<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 June 30, 1996.
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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
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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
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CABLE TV FUND 14-A, LTD.
------------------------
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
------------------------
<TABLE>
<CAPTION>
June 30, December 31,
ASSETS 1996 1995
------ ------------- ------------
<S> <C> <C>
CASH $ 311,076 $ 293,179
TRADE RECEIVABLES, less allowance for doubtful receivables
of $210,160 and $75,209 at June 30, 1996 and December 31, 1995,
respectively 1,110,151 1,328,715
INVESTMENT IN CABLE TELEVISION PROPERTIES:
Property, plant and equipment, at cost 132,776,549 128,171,454
Less- accumulated depreciation (73,111,250) (67,771,303)
------------ ------------
59,665,299 60,400,151
Franchise costs and other intangible assets, net of accumulated
amortization of $37,002,686 and $35,205,293 at June 30, 1996 and
December 31, 1995, respectively 13,585,584 15,382,977
Investment in cable television joint venture 4,409,236 4,779,072
------------ ------------
Total investment in cable television properties 77,660,119 80,562,200
DEPOSITS, PREPAID EXPENSES AND DEFERRED CHARGES 800,231 716,744
------------ ------------
Total assets $ 79,881,577 $ 82,900,838
============ ============
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
2
<PAGE>
CABLE TV FUND 14-A, LTD.
------------------------
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
------------------------
<TABLE>
<CAPTION>
June 30, December 31,
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) 1996 1995
------------------------------------------- ------------- -------------
<S> <C> <C>
LIABILITIES:
Debt $ 80,507,741 $ 80,726,793
Accounts payable - General Partner 2,256,286 887,215
Trade accounts payable and accrued liabilities 2,396,254 2,774,638
Subscriber prepayments 143,054 133,035
------------ ------------
Total liabilities 85,303,335 84,521,681
------------ ------------
PARTNERS' CAPITAL (DEFICIT):
General Partner-
Contributed capital 1,000 1,000
Accumulated deficit (741,449) (703,440)
------------ ------------
(740,449) (702,440)
------------ ------------
Limited Partners-
Net contributed capital (160,000 units outstanding at
June 30, 1996 and December 31, 1995) 68,722,000 68,722,000
Accumulated deficit (73,403,309) (69,640,403)
------------ ------------
(4,681,309) (918,403)
------------ ------------
Total liabilities and partners' capital (deficit) $ 79,881,577 $ 82,900,838
============ ============
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
3
<PAGE>
CABLE TV FUND 14-A, LTD.
------------------------
(A Limited Partnership)
UNAUDITED STATEMENTS OF OPERATIONS
----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended For the Six Months Ended
June 30, June 30,
-------------------------- ------------------------
<S> <C> <C> <C> <C>
1996 1995 1996 1995
----------- ----------- ----------- -----------
REVENUES $11,734,834 $11,013,420 $23,190,565 $21,531,799
COSTS AND EXPENSES:
Operating expenses 6,593,511 6,303,249 13,546,441 12,620,304
Management fees and allocated
overhead from General Partner 1,360,323 1,273,784 2,712,099 2,608,134
Depreciation and amortization 3,563,169 3,645,980 7,232,921 7,296,069
----------- ----------- ----------- -----------
OPERATING INCOME (LOSS) 217,831 (209,593) (300,896) (992,708)
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE):
Interest expense (1,605,558) (1,406,580) (3,066,439) (2,939,184)
Other, net (57,930) (48,386) (63,744) (49,243)
----------- ----------- ----------- -----------
Total other income (expense) (1,663,488) (1,454,966) (3,130,183) (2,988,427)
----------- ----------- ----------- -----------
LOSS BEFORE EQUITY IN NET
LOSS OF CABLE TELEVISION
JOINT VENTURE (1,445,657) (1,664,559) (3,431,079) (3,981,135)
EQUITY IN NET LOSS OF CABLE
TELEVISION JOINT VENTURE (147,839) (357,483) (369,836) (542,011)
----------- ----------- ----------- -----------
NET LOSS $(1,593,496) $(2,022,042) $(3,800,915) $(4,523,146)
=========== =========== =========== ===========
ALLOCATION OF NET LOSS:
General Partner $ (15,935) $ (20,220) $ (38,009) $ (45,231)
=========== =========== =========== ===========
Limited Partners $(1,577,561) $(2,001,822) $(3,762,906) $(4,477,915)
=========== =========== =========== ===========
NET LOSS PER LIMITED
PARTNERSHIP UNIT $(9.86) $(12.51) $(23.52) $(27.99)
=========== =========== =========== ===========
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
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CABLE TV FUND 14-A, LTD.
------------------------
(A Limited Partnership)
UNAUDITED STATEMENTS OF CASH FLOWS
----------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended
June 30,
--------------------------
<S> <C> <C>
1996 1995
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(3,800,915) $(4,523,146)
Adjustments to reconcile net loss to net cash provided by
operating activities:
Depreciation and amortization 7,232,921 7,296,069
Equity in net loss of cable television joint venture 369,836 542,011
Amortization of interest rate protection contract - 8,334
Increase (decrease) in advances from General Partner 1,369,071 (368,014)
Decrease in trade receivables 218,564 104,275
Decrease (increase) in deposits, prepaid expenses and
deferred charges (179,068) 7,647
Decrease in trade accounts payable, accrued liabilities
and subscriber prepayments (368,365) (736,099)
----------- -----------
Net cash provided by operating activities 4,842,044 2,331,077
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment, net (4,605,095) (3,860,236)
----------- -----------
Net cash used in investing activities (4,605,095) (3,860,236)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings 67,237 2,625,316
Repayment of debt (286,289) (115,998)
----------- -----------
Net cash provided by (used in) financing activities (219,052) 2,509,318
----------- -----------
Increase in cash 17,897 980,159
Cash, beginning of period 293,179 426,979
----------- -----------
Cash, end of period $ 311,076 $ 1,407,138
=========== ===========
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ 2,665,024 $ 3,159,891
=========== ===========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
5
<PAGE>
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 June 30, 1996 and December 31, 1995, its Statements of
Operations for the three and six month periods ended June 30, 1996 and 1995 and
its Statements of Cash Flows for the six month periods ended June 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 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 a 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., 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 six month periods ended June 30, 1996 (excluding the Partnership's interest
in the Venture) were $586,742 and $1,159,528, respectively, compared to $550,671
and $1,076,590, 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 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 six month
periods ended June 30, 1996 (excluding the Partnership's interest in the
Venture) were $773,581 and $1,552,571, respectively, compared to $723,113 and
$1,531,544, 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) In March 1996, the Partnership entered into an agreement to sell the
Turnersville System to an unaffiliated party for a sales price totaling
approximately $84,500,000, subject to closing adjustments that potentially could
reduce the sales price to $80,500,000. Closing of this sale is expected to occur
in January 1997. Upon the consummation of the proposed sale of the Turnersville
System, the Partnership will make a distribution of approximately $20,000,000
(or approximately $250 per each $1,000 invested) of the net sales proceeds to
its limited partners, repay any amounts due to the General Partner and, as
required under the terms of the Partnership's credit facility, the balance will
be used to repay a portion of the Partnership's bank indebtedness. Because this
distribution will not return 125 percent of the amount initially contributed to
the Partnership by the limited partners, the General Partner will not receive a
distribution on the sale of the Turnersville System. 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. Because the
Turnersville System does not represent a sale of all or substantially all of the
Partnership's assets, no vote of the limited partners of the Partnership is
required to approve this sale.
(4) Certain prior year amounts have been reclassified to conform to the 1996
presentation.
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(5) Financial information regarding the Venture is presented below:
UNAUDITED BALANCE SHEETS
------------------------
<TABLE>
<CAPTION>
ASSETS June 30, 1996 December 31, 1995
------ -------------- -----------------
<S> <C> <C>
Cash and accounts receivable $ 1,261,922 $ 1,465,837
Investment in cable television properties 58,460,768 60,613,938
Other assets 445,455 367,781
------------ ------------
Total assets $ 60,168,145 $ 62,447,556
============ ============
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
Debt $ 42,214,258 $ 40,530,652
Payables and accrued liabilities 1,328,444 3,926,752
Partners' contributed capital 70,000,000 70,000,000
Accumulated deficit (53,374,557) (52,009,848)
------------ ------------
Total liabilities and partners' capital $ 60,168,145 $ 62,447,556
============ ============
</TABLE>
UNAUDITED STATEMENTS OF OPERATIONS
----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended For the Six Months Ended
June 30, June 30,
-------------------------- ------------------------
1996 1995 1996 1995
------------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
Revenues $ 6,272,821 $ 5,767,265 $12,533,786 $11,693,152
Operating expenses (3,398,184) (3,165,205) (6,913,900) (6,435,781)
Management fees and allocated overhead to
General Partner (732,724) (673,011) (1,468,568) (1,411,596)
Depreciation and amortization (2,059,297) (2,349,922) (4,120,678) (4,096,103)
----------- ----------- ----------- -----------
Operating income (loss) 82,616 (420,873) 30,640 (250,328)
Interest expense (690,065) (899,365) (1,491,756) (1,752,085)
Other, net 61,917 1,113 96,407 2,372
----------- ----------- ----------- -----------
Net loss $ (545,532) $(1,319,125) $(1,364,709) $(2,000,041)
=========== =========== =========== ===========
</TABLE>
Management fees paid to the General Partner by the Venture totaled
$313,641 and $626,689, respectively, for the three and six month periods ended
June 30, 1996, as compared to $288,364 and $584,658, respectively, for the
similar 1995 periods. Reimbursements for overhead and administrative expenses
paid to the General Partner by the Venture totaled $419,083 and $841,879,
respectively, for the three and six month periods ended June 30, 1996, compared
to $384,647 and $826,938 for the similar 1995 periods. Management fees paid by
the Venture and attributable to the Partnership totaled $84,997 and $169,832,
respectively, for the three and six months ended June 30, 1996, compared to
$78,147 and $158,442, respectively, for the similar 1995 periods.
Reimbursements paid by the Venture and attributable to
7
<PAGE>
the Partnership totaled $113,571 and $228,149, respectively, for the three and
six months ended June 30, 1996, compared to $104,239 and $224,100, respectively,
for the similar 1995 periods.
8
<PAGE>
CABLE TV FUND 14-A, 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 addition to the proposed sale of the
Turnersville System in January 1997, the General Partner has begun to solicit
buyers for certain of the Partnership's other cable television systems,
including the Partnership's Naperville, Illinois and Central Illinois systems.
There is no assurance as to the timing or terms of any sales.
The Partnership-
For the six months ended June 30, 1996, the Partnership generated net cash
from operating activities totaling $4,842,044, which is available to fund
capital expenditures and non-operating costs. Capital expenditures totaled
approximately $4,605,000 during the first six months of 1996. Approximately 38
percent of the expenditures related to new plant construction in all of the
Partnership's systems. Approximately 36 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 advances
from the General Partner. Budgeted capital expenditures for the remainder of
1996 are approximately $4,927,000. Approximately 38 percent of the expenditures
will be used for new plant construction in all of the Partnership's systems.
Approximately 41 percent will relate to construction of service drops to
subscribers' homes. The remainder of the anticipated expenditures are for
various enhancements in all of the Partnership's systems. These capital
expenditures are necessary to maintain the value of the Partnership's systems.
Funding for improvements is expected to come from cash on hand, cash generated
from operations and, in its discretion, advances from the General Partner.
In March 1996, the Partnership entered into an agreement to sell the
Turnersville System to an unaffiliated party for a sales price totaling
approximately $84,500,000, subject to closing adjustments that potentially could
reduce the sales price to $80,500,000. Closing of this sale is expected to
occur in January 1997. Upon the consummation of the proposed sale of the
Turnersville System, the Partnership will make a distribution of approximately
$20,000,000 (or approximately $250 per each $1,000 invested) of the net sales
proceeds to its limited partners, repay any amounts due to the General Partner
and, as required under the terms of the Partnership's credit facility, the
balance will be used to repay a portion of the Partnership's bank indebtedness.
Because this distribution will not return 125 percent of the amount initially
contributed to the Partnership by the limited partners, the General Partner will
not receive a distribution on the sale of the Turnersville System. 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.
Because the Turnersville System does not represent a sale of all or
substantially all of the Partnership's assets, no vote of the limited partners
of the Partnership is required to approve this sale.
Ameritech, which provides telephone service in a multi-state region
including Illinois, has obtained a franchise that will allow it to provide cable
television service in Naperville, Illinois, a community currently served by the
Partnership's Naperville System. Ameritech anticipates providing cable
television service in Naperville by the fourth quarter of 1996. This
competition may have an adverse effect on the Naperville System's revenues, cash
flow and fair market value. It could also have an adverse impact on the
Partnership's ability to sell the Naperville System. The General Partner is
taking prudent steps necessary to meet this potential competition from Ameritech
and to safeguard the value of the Naperville System.
During July 1994, the Partnership entered into an $80,000,000 revolving
credit facility. In July 1996, the credit facility was amended to permit a
distribution to the limited partners of a portion of the proceeds from the sale
of the Turnersville System. At June 30, 1996, the maximum amount available was
outstanding under this agreement. 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
9
<PAGE>
through March 31, 2002. Payments due during 1996 total $2,000,000 and will be
funded from cash on hand, cash generated from operations, and, if necessary,
advances from the General Partner. Interest on the outstanding principal balance
is at the Partnership's option of the Prime Rate plus 1/4 percent or the
Certificate of Deposit Rate plus 1-3/8 percent or the London Interbank Offered
Rate ("LIBOR") plus 1-1/4 percent. The effective interest rates on amounts
outstanding as of June 30, 1996 and 1995 were 6.74 and 7.68 percent,
respectively.
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 the General Partner's discretion, advances
from the General Partner, to meet its anticipated liquidity and capital needs.
Upon the sale of the Partnership's Turnersville System, which is expected to
close in January 1997, the Partnership will repay a portion of the balance
outstanding on its credit facility and advances to the General Partner. This
reduction in debt will provide liquidity and the Partnership should have
sufficient sources of capital to meet its anticipated operating needs.
In addition to those systems owned directly by it, the Partnership owns a
27 percent interest in the Venture. The Partnership's investment in this cable
television joint venture, accounted for under the equity method, decreased by
$369,836 compared to the December 31, 1995 balance. This decrease represents the
Partnership's proportionate share of losses generated by the Venture during the
six months ended June 30, 1996.
The Venture-
For the six months ended June 30, 1996, the Venture generated net cash from
operating activities totaling $411,366, which is available to fund capital
expenditures and non-operating costs. During the first six months of 1996,
capital expenditures in the Venture-owned Broward County System totaled
approximately $1,930,000. Approximately 38 percent of these expenditures
related to new plant construction. Approximately 37 percent of these
expenditures related to service drops to homes. The remainder of the
expenditures was 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 1996 are approximately
$2,270,000. Approximately 39 percent will relate to service drops to homes.
Approximately 35 percent will relate to new plant construction. The remainder
of the anticipated expenditures is for various enhancements in the Broward
County System. These capital expenditures are necessary to maintain the value of
the Broward County System. These capital expenditures are expected to be funded
from cash on hand and cash generated from operations.
In June 1996, the Venture amended its existing term loan providing for a
reducing revolving credit facility with an available commitment of $42,500,000.
The entire $42,500,000 commitment is available through December 31, 1998, at
which time the commitment will be repaid in twenty quarterly installments with a
final maturity of December 31, 2003. At June 1996, the balance outstanding was
$42,102,968, leaving $397,032 available for future borrowings. Interest is at
the Venture's option of Prime plus 1/4 percent, LIBOR plus 1-1/4 percent or the
Certificate of Deposit Rate plus 1-3/8 percent. The effective interest rates on
amounts outstanding as of June 30, 1996 and 1995 were 6.74 percent and 7.64
percent, respectively.
The General Partner believes that the Venture has sufficient sources of
capital from cash generated from operations to service its presently anticipated
needs.
RESULTS OF OPERATIONS
- ---------------------
The Partnership-
Revenues of the Partnership totaled $11,734,834 for the three month period
ended June 30, 1996 compared to $11,013,420 for the comparable 1995 period, an
increase of $721,414, or approximately 7 percent. Revenues totaled $23,190,565
for the six months ended June 30, 1996 compared to $21,531,799 for the
comparable 1995 period, an increase of $1,658,766, or approximately 8 percent.
Increases in the subscriber base accounted for approximately 59 percent and 53
percent, respectively, of the increases for the three and six month periods
ended June 30, 1996. The number of basic subscribers increased 6,148, or
approximately 6 percent, to 107,694 at June 30, 1996 from 101,546 at June 30,
1995. Rate increases during the first quarter of 1996 accounted for
approximately 20 percent and 17 percent,
10
<PAGE>
respectively, of the increase in revenues for the three and six month periods
ended June 30, 1996. 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 totaled $6,593,511 for the three month period ended June
30, 1996 compared to $6,303,249 for the comparable 1995 period, an increase of
$290,262, or approximately 5 percent. Operating expenses totaled $13,546,441
for the six months ended June 30, 1996 compared to $12,620,304 for the
comparable 1995 period, an increase of $926,137, or approximately 7 percent.
Operating expenses represented 57 percent and 58 percent, respectively, of
revenues for the three and six month periods ended June 30, 1996 compared to 55
percent and 59 percent, respectively, for the comparable 1995 periods.
Increases in programming fees primarily accounted for the increases in operating
expenses for the three and six month periods ended June 30, 1996. The increases
in programming fees were due, in part, to increases in the basic subscriber
base. No other individual factor was significant to the increases in operating
expenses.
Management fees and allocated overhead from the General Partner totaled
$1,360,323 for the three month period ended June 30, 1996 compared to $1,273,784
for the comparable 1995 period, an increase of $86,539, or approximately 7
percent. Management fees and allocated overhead from the General Partner
totaled $2,712,099 for the six month period ended June 30, 1996 compared to
$2,608,134 for the comparable 1995 period, an increase of $103,965, or
approximately 4 percent. The increases for the three and six month periods
ended June 30, 1996 were due to the increases in revenues, upon which such fees
are based.
Depreciation and amortization expense totaled $3,563,169 for the three
month period ended June 30, 1996 compared to $3,645,980 for the comparable 1995
period, a decrease of $82,811, or approximately 2 percent. Depreciation and
amortization expense totaled $7,232,921 for the six months ended June 30, 1996
compared to $7,296,069 for the comparable 1995 period, a decrease of $63,148, or
approximately 1 percent. The decreases were primarily due to the maturation of
a portion of the asset base.
The Partnership recognized operating income of $217,831 for the three month
period ended June 30, 1996 compared to an operating loss of $209,593 for the
comparable 1995 period. This increase was due to the increase in revenues and
the decrease in depreciation and amortization expense exceeding the increase in
operating expenses and management fees and allocated overhead from the General
Partner. Operating loss totaled $300,896 for the six month period ended June
30, 1996 compared to $992,708 for the comparable 1995 period, a decrease of
$691,812, or approximately 70 percent. This decrease was due to the increase in
revenues and the decrease in depreciation and amortization expense exceeding the
increase 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 totaled $3,781,000
for the three months ended June 30, 1996 compared to $3,436,387 for the
comparable 1995 period, an increase of $344,613, or approximately 10 percent.
Operating income before depreciation and amortization totaled $6,932,025 for the
six month period ended June 30, 1996 compared to $6,303,361 for the comparable
1995 period, an increase of $628,664, or approximately 10 percent. The
increases for the three and six month periods ended June 30, 1996 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 $1,605,558 for the three month period ended June
30, 1996 compared to $1,406,580 for the comparable 1995 period, an increase of
$198,978, or approximately 14 percent. Interest expense totaled $3,066,439 for
the six months ended June 30, 1996 compared to $2,939,184 for the comparable
1995 period, an increase of $127,255, or approximately 4 percent. The increases
for the three and six month periods were due primarily to higher outstanding
balances on interest bearing obligations.
11
<PAGE>
Loss before equity in net loss of cable television joint venture totaled
$1,445,657 for the three month period ended June 30, 1996 compared to $1,664,559
for the comparable 1995 period, a decrease of $218,902. Loss before equity in
net loss of cable television joint venture totaled $3,431,079 for the six month
period ended June 30, 1996 compared to $3,981,135 for the comparable 1995
period, a decrease of $550,056, or approximately 14 percent. The decreases for
the three and six month periods ended June 30, 1996 were primarily due to the
factors discussed above.
The Venture-
Revenues of the Venture's Broward County System increased $505,556, or
approximately 9 percent, to $6,272,821 for the three months ended June 30, 1996
from $5,767,265 for the three months ended June 30, 1995. Revenues for the six
month periods ended June 30, 1996 and 1995 increased $840,634, or approximately
7 percent, to $12,533,786 in 1996 from $11,693,152 in 1995. The increase in
revenues was due to increases in the number of basic subscribers and premium
subscriptions and basic rate adjustments. Basic subscribers increased
approximately 3 percent to 49,117 at June 30, 1996 from 47,554 at June 30, 1995.
Premium subscriptions increased approximately 3 percent to 42,697 at June 30,
1996 from 41,400 at June 30, 1995. The increases in the number of basic
subscribers and premium subscriptions accounted for approximately 38 percent and
42 percent, respectively of the increases in revenues for the three and six
month periods ended June 30, 1996. Basic rate adjustments accounted for
approximately 45 percent and 47 percent, respectively, of the increase in
revenues for the three and six month periods ended June 30, 1996. 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 increased $232,979, or approximately 7 percent, to
$3,398,184 for the three months ended June 30, 1996 from $3,165,205 for the
three months ended June 30, 1995. This increase in operating expenses was due
to increases in programming fees and personnel related costs, which were
partially offset by a decrease in marketing costs. For the six month periods
ended June 30, 1996 and 1995, operating expense increased $478,119, or
approximately 7 percent, to $6,913,900 at June 30, 1996 from $6,435,781 at June
30, 1995. The increase in operating expense was due primarily to increases in
programming fees. No other individual factor was significant to the increase in
operating expense. Operating expenses represented 54 percent and 55 percent,
respectively, of revenue for the three and six months ended June 30, 1996
compared to 55 percent of revenue for both the three and six months ended June
30, 1995.
Management fees and allocated overhead from the General Partner increased
$59,713, or approximately 9 percent, to $732,724 for the three months ended June
30, 1996 from $673,011 for the three months ended June 30, 1995. For the six
month periods ended June 30, 1996 and 1995, management fees and allocated
overhead from the General Partner increased $56,972, or approximately 4 percent,
to $1,468,568 at June 30, 1996 from $1,411,596 at June 30, 1995. These
increases were due to the increases in revenues, upon which such fees are based.
Depreciation and amortization expense decreased $290,625, or approximately
12 percent, to $2,059,297 for the three months ended June 30, 1996 from
$2,349,922 for the three months ended June 30, 1995. This decrease was due to
the maturation of the Venture's tangible asset base. For the six month periods
ended June 30, 1996 and 1995, depreciation and amortization expense increased
$24,575, or approximately 1 percent, to $4,120,678 at June 30, 1996 from
$4,096,103 at June 30, 1995 due to capital additions during 1996.
The Venture reported operating income of $82,616 for the three month period
ended June 30, 1996, compared to an operating loss of $420,873 for the three
month period ended June 30, 1995. This was due to the increase in revenue and
the decrease in depreciation and amortization expense exceeding the increase in
operating expense and management fees and allocated overhead from the General
Partner. For the six month period ended June 30, 1996, the Venture reported an
operating income of $30,640, compared to an operating loss of $250,328 for the
six month period ended June 30, 1995. This was due to the increase in revenues
exceeding the increase in operating expense, depreciation and amortization
expense 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
12
<PAGE>
disclosed on the financial statements, rather it is included because it is an
industry standard. Operating income before depreciation and amortization
increased $212,864, or approximately 11 percent, to $2,141,913 for the three
months ended June 30, 1996 from $1,929,049 for the three months ended June 30,
1995. For the six month periods ended June 30, 1996 and 1995, operating income
before depreciation and amortization increased $305,543, or approximately 8
percent, to $4,151,318 at June 30, 1996 from $3,845,775 at June 30, 1995. These
increases were due to the increases in revenue exceeding the increases in
operating expense and management fees and allocated overhead from the General
Partner.
Interest expense decreased $209,300, or approximately 23 percent, to
$690,065 for the three months ended June 30, 1996 from $899,365 for the three
months ended June 30, 1995. For the six month periods ended June 30, 1996 and
1995 interest expense decreased $260,329, or approximately 15 percent, to
$1,491,756 at June 30, 1996 from $1,752,085 at June 30, 1995. These decreases
were primarily due to lower effective interest rates and lower outstanding
balances on interest bearing obligations.
Net loss of the Venture decreased $773,593, or approximately 59 percent, to
$545,532 for the three months ended June 30, 1996 from $1,319,125 for the three
months ended June 30, 1995. For the six month periods ended June 30, 1996 and
1995, net loss decreased $635,332, or approximately 32 percent, to $1,364,709 at
June 30, 1996 from $2,000,041 at June 30, 1995. These losses are the result of
the factors discussed above and are expected to continue in the future.
13
<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
None
14
<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.
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: August 14, 1996
15
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 311,076
<SECURITIES> 0
<RECEIVABLES> 1,110,151
<ALLOWANCES> (210,160)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 132,776,549
<DEPRECIATION> (73,111,250)
<TOTAL-ASSETS> 79,881,577
<CURRENT-LIABILITIES> 4,795,594
<BONDS> 80,507,741
0
0
<COMMON> 0
<OTHER-SE> 5,421,758
<TOTAL-LIABILITY-AND-EQUITY> 79,881,577
<SALES> 0
<TOTAL-REVENUES> 23,190,565
<CGS> 0
<TOTAL-COSTS> 23,491,461
<OTHER-EXPENSES> 63,744
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,066,439
<INCOME-PRETAX> (3,431,079)
<INCOME-TAX> 0
<INCOME-CONTINUING> (3,431,079)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,431,079)
<EPS-PRIMARY> (23.52)
<EPS-DILUTED> (23.52)
</TABLE>
