<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 September 30, 1995
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 0-15378
CABLE TV FUND 14-A, LTD.
- --------------------------------------------------------------------------------
Exact name of registrant as specified in charter
Colorado #84-1024657
- --------------------------------------------------------------------------------
State of organization I.R.S. employer I.D.#
9697 East Mineral Avenue, P.O. Box 3309, Englewood, Colorado 80155-3309
------------------------------------------------------------------------
Address of principal executive office
(303) 792-3111
-----------------------------
Registrant's telephone number
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
----- -----
<PAGE> 2
CABLE TV FUND 14-A, LTD.
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, December 31,
ASSETS 1995 1994
------ ------------- ------------
<S> <C> <C>
CASH $ 712,241 $ 426,979
TRADE RECEIVABLES, less allowance for
doubtful receivables of $98,743 and $74,176
at September 30, 1995 and December 31, 1994,
respectively 547,191 1,070,581
INVESTMENT IN CABLE TELEVISION PROPERTIES:
Property, plant and equipment, at cost 124,757,001 117,434,221
Less- accumulated depreciation (65,100,140) (57,090,363)
------------ ------------
59,656,861 60,343,858
Franchise costs, net of accumulated
amortization of $24,607,238 and $22,417,029
at September 30, 1995 and December 31, 1994,
respectively 9,531,424 11,721,633
Subscriber lists, net of accumulated
amortization of $8,835,665 and $8,390,402
at September 30, 1995 and December 31, 1994,
respectively 820,685 1,265,948
Costs in excess of interests in net assets
purchased, net of accumulated amortization
of $863,693 and $776,420 at September 30, 1995
and December 31, 1994, respectively 5,929,565 6,016,838
Investment in cable television joint venture 5,055,581 5,883,075
------------ ------------
Total investment in cable
television properties 80,994,116 85,231,352
DEPOSITS, PREPAID EXPENSES AND DEFERRED CHARGES 789,258 827,434
------------ ------------
Total assets $ 83,042,806 $ 87,556,346
============ ============
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
2
<PAGE> 3
CABLE TV FUND 14-A, LTD.
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, December 31,
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) 1995 1994
-------------------------------------------- ------------- ------------
<S> <C> <C>
LIABILITIES:
Debt $ 80,530,748 $ 77,425,047
Accounts payable -
Trade 122,209 165,894
General Partner 59,844 706,579
Accrued liabilities 1,877,597 2,238,657
Subscriber prepayments 137,654 104,845
------------ ------------
Total liabilities 82,728,052 80,641,022
------------ ------------
PARTNERS' CAPITAL (DEFICIT):
General Partner-
Contributed capital 1,000 1,000
Accumulated deficit (684,084) (618,078)
------------ ------------
(683,084) (617,078)
------------ ------------
Limited Partners-
Net contributed capital (160,000 units
outstanding at September 30, 1995 and
December 31, 1994) 68,722,000 68,722,000
Accumulated deficit (67,724,162) (61,189,598)
------------ ------------
997,838 7,532,402
------------ ------------
Total liabilities and
partners' capital (deficit) $ 83,042,806 $ 87,556,346
============ ============
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
3
<PAGE> 4
CABLE TV FUND 14-A, LTD.
(A Limited Partnership)
UNAUDITED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
------------------------------ ------------------------------
1995 1994 1995 1994
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
REVENUES $11,129,890 $10,200,526 $32,661,689 $29,977,289
COSTS AND EXPENSES:
Operating expenses 6,520,395 5,872,104 19,140,699 17,661,155
Management fees and
allocated overhead
from General Partner 1,317,319 1,220,774 3,925,453 3,718,694
Depreciation and
amortization 3,564,422 3,728,549 10,860,491 11,252,418
----------- ----------- ----------- -----------
OPERATING LOSS (272,246) (620,901) (1,264,954) (2,654,978)
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE):
Interest expense (1,573,688) (1,329,990) (4,512,872) (3,194,200)
Other, net 53,993 (84,353) 4,750 (197,112)
----------- ----------- ----------- -----------
Total other income
(expense), net (1,519,695) (1,414,343) (4,508,122) (3,391,312)
----------- ----------- ----------- -----------
LOSS BEFORE EQUITY IN NET
LOSS OF CABLE TELEVISION
JOINT VENTURE (1,791,941) (2,035,244) (5,773,076) (6,046,290)
EQUITY IN NET LOSS OF CABLE
TELEVISION JOINT VENTURE (285,483) (405,329) (827,494) (1,062,125)
----------- ----------- ----------- -----------
NET LOSS $(2,077,424) $(2,440,573) $(6,600,570) $(7,108,415)
=========== =========== =========== ===========
ALLOCATION OF NET LOSS:
General Partner $ (20,775) $ (24,406) $ (66,006) $ (71,084)
=========== =========== =========== ===========
Limited Partners $(2,056,649) $(2,416,167) $(6,534,564) $(7,037,331)
=========== =========== =========== ===========
NET LOSS PER LIMITED
PARTNERSHIP UNIT $ (12.85) $ (15.10) $ (40.84) $ (43.98)
=========== =========== =========== ===========
WEIGHTED AVERAGE NUMBER OF
LIMITED PARTNERSHIP UNITS
OUTSTANDING 160,000 160,000 160,000 160,000
=========== =========== =========== ===========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
4
<PAGE> 5
CABLE TV FUND 14-A, LTD.
(A Limited Partnership)
UNAUDITED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the Nine Months Ended
September 30,
------------------------------
1995 1994
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(6,600,570) $(7,108,415)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization 10,860,491 11,252,418
Equity in net loss of cable television
joint venture 827,494 1,062,125
Amortization of interest rate protection
contract 12,501 12,501
Decrease in advances from General Partner (646,735) (58,974)
Decrease in trade receivables 523,390 100,480
Increase in deposits, prepaid expenses
and deferred charges (102,294) (695,550)
Decrease in accounts payable, accrued
liabilities and subscriber prepayments (371,936) (744,175)
----------- -----------
Net cash provided by operating activities 4,502,341 3,820,410
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment, net (7,322,780) (5,727,310)
----------- -----------
Net cash used in investing activities (7,322,780) (5,727,310)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings 3,278,728 77,267,313
Repayment of debt (173,027) (75,474,417)
----------- -----------
Net cash provided by financing activities 3,105,701 1,792,896
----------- -----------
Increase (decrease) in cash 285,262 (114,004)
Cash, beginning of period 426,979 476,782
----------- -----------
Cash, end of period $ 712,241 $ 362,778
=========== ===========
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ 4,587,458 $ 3,018,820
=========== ===========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
5
<PAGE> 6
CABLE TV FUND 14-A, 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 14-A, Ltd.
(the "Partnership") at September 30, 1995 and December 31, 1994 and its
Statements of Operations for the three and nine month periods ended September
30, 1995 and 1994, and its Statements of Cash Flows for the nine month periods
ended September 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 systems serving
the areas in and around Turnersville, New Jersey; Buffalo, Minnesota;
Naperville, Illinois; Calvert County, Maryland; and certain communities in
Central Illinois. In addition, the Partnership owns an approximate 27 percent
interest in Cable TV Fund 14-A/B Venture (the "Venture"). The Venture owns and
operates the cable television system serving certain areas in Broward County,
Florida (the "Broward County System").
(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 nine month periods ended September 30, 1995 (excluding
the Partnership's approximate 27 percent interest in the Venture) were $556,494
and $1,633,084, respectively, compared to $510,026 and $1,498,864,
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 benefits paid to corporate personnel, rent, data processing services and
other corporate related 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. Reimbursements made to the General Partner by the Partnership for
allocated overhead and administrative expenses for the three and nine month
periods ended September 30, 1995 (excluding the Partnership's approximate 27
percent interest in the Venture) were $760,825 and $2,292,369, respectively,
compared to $710,748 and $2,219,830, respectively, for the similar 1994
periods.
(3) Certain prior year amounts have been reclassified to conform to the
1995 presentation.
6
<PAGE> 7
(4) Financial information regarding the Venture is presented below.
UNAUDITED BALANCE SHEET
<TABLE>
<CAPTION>
September 30, 1995 December 31, 1994
------------------ -----------------
<S> <C> <C>
ASSETS
------
Cash and accounts receivable $ 1,102,001 $ 856,159
Investment in cable television properties 61,884,533 65,314,914
Other assets 351,786 426,387
------------ ------------
Total assets $ 63,338,320 $ 66,597,460
============ ============
LIABILITIES AND PARTNERS' CAPITAL
----------------------------------
Debt $ 41,086,502 $ 42,271,921
Payables and accrued liabilities 3,241,338 2,261,576
Partners' contributed capital 70,000,000 70,000,000
Accumulated deficit (50,989,520) (47,936,037)
------------ ------------
Total liabilities and
partners' capital $ 63,338,320 $ 66,597,460
============ ============
</TABLE>
UNAUDITED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
---------------------------- --------------------------------
1995 1994 1995 1994
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Revenues $ 5,811,133 $ 5,420,180 $17,504,285 $16,394,101
Operating expenses (3,057,922) (3,260,168) (9,493,703) (9,457,369)
Management fees and
allocated overhead
from General Partner (667,136) (652,304) (2,078,732) (2,015,471)
Depreciation and
amortization (2,343,671) (2,286,349) (6,439,774) (6,876,719)
----------- ----------- ----------- -----------
Operating loss (257,596) (778,641) (507,924) (1,955,458)
Interest expense (804,780) (718,922) (2,556,865) (1,934,444)
Other, net 8,934 1,885 11,306 (29,379)
----------- ----------- ----------- -----------
Net loss $(1,053,442) $(1,495,678) $(3,053,483) $(3,919,281)
=========== =========== =========== ===========
</TABLE>
7
<PAGE> 8
Management fees paid to Jones Intercable, Inc. by the Venture totaled
$290,556 and $875,214, respectively, for the three and nine month periods ended
September 30, 1995, compared to $271,009 and $819,705, respectively, for the
similar 1994 periods. Reimbursements for overhead and administrative expenses
paid to Jones Intercable Inc. by the Venture totaled $376,580 and $1,203,518,
respectively, for the three and nine month periods ended September 30, 1995,
compared to $381,295 and $1,195,766, respectively, for the similar 1994
periods.
Management fees paid by the Venture and attributable to the
Partnership totaled $78,741 and $237,183, respectively, for the three and nine
months ended September 30, 1995, compared to $73,443 and $222,140,
respectively, for the similar 1994 periods. Reimbursements paid by the Venture
and attributable to the Partnership totaled $102,053 and $326,153,
respectively, for the three and nine months ended September 30, 1995, compared
to $103,331 and $323,840, respectively, for the similar 1994 periods.
8
<PAGE> 9
CABLE TV FUND 14-A, LTD.
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FINANCIAL CONDITION
The Partnership
For the nine months ended September 30, 1995, the Partnership
generated net cash from operating activities totaling $4,902,341, which is
available to fund capital expenditures and non-operating costs. Capital
expenditures totaled approximately $7,323,000 during the first nine months of
1995. Approximately 32 percent of the expenditures related to new plant
construction in all of the Partnership's systems. Approximately 20 percent of
the expenditures related to construction of service drops to subscriber's
homes. The remainder of the expenditures was for various enhancements in all
of the Partnership's systems. These expenditures were funded by cash generated
from operations and borrowings under the Partnership's revolving credit
facility. Capital expenditures for the remainder of 1995 are approximately
$2,286,000. Approximately 69 percent of the expenditures is for new plant
construction. Approximately 27 percent is for construction of service drops to
subscribers' homes. Funding for improvements is expected to come from cash
generated from operations and, in its discretion, advances from the General
Partner.
During July 1994, the Partnership entered into an $80,000,000
revolving credit facility. The revolving credit facility converts to a term
loan on September 30, 1996, at which time the then-outstanding balance is
payable in quarterly installments through March 31, 2002. At September 30,
1995, $80,000,000 was outstanding under this agreement. Interest on the
outstanding principal balance is at the Partnership's option of the Prime rate
plus 1/2 percent or a fixed rate defined as the Certificate of Deposit rate
plus 1-5/8 percent or the London Interbank Offered Rate ("LIBOR") plus 1-1/2
percent. A fee of 3/8 of one percent per annum on the unused portion of the
commitment is also paid. The effective interest rates on amounts outstanding
as of September 30, 1995 and 1994 were 7.34 percent and 6.53 percent,
respectively.
On January 12, 1993, the Partnership entered into an interest rate cap
agreement covering outstanding debt obligations of $5,000,000. The Partnership
paid a fee of $50,000 for this coverage. The agreement protects the
Partnership from LIBOR interest rates that exceed 7 percent for three years
from the date of the agreement. The fee is being charged to interest expense
over the life of the agreement using the straight-line method.
Because the balance on the Partnership's credit facility is at its
maximum of $80,000,000, the Partnership will need to rely on cash on hand, cash
generated from operations and, in its discretion, advances from the General
Partner, to meet its anticipated liquidity and capital needs.
The Venture
In addition to those systems owned exclusively by the Partnership,
Cable TV Fund 14-A, Ltd. owns an interest of approximately 27 percent in Cable
TV Fund 14-A/B Venture (the "Venture"). The Partnership's investment in this
cable television joint venture, accounted for under the equity method,
decreased by $827,494 compared to the December 31, 1994 balance. This decrease
represents the Partnership's proportionate share of losses generated by the
Venture for the first nine months of 1995. These losses are anticipated to
continue.
For the nine months ended September 30, 1995, the Venture generated
net cash from operating activities totaling $4,086,360, which is available to
fund capital expenditures and non-operating costs. During the first nine
months of 1995, capital expenditures in the Venture's Broward County System
totaled approximately $2,900,000. Approximately 38 percent of these
expenditures related to service drops to homes. Approximately 32 percent of
these expenditures related to new plant construction. Rebuild of the cable
plant accounted for approximately 9 percent of these expenditures. The
remainder of the expenditures were for various enhancements in the Broward
County System. Such expenditures were funded primarily from cash generated
from operations. Anticipated capital expenditures for the remainder of 1995
are approximately $300,000. Approximately 95 percent will relate to service
drops to homes. The remainder of the anticipated expenditures are for various
enhancements in the Broward County System. These capital expenditures are
expected to be funded from cash on hand and cash generated from operations.
9
<PAGE> 10
The balance outstanding on the Venture's term loan at September 30,
1995 was $40,950,468. The term loan is payable in quarterly installments which
began March 31, 1993 and is payable in full by December 31, 1999. In September
1994, the General Partner completed negotiations to lower the level of
principal payments in order to provide liquidity for capital expenditures. The
Venture paid a $585,000 principal installment on October 2, 1995 and had paid a
total of $1,170,000 during the nine months ended September 30, 1995.
Installments due during the remainder of 1995 total $585,000. Funding for
these installments is expected to come from cash on hand, cash generated from
operations and, if necessary and in its discretion, advances from the General
Partner. Interest is at the Venture's option of Prime plus 1/2 percent, LIBOR
plus 1-1/2 percent or CD rate plus 1-5/8 percent. The effective interest rates
on amounts outstanding as of September 30, 1995 and 1994 were 7.2 percent and
6.4 percent, respectively.
In January 1993, the Venture entered into an interest rate cap
agreement covering outstanding debt obligations of $25,000,000. The Venture
paid a fee of $246,250. The agreement protects the Venture from LIBOR interest
rates that exceed 7 percent for three years from the date of the agreement.
The General Partner has advanced funds to the Venture to fund capital
expenditures and the General Partner may make additional advances in the future
although it has no obligation to do so. Advances outstanding at September 30,
1995 totaled $1,518,684. Interest on such advances is calculated at the
General Partner's weighted average cost of borrowing. Such advances are
expected to be repaid over time with cash generated from operations.
The General Partner believes that the Venture has sufficient sources
of capital to service its presently anticipated needs from cash on hand, cash
generated from operations and, if necessary and in its discretion, advances
from the General Partner.
Regulatory Matters
The FCC's rate regulations related to the 1992 Cable Act contain
provisions for increasing rates for added channels, external costs and
inflation. The Partnership has been able to adjust rates recently under such
provisions. Such adjustments, together with a reduction in the cost of
implementing the 1992 Cable Act compared to such costs in prior periods, are
expected to cause the Partnership's revenue and cash flow to increase in fiscal
1996.
Currently, there is legislation before Congress which, if enacted,
would significantly change the regulatory environment in which the cable
industry operates. Such legislation may eliminate rate regulation and allow
telephone companies and others much broader entry into the cable television
business and, in turn, may allow cable operators into the telephone and other
telecommunications businesses. While the General Partner is encouraged by
provisions of the legislation, it is too early to assess the impact such
legislation, if enacted, would have on the Partnership.
RESULTS OF OPERATIONS
The Partnership
Revenues of the Partnership totaled $11,129,890 for the three month
period ended September 30, 1995 as compared to $10,200,526 for the comparable
1994 period, an increase of $929,364, or approximately 9 percent. Revenues
totaled $32,661,689 for the nine months ended September 30, 1995 compared to
$29,977,289 for the comparable 1994 period, an increase of $2,684,400, or
approximately 9 percent. An increase in the subscriber base accounted for
approximately 48 percent and 55 percent, respectively, of the increase for the
three and nine month periods ended September 30, 1995. The number of basic
subscribers increased 6,354, or approximately 7 percent, to 102,972 at
September 30, 1995 from 96,618 at September 30, 1994. An increase in
advertising sales revenue accounted for approximately 13 percent and 19
percent, respectively, of the increase for the three and nine month periods
ended September 30, 1995. Rate adjustments during the first quarter of 1995
resulted in approximately 23 percent and 19 percent, respectively, of the
increase in revenues for the three and nine month periods. 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.
10
<PAGE> 11
Operating expenses totaled $6,520,395 for the three month period ended
September 30, 1995 as compared to $5,872,104 for the comparable 1994 period, an
increase of $648,291, or approximately 11 percent. Operating expenses totaled
$19,140,699 for the nine months ended September 30, 1995 as compared to
$17,661,155 for the comparable 1994 period, an increase of $1,479,544, or
approximately 8 percent. Operating expenses represented 59 percent of revenues
for the three and nine month periods of 1995 compared to 58 percent and 59
percent, respectively, for the comparable 1994 periods. The increases for the
three and nine month periods were primarily due to increases in programming
fees, system maintenance costs and advertising sales costs. The increases in
programming and system maintenance costs were due, in part, to increases in the
basic subscriber base. The increases in advertising sales costs were due, in
part, to the increases in advertising revenues. No other individual factor was
significant to the increases in operating expenses.
Management fees and allocated overhead from the General Partner
totaled $1,317,319 for the three month period ended September 30, 1995 as
compared to $1,220,774 for the comparable 1994 period, an increase of $96,545,
or approximately 8 percent. Management fees and allocated overhead from the
General Partner totaled $3,925,453 for the nine month period ended September
30, 1995 as compared to $3,718,694 for the comparable 1994 period, an increase
of $206,759, or approximately 6 percent. The increases for the three and nine
month periods were due to the increases in revenues, upon which such fees and
allocations are based.
Depreciation and amortization expense totaled $3,564,422 for the three
month period ended September 30, 1995 as compared to $3,728,549 for the
comparable 1994 period, a decrease of $164,127, or approximately 4 percent.
Depreciation and amortization expense totaled $10,860,491 for the nine months
ended September 30, 1995 as compared to $11,252,418 for the comparable 1994
period, a decrease of $391,927, or approximately 3 percent. The decreases are
primarily due to the maturation of a portion of the intangible asset base.
Operating loss totaled $272,246 for the three month period ended
September 30, 1995 as compared to $620,901 for the comparable 1994 period, a
decrease of $348,655, or approximately 56 percent. Operating loss totaled
$1,264,954 for the nine month period ended September 30, 1995 as compared to
$2,654,978 for the comparable 1994 period, a decrease of $1,390,024, or
approximately 52 percent. These decreases were due to the increases in
revenues and the decreases 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 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 totaled $3,292,176 for the three months
ended September 30, 1995 as compared to $3,107,648 for the comparable 1994
period, an increase of $184,528, or approximately 6 percent. Operating income
before depreciation and amortization totaled $9,595,537 for the nine month
period ended September 30, 1995 as compared to $8,597,440 for the comparable
1994 period, an increase of $998,097, or approximately 12 percent. The
increases for the three and nine month periods 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 $1,573,688 for the three month period ended
September 30, 1995 as compared to $1,329,990 for the comparable 1994 period, an
increase of $243,698, or approximately 18 percent. Interest expense totaled
$4,512,872 for the nine months ended September 30, 1995 as compared to
$3,194,200 for the comparable 1994 period, an increase of $1,318,672, or
approximately 41 percent. The increases for the three and nine month periods
were due primarily to higher outstanding balances on interest bearing
obligations and higher effective interest rates.
Loss before equity in net loss of cable television joint venture
totaled $1,791,941 for the three month period ended September 30, 1995 as
compared to $2,035,244 for the comparable 1994 period, a decrease of $243,303,
or approximately 12 percent. Loss before equity in net loss of cable
television joint venture totaled $5,773,076 for the nine month period ended
September 30, 1995 as compared to $6,046,290 for the comparable 1994 period, a
decrease of $273,214, or approximately 5 percent. The decreases for the three
and nine month periods were primarily due to the decreases in operating loss
and are expected to continue.
11
<PAGE> 12
The Venture
In addition to the systems owned exclusively by it, the Partnership
owns an approximate 27 percent interest in the Venture. The Venture's revenues
increased $390,953, or approximately 7 percent, to $5,811,133 for the three
months ended September 30, 1995 from $5,420,180 for the three months ended
September 30, 1994. This increase was due to increases in the number of basic
subscribers, premium subscriptions and an increase in basic service rate
adjustments. Revenues for the nine month periods ended September 30, 1995 and
1994 increased $1,110,184, or approximately 7 percent, to $17,504,285 in 1995
from $16,394,101 in 1994. This increase was due to increases in the number of
basic subscribers, premium subscriptions and advertising sales revenues. Basic
subscribers increased approximately 3 percent to 47,427 at September 30, 1995
from 45,842 at September 30, 1994. Premium subscriptions increased
approximately 4 percent to 41,660 at September 30, 1995 from 39,934 at
September 30, 1994. No other individual factor was significant to the increase
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 decreased $202,246, or approximately 6 percent, to
$3,057,922 for the three months ended September 30, 1995 from $3,260,168 for
the three months ended September 30, 1994. This decrease was due to decreases
in personnel and marketing related costs, which were partially offset by an
increase in programming fees. For the nine month periods ended September 30,
1995 and 1994, operating expenses increased $36,334, to $9,493,703 at September
30, 1995 from $9,457,369 at September 30, 1994. This increase was due
primarily to increases in programming fees, which were partially offset by
decreases in personnel, plant and marketing related costs. Operating expenses
represented 53 percent and 54 percent of revenue, respectively, for the three
and nine month periods ended September 30, 1995 compared to 57 percent and 60
percent of revenue, respectively, for the three and nine months ended September
30, 1994.
Management fees and allocated overhead from the General Partner
increased $14,832, or approximately 2 percent, to $667,136 for the three months
ended September 30, 1995 from $652,304 for the three months ended September 30,
1994. For the nine month periods ended September 30, 1995 and 1994, management
fees and allocated overhead from the General Partner increased $63,261, or
approximately 3 percent, to $2,078,732 at September 30, 1995 from $2,015,471 at
September 30, 1994. These increases were due to the increases in revenues,
upon which such fees and allocations are based.
Depreciation and amortization expense increased $57,322, or
approximately 3 percent, to $2,343,671 for the three months ended September 30,
1995 from $2,286,349 for the three months ended September 30, 1994 due to
capital additions during 1995. For the nine month periods ended September 30,
1995 and 1994, depreciation and amortization expense decreased $436,945, or
approximately 6 percent, to $6,439,774 at September 30, 1995 from $6,876,719 at
September 30, 1994. This decrease was due to the maturation of the Venture's
intangible asset base.
In the Broward County System, operating loss decreased $521,045, or
approximately 67 percent, to $257,596 for the three month period ended
September 30, 1995 from $778,641 for the comparable period in 1994. This
operating loss decrease was due to the increase in revenues and the decrease in
operating expenses exceeding the increases in depreciation and amortization
expense and management fees and allocated overhead from the General Partner.
For the nine months ended September 30, 1995 and 1994, operating loss decreased
$1,447,534, or approximately 74 percent, to $507,924 at September 30, 1995 from
$1,955,458 at September 30, 1994. This decrease in operating loss 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 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 $578,367, or approximately 38
percent, to $2,086,075 for the three months ended September 30, 1995 from
$1,507,708 for the three months ended September 30, 1994. This increase was
due to the increase in revenues and the decrease in operating expenses
exceeding the increase in management fees and allocated overhead from the
General Partner. For the nine month periods ended September 30, 1995 and 1994,
operating income before depreciation and amortization increased $1,010,589, or
approximately 21 percent, to $5,931,850 at September 30, 1995 from $4,921,261
at September 30,
12
<PAGE> 13
1994. 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 increased $85,858, or approximately 12 percent, to
$804,780 for the three months ended September 30, 1995 from $718,922 for the
three months ended September 30, 1994. For the nine month periods ended
September 30, 1995 and 1994 interest expense increased $622,421, or
approximately 32 percent, to $2,556,865 at September 30, 1995 from $1,934,444
at September 30, 1994. These increases were primarily due to higher effective
interest rates and higher outstanding balances on interest bearing obligations.
Net loss of the Venture decreased $442,236, or approximately 30
percent, to $1,053,442 for the three months ended September 30, 1995 from
$1,495,678 for the three months ended September 30, 1994. For the nine month
periods ended September 30, 1995 and 1994, net loss decreased $865,798, or
approximately 22 percent, to $3,053,483 at September 30, 1995 from $3,919,281
at September 30, 1994. These losses are the result of the factors discussed
above and are expected to continue in the future.
13
<PAGE> 14
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
14
<PAGE> 15
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 14-A, 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, 1995
15
<PAGE> 16
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NUMBER EXHIBIT DESCRIPTION PAGE
- ------ ------------------- ----
<S> <C> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 712,241
<SECURITIES> 0
<RECEIVABLES> 547,191
<ALLOWANCES> (98,743)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 124,757,001
<DEPRECIATION> (65,100,140)
<TOTAL-ASSETS> 83,042,806
<CURRENT-LIABILITIES> 2,197,304
<BONDS> 80,530,748
<COMMON> 0
0
0
<OTHER-SE> 997,838
<TOTAL-LIABILITY-AND-EQUITY> 83,042,806
<SALES> 0
<TOTAL-REVENUES> 32,661,689
<CGS> 0
<TOTAL-COSTS> 33,926,643
<OTHER-EXPENSES> (4,750)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,512,872
<INCOME-PRETAX> (6,600,570)
<INCOME-TAX> 0
<INCOME-CONTINUING> (6,600,570)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (6,600,570)
<EPS-PRIMARY> (40.84)
<EPS-DILUTED> (40.84)
</TABLE>
