Venture to an unaffiliated
party for a sales price of $35,000,000, subject to normal closing adjustments.
The Jones Group, Ltd., a subsidiary of the General Partner, will receive a
brokerage fee of 2.5 percent of the sales price for acting as a broker in this
transaction. A condition to the closing of this
6
<PAGE>
transaction is that the sale of the Colorado Systems occur on or prior to
January 27, 1997. There can be no assurance that all closing conditions will be
met by that date because closing of the sale is subject to the receipt of the
consent of the governmental franchising authorities and other regulatory
authorities having jurisdiction. Because the sale of the Colorado Systems does
not represent the sale of all or substantially all of the assets of the Venture,
no vote of the limited partners of the Partnership is required to approve this
sale. Following this sale, the Venture will continue to own and operate its
systems in California, Oregon, Nebraska and Michigan.
(5) Financial information regarding the Venture is presented below.
UNAUDITED BALANCE SHEETS
------------------------
<TABLE>
<CAPTION>
ASSETS September 30, 1996 December 31, 1995
------ ------------------ -----------------
<S> <C> <C>
Cash and accounts receivable $ 832,253 $ 1,405,468
Investment in cable television properties 46,649,580 49,052,982
Other assets 382,060 385,587
------------ ------------
Total assets $ 47,863,893 $ 50,844,037
============ ============
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
Debt $ 43,060,394 $ 43,104,090
Payables and accrued liabilities 1,160,495 1,824,946
Partners' contributed capital 39,504,008 39,504,008
Accumulated deficit (35,861,004) (33,589,007)
------------ ------------
Total liabilities and partners' capital $ 47,863,893 $ 50,844,037
============ ============
</TABLE>
UNAUDITED STATEMENTS OF OPERATIONS
----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
--------------------------- --------------------------
1996 1995 1996 1995
------------- ----------- ---------- ---------
<S> <C> <C> <C> <C>
Revenues $6,200,872 $5,823,421 $18,318,617 $17,027,038
Operating expenses 3,409,393 3,080,335 10,166,199 9,340,225
Management fees and allocated overhead
from Jones Intercable, Inc. 671,382 691,096 2,084,393 2,058,394
Depreciation and amortization 1,830,250 2,306,633 6,013,447 6,749,845
---------- ---------- ----------- -----------
Operating income (loss) 289,847 (254,643) 54,578 (1,121,426)
Interest expense (771,773) (783,925) (2,331,270) (2,559,041)
Other, net (12,119) 140,522 4,695 162,424
---------- ---------- ----------- -----------
Net loss $ (494,045) $ (898,046) $(2,271,997) $(3,518,043)
========== ========== =========== ===========
</TABLE>
Management fees paid to the General Partner by the Venture totaled $310,044
and $915,931, respectively, for the three and nine months ended September 30,
1996 compared to $291,171 and $851,352, respectively, for the similar 1995
periods. Reimbursements for overhead and administrative expenses totaled
$361,338 and $1,168,462, respectively, for the
7
<PAGE>
three and nine months ended September 30, 1996 compared to $399,925 and
$1,207,042, respectively, for the similar 1995 periods. Management fees paid by
the Venture and attributable to the Partnership totaled $123,304 and $364,265,
respectively, for the three and nine months ended September 30, 1996 compared to
$115,799 and $338,583, respectively, for the similar 1995 periods.
Reimbursements for overhead and administrative expenses attributable to the
Partnership totaled $143,704 and $464,697, respectively, for the three and nine
months ended September 30, 1996 compared to $151,098 and $478,082, respectively,
for the similar 1995 periods.
(6) Certain prior year amounts have been reclassified to conform to the 1996
presentation.
8
<PAGE>
JONES CABLE INCOME FUND 1-B, LTD.
---------------------------------
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
FINANCIAL CONDITION
- -------------------
It is the General Partner's publicly announced policy that it intends to
liquidate its managed limited partnerships, including the Partnership, as
opportunities for sales of partnership cable television systems arise in the
marketplace over the next several years. In accordance with the General
Partner's policy, the Partnership sold the Orangeburg System in February 1996
and the Venture has entered into an agreement to sell its Colorado Systems in
January 1997. No specific dates or terms have yet been set for the sale of the
Venture's remaining systems. There can be no assurance as to the timing or terms
of any sale.
The Partnership-
On February 28, 1996, the Partnership sold the Orangeburg System to a
subsidiary of the General Partner for $18,347,667, subject to working capital
adjustments of $376,646, which were deducted from the sale proceeds. The sales
price represented the average of three separate, independent appraisals of the
Orangeburg System. The Partnership used the net sales proceeds to pay all of its
indebtedness, which totaled approximately $6,866,000, and the Partnership
distributed the remaining net sales proceeds, which totaled approximately
$11,105,000, to its limited partners pursuant to the terms of the Partnership's
partnership agreement in April 1996. This distribution represented a return to
each limited partner of approximately $265 for each $1,000 invested in the
Partnership. This amount was in addition to the $328 per $1,000 invested in the
Partnership already returned to the limited partners through prior operating
cash flow distributions. The Partnership will retain its interest in the
Venture.
The Venture-
The Partnership continues to own a 40 percent interest in Jones Cable
Income Fund 1-B/C Venture (the "Venture"). The investment is accounted for
under the equity method. When compared to the December 31, 1995 balance, this
investment has decreased by $903,573. This decrease represents the
Partnership's proportionate share of losses during the first nine months of
1996. The Venture's losses, which are principally the result of depreciation
and amortization charges, are expected to continue.
On September 13, 1996, the Venture entered into an asset purchase agreement
providing for the sale of the Colorado Systems by the Venture to an unaffiliated
party for a sales price of $35,000,000, subject to normal closing adjustments.
The Jones Group, Ltd., a subsidiary of the General Partner, will receive a
brokerage fee of 2.5 percent of the sales price for acting as a broker in this
transaction. A condition to the closing of this transaction is that the sale of
the Colorado Systems occur on or prior to January 27, 1997. There can be no
assurance that all closing conditions will be met by that date because closing
of the sale is subject to the receipt of the consent of the governmental
franchising authorities and other regulatory authorities having jurisdiction.
Because the sale of the Colorado Systems does not represent the sale of all or
substantially all of the assets of the Venture, no vote of the limited partners
of the Partnership is required to approve this sale. Following this sale, the
Venture will continue to own and operate its systems in California, Oregon,
Nebraska and Michigan.
For the nine months ended September 30, 1996, the Venture generated net
cash from operating activities totaling $2,853,940, which is available to fund
capital expenditures and non-operating costs. During the first nine months of
1996, capital improvements within the Venture's systems totaled approximately
$3,471,000. Approximately 40 percent of these expenditures was for service drops
to homes and approximately 35 percent was for the rebuild and upgrade of the
Venture's Systems. The remainder of these expenditures related to various
enhancements in all of the Venture's systems. Funding for these expenditures was
provided by cash generated from operations and borrowings under the Venture's
credit facility. Anticipated capital expenditures for the remainder of 1996 are
approximately $1,122,000. Service drops to homes are expected to account for
approximately 45 percent of the anticipated expenditures and system upgrades and
rebuilds are expected to account for approximately 26 percent of the
expenditures. The remainder of the expenditures will be for various enhancements
in the Venture's systems. These capital expenditures are necessary to maintain
the value of the Venture's systems. Funding for these expenditures is expected
to be provided by cash generated from operations and available borrowings from
the Venture's credit facility.
9
<PAGE>
At September 30, 1996, the Venture's $45,000,000 credit facility had
$42,700,000 outstanding, leaving $2,300,000 of available borrowings. The
revolving credit facility matures on June 30, 1997, at which time the General
Partner will attempt to renegotiate the credit facility to extend the revolving
credit period. Interest on outstanding principal is calculated at the Venture's
option of the Prime Rate plus 1/2 percent, or London Interbank Offered Rate plus
1-1/2 percent. The effective interest rates on amounts outstanding as of
September 30, 1996 and 1995 were 7.06 percent and 7.38 percent, respectively.
One of the primary objectives of the Venture is to provide quarterly cash
distributions to the Venture's partners, primarily from cash generated through
operating activities of the Venture. The Venture's partners in turn seek to
provide quarterly cash distributions to their limited partners. The Venture's
credit facility has a maximum amount available of $45,000,000, of which
$42,700,000 was outstanding on September 30, 1996. This limits the amount of
borrowing available to the Venture to fund capital expenditures; therefore, the
Venture used cash generated from operations to fund capital expenditures and did
not declare any distributions during the first, second and third quarters of
1996. Due to these borrowing limitations, the Venture will need to use cash
generated from operations to fund capital expenditures and the Venture does not
anticipate the resumption of distributions to the Venture's partners in the near
term.
The General Partner believes that the Venture has sufficient sources of
capital available from cash generated from operations and from borrowings
available under its credit facility to meet its presently anticipated needs so
long as the Venture does not resume cash distributions to the Venture partners.
RESULTS OF OPERATIONS
- ---------------------
On February 28, 1996, the Partnership sold the Orangeburg System, which was
the Partnership's only directly held system; therefore, meaningful comparisons
of revenues, operating expenses, management fees and allocated overhead from the
General Partner and depreciation and amortization expense cannot be made. The
Partnership continues to own a 40 percent interest in the Venture.
Revenues of the Venture increased $377,451, or approximately 6 percent, to
$6,200,872 for the three months ended September 30, 1996 from $5,823,421 for the
comparable 1995 period. Revenues increased $1,291,579, or approximately 8
percent, to $18,318,617 for the nine months ended September 30, 1996 from
$17,027,038 for the comparable 1995 period. These increases in revenues were
primarily due to basic service rate increases and increases in the number of
basic subscribers. Basic service rate increases accounted for approximately 62
percent and 55 percent, respectively, of the increase in revenues for the three
and nine month periods ended September 30, 1996. An increase in the number of
basic subscribers accounted for approximately 38 percent and 32 percent,
respectively, of the increase in revenues for the three and nine month periods
ended September 30, 1996. The number of basic subscribers increased by 2,179
subscribers, or approximately 3 percent, to 66,309 subscribers at September 30,
1996 from 64,130 subscribers at September 30, 1995. No other single factor
significantly affected the increases in revenues.
Operating expenses consist primarily of costs associated with the
administration of the Venture'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 $329,058, or approximately 11 percent, to
$3,409,393 for the three months ended September 30, 1996 from $3,080,335 for the
comparable 1995 period. Operating expenses increased $825,974, or approximately
9 percent, to $10,166,199 for the nine months ended September 30, 1996 from
$9,340,225 for the comparable 1995 period. Operating expenses represented 55
percent and 56 percent, respectively, of revenues for the three and nine month
periods ended September 30, 1996 compared to 53 percent and 55 percent,
respectively, for the similar periods in 1995. These increases in operating
expenses were primarily due to increases in programming costs. No other
individual factor significantly affected the increases in operating expenses for
the periods discussed.
Management fees and allocated overhead from the General Partner decreased
$19,714, or approximately 3 percent, to $671,382 for the three months ended
September 30, 1996 from $691,096 for the comparable 1995 period. This decrease
was due to a decrease in allocated overhead from the General Partner.
Management fees and allocated overhead from the General Partner increased
$25,999, or approximately 1 percent, to $2,084,393 for the nine months ended
September 30, 1996 from $2,058,394 for the comparable 1995 period. This
increase was due to an increase in management fees due to the increase in
revenues, upon which such management fees are based.
10
<PAGE>
Depreciation and amortization expense decreased $476,383, or approximately
21 percent, to $1,830,250 for the three months ended September 30, 1996 from
$2,306,633 for the comparable 1995 period. Depreciation and amortization expense
decreased $736,398, or approximately 11 percent, to $6,013,447 for the nine
months ended September 30, 1996 from $6,749,845 for the comparable 1995 period.
These decreases were due to the decrease in the Venture's depreciable asset
base.
The Venture recognized operating income of $289,847 for the three months
ended September 30, 1996 compared to an operating loss of $254,643 for the
comparable period in 1995. This change was due to the increase in revenues and
decreases in management fees and allocated overhead from the General Partner and
depreciation and amortization expense exceeding the increase in operating
expenses. The Venture recognized operating income of $54,578 for the nine
months ended September 30, 1996 compared to an operating loss of $1,121,426 for
the comparable period in 1995. This change was due to the increase in revenues
and decrease in depreciation and amortization expense exceeding the increases in
operating expenses and management fees and allocated overhead from the General
Partner.
The cable television industry generally measures the financial performance
of a cable television system in terms of cash flow or operating income before
depreciation and amortization. The value of a cable television system is often
determined using multiples of cash flow. This measure is not intended to be a
substitute or improvement upon the items disclosed on the financial statements,
rather it is included because it is an industry standard. Operating income
before depreciation and amortization increased $68,107, or approximately 3
percent, to $2,120,097 for the three months ended September 30, 1996 from
$2,051,990 for the comparable 1995 period. This increase was due to the increase
in revenues and decrease in management fees and allocated overhead from the
General Partner exceeding the increase in operating expenses. For the nine month
period ended September 30, 1996, operating income before depreciation and
amortization increased $439,606, or approximately 8 percent, to $6,068,025 in
1996 from $5,628,419 for the comparable period in 1995. This increase was due to
the increase in revenues exceeding the increases in operating expenses and
management fees and allocated overhead from the General Partner.
Interest expense decreased $12,152, or approximately 2 percent, to $771,773
for the three months ended September 30, 1996 compared to $783,925 for the
comparable 1995 period. Interest expense decreased $227,771, or approximately 9
percent, to $2,331,270 for the nine months ended September 30, 1996 from
$2,559,041 for the comparable 1995 period. These decreases were due to lower
effective interest rates on interest bearing obligations.
Net loss decreased $243,329, or approximately 45 percent for the three
month period ended September 30, 1996 to $297,564 from $540,893 for the
comparable 1995 period. For the nine month period ended September 30, 1996, net
loss decreased $750,493, or approximately 35 percent, to $1,368,424 from
$2,118,917 for the comparable 1995 period. These decreases were due to the
factors discussed above.
11
<PAGE>
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
Report on Form 8-K dated September 13, 1996, reporting that Jones
Cable Income Fund 1-B/C Venture, a Colorado general partnership (the
"Venture"), entered into an asset purchase agreement providing for the
sale by the Venture of the cable television systems serving
subscribers in the cities of Broomfield and Brighton, Colorado, the
town of Lochbuie, Colorado and Adams, Boulder and Weld Counties,
Colorado (the "Systems") for a sales price of $35,000,000, subject to
customary closing adjustments.
12
<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.
JONES CABLE INCOME FUND 1-B, LTD.
BY: JONES INTERCABLE, INC.
General Partner
By: /s/ Kevin P. Coyle
------------------------------------
Kevin P. Coyle
Group Vice President/Finance
(Principal Financial Officer)
Dated: November 14, 1996
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,444,486
<CURRENT-LIABILITIES> 69,626
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,374,860
<TOTAL-LIABILITY-AND-EQUITY> 1,444,486
<SALES> 0
<TOTAL-REVENUES> 862,911
<CGS> 0
<TOTAL-COSTS> 1,064,971
<OTHER-EXPENSES> 11,134,412
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 123,888
<INCOME-PRETAX> 10,028,779
<INCOME-TAX> 0
<INCOME-CONTINUING> 10,028,779
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10,028,779
<EPS-PRIMARY> 116.
<EPS-DILUTED> 116.
</TABLE>
