<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 March 31, 1996.
--------------
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 (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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<PAGE>
CABLE TV FUND 14-A, LTD.
------------------------
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
------------------------
<TABLE>
<CAPTION>
March 31, December 31,
ASSETS 1996 1995
------ --------- ------------
<S> <C> <C>
CASH $ 529,057 $ 293,179
TRADE RECEIVABLES, less allowance for doubtful receivables of
$113,665 and $75,209 at March 31, 1996 and December 31, 1995,
respectively 1,208,074 1,328,715
INVESTMENT IN CABLE TELEVISION PROPERTIES:
Property, plant and equipment, at cost 129,915,165 128,171,454
Less- accumulated depreciation (70,475,905) (67,771,303)
------------ ------------
59,439,260 60,400,151
Franchise costs and other intangible assets, net of
accumulated amortization of $36,103,990 at
March 31, 1996 and $35,205,293 at
December 31, 1995, respectively 14,484,280 15,382,977
Investment in cable television joint venture 4,557,075 4,779,072
------------ ------------
Total investment in cable television properties 78,480,615 80,562,200
DEPOSITS, PREPAID EXPENSES AND DEFERRED CHARGES 933,737 716,744
------------ ------------
Total assets $ 81,151,483 $ 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>
March 31, December 31,
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) 1996 1995
- ------------------------------------------------------------------------ ------------ ------------
<S> <C> <C>
LIABILITIES:
Debt $ 80,651,030 $ 80,726,793
Accounts payable - General Partner 2,349,856 887,215
Trade accounts payable and accrued liabilities 1,843,131 2,774,638
Subscriber prepayments 135,728 133,035
------------ ------------
Total liabilities 84,979,745 84,521,681
------------ ------------
PARTNERS' CAPITAL (DEFICIT):
General Partner-
Contributed capital 1,000 1,000
Accumulated deficit (725,514) (703,440)
------------ ------------
(724,514) (702,440)
------------ ------------
Limited Partners-
Net contributed capital (160,000 units outstanding at
March 31, 1996 and December 31, 1995) 68,722,000 68,722,000
Accumulated deficit (71,825,748) (69,640,403)
------------ ------------
(3,103,748) (918,403)
------------ ------------
Total liabilities and partners' capital (deficit) $ 81,151,483 $ 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
March 31,
--------------------------
1996 1995
----------- -----------
<S> <C> <C>
REVENUES $11,455,731 $10,518,379
COSTS AND EXPENSES:
Operating expenses 6,952,930 6,528,527
Management fees and allocated overhead from General Partner 1,351,776 1,334,350
Depreciation and amortization 3,669,752 3,650,089
----------- -----------
OPERATING LOSS (518,727) (994,587)
----------- -----------
OTHER INCOME (EXPENSE):
Interest expense (1,460,881) (1,532,604)
Other, net (5,814) (857)
----------- -----------
Total other income (expense) (1,466,695) (1,533,461)
----------- -----------
LOSS BEFORE EQUITY IN NET LOSS OF CABLE TELEVISION
JOINT VENTURE (1,985,422) (2,528,048)
EQUITY IN NET LOSS OF CABLE TELEVISION JOINT VENTURE (221,997) (184,496)
----------- -----------
NET LOSS $(2,207,419) $(2,712,544)
=========== ===========
ALLOCATION OF NET LOSS:
General Partner $ (22,074) $ (27,125)
=========== ===========
Limited Partners $(2,185,345) $(2,685,419)
=========== ===========
NET LOSS PER LIMITED PARTNERSHIP UNIT $ (13.66) $ (16.78)
=========== ===========
WEIGHTED AVERAGE NUMBER OF LIMITED PARTNERSHIP
UNITS OUTSTANDING 160,000 160,000
=========== ===========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
4
<PAGE>
CABLE TV FUND 14-A, LTD.
------------------------
(A Limited Partnership)
UNAUDITED STATEMENTS OF CASH FLOWS
----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended
March 31,
--------------------------
1996 1995
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(2,207,419) $(2,712,544)
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:
Depreciation and amortization 3,669,752 3,650,089
Equity in net loss of cable television joint venture 221,997 184,496
Amortization of interest rate protection contract - 4,167
Increase (decrease) in advances from General Partner 1,462,641 (706,579)
Decrease in trade receivables 120,641 141,353
Increase in deposits, prepaid expenses and deferred charges (283,446) (57,168)
Decrease in trade accounts payable and accrued liabilities and
subscriber prepayments (928,814) (842,533)
----------- -----------
Net cash provided by (used in) operating activities 2,055,352 (338,719)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment, net (1,743,711) (1,275,612)
----------- -----------
Net cash used in investing activities (1,743,711) (1,275,612)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings 3,546,885 1,600,000
Repayment of debt (3,622,648) (64,810)
----------- -----------
Net cash provided by (used in) financing activities (75,763) 1,535,190
----------- -----------
Increase (decrease) in cash 235,878 (79,141)
Cash, beginning of period 293,179 426,979
----------- -----------
Cash, end of period $ 529,057 $ 347,838
=========== ===========
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ 1,817,501 $ 1,435,149
=========== ===========
</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 March 31, 1996 and December 31, 1995 and its Statements of
Operations and Cash Flows for the three month periods ended March 31, 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 the 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
month periods ended March 31, 1996 and 1995 (excluding the Partnership's
interest in the Venture) were $572,786 and $525,919, respectively.
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 overhead costs are allocated based on revenues of the
Partnership as a percentage of total revenues of owned and managed cable
television systems of the General Partner. Systems owned by the General Partner
and all other systems owned by partnerships for which Jones Intercable, Inc. is
the general partner are also allocated a proportionate share of these expenses.
The General Partner believes that the methodology used in allocating overhead
and administrative expenses is reasonable. Reimbursements made to the General
Partner by the Partnership for allocated overhead and administrative expenses
for the three month periods ended March 31, 1996 and 1995 (excluding the
Partnership's interest in the Venture) were $778,990 and $808,431, respectively.
(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 the second half of 1996. Upon the consummation of the proposed sale of the
Turnersville System, the Partnership will make a distribution of at least
$20,000,000 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.
6
<PAGE>
(4) Financial information regarding the Venture is presented below.
UNAUDITED BALANCE SHEETS
------------------------
<TABLE>
<CAPTION>
March 31, 1996 December 31, 1995
--------------- ------------------
<S> <C> <C>
ASSETS
------
Cash and accounts receivable $ 1,537,069 $ 1,465,837
Investment in cable television properties 59,572,669 60,613,938
Other assets 498,205 367,781
------------ ------------
Total assets $ 61,607,943 $ 62,447,556
============ ============
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
Debt $ 39,040,842 $ 40,530,652
Payables and accrued liabilities 5,396,126 3,926,752
Partners' contributed capital 70,000,000 70,000,000
Accumulated deficit (52,829,025) (52,009,848)
------------ ------------
Total liabilities and partners' capital $ 61,607,943 $ 62,447,556
============ ============
</TABLE>
UNAUDITED STATEMENTS OF OPERATIONS
----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended
March 31,
-------------------------
1996 1995
----------- -----------
<S> <C> <C>
Revenues $ 6,260,965 $ 5,925,887
Operating expenses (3,515,716) (3,270,576)
Management fees and allocated overhead from General Partner (735,844) (738,585)
Depreciation and amortization (2,061,381) (1,746,181)
Operating income (loss) (51,976) 170,545
Interest expense (801,691) (852,720)
Other, net 34,490 1,259
----------- -----------
Net loss $ (819,177) $ (680,916)
=========== ===========
</TABLE>
7
<PAGE>
Management fees and reimbursements for overhead and administrative expenses
paid to Jones Intercable, Inc. by the Venture totaled $311,798 and $424,046,
respectively, for the three month period ended March 31, 1996, and $296,294 and
$442,291, respectively, for the three month period ended March 31, 1995.
Management fees and reimbursements paid by the Venture and attributable to the
Partnership totaled $84,435 and $114,874, respectively, for the three months
ended March 31, 1996, and $80,226 and $119,817, respectively, for the three
months ended March 31, 1995.
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
- -------------------
The Partnership-
Capital expenditures totaled approximately $1,744,000 during the first
three months of 1996. Approximately 44 percent of the expenditures related to
construction of service drops to subscribers' homes. Approximately 26 percent of
the expenditures related to new plant construction in all of the Partnership's
systems. The remainder of the expenditures was for various enhancements in all
of the Partnership's systems. These expenditures were funded primarily from cash
generated from operations and borrowings under the Partnership's revolving
credit facility.
Budgeted capital expenditures for the remainder of 1996 are approximately
$7,800,000. Approximately 40 percent of the total capital expenditures will be
used for new plant construction in all of the Partnership's systems.
Approximately 37 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. Funding for the
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 its
Turnersville, New Jersey cable television system (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 the second half of
1996. Upon the consummation of the proposed sale of the Turnersville System, the
Partnership will make a distribution of at least $20,000,000 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. If Ameritech takes steps to begin providing
cable television service in Naperville, this competition could have a material
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. At March 31, 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 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 proceeds from the sale of the Turnersville System. 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 plus 1-1/4 percent.
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. Upon the sale of
the Partnership's Turnersville System, the Partnership will repay a portion of
the balance outstanding on its credit facility and advances to the General
Partner. This reduction in
9
<PAGE>
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
$221,997 compared to the December 31, 1995 balance. This decrease represents the
Partnership's proportionate share of losses generated by the Venture during the
first quarter of 1996.
The Venture-
For the three months ended March 31, 1996, the Venture generated net cash
from operating activities totaling $3,031,384, which is available to fund
capital expenditures and non-operating costs. During the first three months of
1996, capital expenditures in the Venture-owned Broward County System totaled
approximately $1,468,000. Approximately 53 percent of these expenditures related
to service drops to homes. Approximately 37 percent of these expenditures
related to new plant construction. 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 $3,201,000. Approximately 35 percent
will relate to new plant construction. Approximately 32 percent will relate to
service drops to homes. The remainder of the anticipated expenditures is 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.
The balance outstanding on the Venture's term loan at March 31, 1996 was
$38,902,968. The term loan is payable in quarterly installments which began
March 31, 1993 and is payable in full by December 31, 1999. Installments paid
during the first quarter of 1996 totaled $877,500. Installments due during the
remainder of 1996 total $2,632,500. Funding for these installments is expected
to come from cash on hand, cash generated from operations and, in its
discretion, advances from the General Partner. The Venture will attempt to amend
its credit facility in 1996 to provide additional liquidity. Interest is at the
Venture's option of Prime plus 1/4 percent, the London Interbank Offered Rate
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 March 31, 1996 and 1995
were 6.63 percent and 7.85 percent, respectively.
Because the Venture's credit facility is now a term loan, the Venture will
rely on cash generated from operations and, in its discretion, advances from the
General Partner for its liquidity needs until its credit facility is amended.
REGULATION AND LEGISLATION
- --------------------------
The Partnership has filed cost-of-service showings in response to
rulemakings concerning the Cable Television Consumer Protection and Competition
Act of 1992 (the "1992 Cable Act") for its Turnersville, New Jersey; Buffalo,
Minnesota; Naperville, Illinois and Calvert County, Maryland systems and thus
anticipates no further reductions in rates in these systems. The cost-of-service
showings have not yet received final approvals from regulatory authorities,
however, and there can be no assurance that the Partnership's cost-of-service
showings will prevent further rate reductions in these systems until such final
approvals are received.
The Telecommunications Act of 1996 (the "1996 Act"), which became law on
February 8, 1996, substantially revised the Communications Act of 1934, as
amended, including the Cable Communications Policy Act of 1984 and the 1992
Cable Act, and has been described as one of the most significant changes in
communications regulation since the original Communications Act of 1934. The
1996 Act is intended, in part, to promote substantial competition in the
telephone local exchange and in the delivery of video and other services. As a
result of the 1996 Act, local telephone companies (also known as local exchange
carriers or "LECs") and other service providers are permitted to provide video
programming, and cable television operators are permitted entry into the
telephone local exchange market. The FCC is required to conduct rulemaking
proceedings over the next several months to implement various provisions of the
1996 Act.
Among other provisions, the 1996 Act modified the 1992 Cable Act by
deregulating the cable programming service tier of large cable operators
effective March 31, 1999 and the cable programming service tier of "small" cable
operators in systems providing service to 50,000 or fewer subscribers effective
immediately. The 1996 Act also revised the procedures for filing cable
programming service tier rate complaints and adds a new effective competition
test.
10
<PAGE>
It is premature to predict the specific effects of the 1996 Act on the
cable industry in general or the Partnership and Venture in particular. The FCC
will be undertaking numerous rulemaking proceedings to interpret and implement
the 1996 Act. It is not possible at this time to predict the outcome of those
proceedings or their effect on the Partnership and Venture.
RESULTS OF OPERATIONS
- ---------------------
The Partnership-
Revenues of the Partnership increased $937,352, or approximately 9 percent,
to $11,455,731 for the first quarter of 1996 from $10,518,379 for the first
quarter of 1995. An increase in the subscriber base accounted for approximately
48 percent of the increase, basic service rate adjustments accounted for
approximately 15 percent of the increase and an increase in advertising sales
revenue accounted for approximately 7 percent of the increase in revenues. The
number of basic subscribers increased 6,407, or approximately 6 percent, to
106,512 at March 31, 1996 from 100,105 at March 31, 1995. No other individual
factor was significant to the increases in revenues.
Operating expenses consist primarily of costs associated with the
administration of the Partnership's cable television systems. The principal cost
components are salaries paid to system personnel, programming expenses,
professional fees, subscriber billing costs, rent for leased facilities, cable
system maintenance expenses and consumer marketing expenses.
Operating expenses increased $424,403, or approximately 7 percent, to
$6,952,930 for the quarter ended March 31, 1996 from $6,528,527 for the quarter
ended March 31, 1995. Operating expenses represented 61 percent of revenue in
1996 compared to 62 percent in 1995. Increases in programming fees, personnel
related costs and advertising sales costs primarily accounted for the increase
in operating expenses. This increase was due, in part, to the increase in the
subscriber base and the increase in advertising sales activity. No other
individual factor was significant to the increase in operating expenses.
Management fees and allocated overhead from the General Partner increased
$17,426, or approximately 1 percent, to $1,351,776 for the three month period
ended March 31, 1996 from $1,334,350 for the three month period ended March 31,
1995. The increase is due to the increase in revenues, upon which such
management fees are based.
Depreciation and amortization expense increased $19,663, or approximately 1
percent, to $3,669,752 for the three month period ended March 31, 1996 from
$3,650,089 for the three month period ended March 31, 1995. This increase was
due to capital additions in 1995.
Operating loss decreased $475,860, or approximately 48 percent, to $518,727
for the three month period ended March 31, 1996 from $994,587 for the three
month period ended March 31, 1995 due primarily to the increase in revenues
exceeding the increases in operating expenses, 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 disclosed on the financial statements,
rather it is included because it is an industry standard. Operating income
before depreciation and amortization increased $495,523, or approximately 19
percent, to $3,151,025 for the three months ended March 31, 1996 from $2,655,502
for the similar period in 1995. This increase is 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 $71,723, or approximately 5 percent, to
$1,460,881 for the three months ended March 31, 1996 from $1,532,604 for the
comparable 1995 period due primarily to lower effective interest rates on
interest bearing obligations.
Loss before equity in net loss of cable television joint venture decreased
$542,626, or approximately 21 percent, to $1,985,422 for the three months ended
March 31, 1996 from $2,528,048 for the comparable 1995 period due to the factors
discussed above and are expected to continue.
11
<PAGE>
In addition to the systems owned exclusively by the it, the Partnership
owns a 27 percent interest in the Venture.
The Venture-
Revenues of the Venture's Broward County System increased $335,078, or
approximately 6 percent, to $6,260,965 for the three months ended March 31,
1996, from $5,925,887 for the comparable 1995 period. Basic service rate
adjustments accounted for approximately 53 percent of the increases in revenue.
The number of basic subscribers totaled 50,965 at March 31, 1996 compared to
48,876 at March 31, 1995, an increase of 2,089, or approximately 4 percent. This
increase in basic subscribers accounted for approximately 44 percent of the
increases in revenue. No other individual factor significantly affected the
increase in revenues.
Operating expense increased $245,140, or approximately 7 percent, to
$3,515,716 for the three months ended March 31, 1996 from $3,270,576 for the
comparable 1995 period. Operating expenses represented 56 percent of revenue in
1996, compared to 55 percent in 1995. The increase in operating expenses was due
primarily to increases in programming fees and marketing expenses. No other
individual factor significantly affected the increase in operating expense.
Management fees and allocated overhead from Jones Intercable, Inc.
decreased $2,741, or less than 1 percent, to $735,844 for the three months ended
March 31, 1996 from $738,585 for the comparable 1995 period primarily due to a
decrease in allocated expenses from the General Partner.
Depreciation and amortization expense increased $315,200, or approximately
18 percent, to $2,061,381 for the three months ended March 31, 1996 from
$1,746,181 for the comparable 1995 period. The increase in depreciation and
amortization expense was attributable to capital additions to the Venture's
asset base.
For the three months ended March 31, 1996, the Venture had an operating
loss of $51,976 compared to operating income of $170,545 for the three months
ended March 31, 1995. This change was due to the increases in operating,
depreciation and amortization expenses and management fees and allocated
overhead from Intercable exceeding the increase in revenues.
Operating income before depreciation and amortization expense increased
$92,679, or approximately 5 percent, to $2,009,405 for the three months ended
March 31, 1996 from $1,916,726 for the comparable 1995 period due to the
increase in revenue exceeding the increase in operating expenses and management
fees and allocated overhead from the General Partner.
Interest expense decreased $51,029, or approximately 6 percent, to
$801,691 for the three months ended March 31, 1996 from $852,720 for the
comparable 1995 period due to lower effective interest rates and lower
outstanding balances on interest bearing obligations.
Net loss increased $138,261, or approximately 20 percent, to $819,177 for
the three months ended March 31, 1996 from $680,916 for the comparable 1995
period. These losses were primarily the result of the factors discussed above.
12
<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
13
<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., LTD.
General Partner
By: /S/ Kevin P. Coyle
--------------------------
Kevin P. Coyle
Group Vice President/Finance
(Principal Financial Officer)
Dated: May 13, 1996
14
<TABLE> <S> <C>
<PAGE>
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