<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, 1997.
--------------
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>
CABLE TV FUND 14-A, LTD.
------------------------
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
------------------------
<TABLE>
<CAPTION>
March 31, December 31,
ASSETS 1997 1996
------ ------------- -------------
<S> <C> <C>
CASH $ 4,507,261 $ 1,257,022
TRADE RECEIVABLES, less allowance for doubtful receivables of
$156,144 and $255,399 at March 31, 1997 and December 31, 1996,
respectively 538,877 1,142,329
INVESTMENT IN CABLE TELEVISION PROPERTIES:
Property, plant and equipment, at cost 94,876,548 137,237,866
Less- accumulated depreciation (52,551,453) (76,946,443)
------------ ------------
42,325,095 60,291,423
Franchise costs and other intangible assets, net of
accumulated amortization of $26,715,844 and
$38,800,080 at March 31, 1997 and
December 31, 1996, respectively 8,667,934 11,788,190
Investment in cable television joint venture 3,802,688 3,963,820
------------ ------------
Total investment in cable television properties 54,795,717 76,043,433
DEPOSITS, PREPAID EXPENSES AND DEFERRED CHARGES 1,070,263 900,270
------------ ------------
Total assets $ 60,912,118 $ 79,343,054
============ ============
</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) 1997 1996
------------------------------------------- ------------- -------------
<S> <C> <C>
LIABILITIES:
Debt $ 32,802,350 $ 85,424,507
General Partner advances - 352,232
Trade accounts payable and accrued liabilities 1,525,060 2,412,088
Subscriber prepayments 129,607 146,253
------------ ------------
Total liabilities 34,457,017 88,335,080
------------ ------------
PARTNERS' CAPITAL (DEFICIT):
General Partner-
Contributed capital 1,000 1,000
Accumulated deficit (25,768) (777,152)
------------ ------------
(24,768) (776,152)
------------ ------------
Limited Partners-
Net contributed capital (160,000 units outstanding at
March 31, 1997 and December 31, 1996) 68,722,000 68,722,000
Accumulated deficit (17,242,131) (76,937,874)
Distributions (25,000,000) -
------------ ------------
26,479,869 (8,215,874)
------------ ------------
Total liabilities and partners' capital (deficit) $ 60,912,118 $ 79,343,054
============ ============
</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,
--------------------------
1997 1996
----------- ------------
<S> <C> <C>
REVENUES $ 7,770,411 $11,455,731
COSTS AND EXPENSES:
Operating expenses 4,525,488 6,952,930
Management fees and allocated overhead from General Partner 915,785 1,351,776
Depreciation and amortization 2,822,180 3,669,752
----------- -----------
OPERATING LOSS (493,042) (518,727)
----------- -----------
OTHER INCOME (EXPENSE):
Interest expense (617,003) (1,460,881)
Gain on sale of cable television system 62,923,951 -
Other, net (1,205,647) (5,814)
----------- -----------
Total other income (expense), net 61,101,301 (1,466,695)
----------- -----------
INCOME (LOSS) BEFORE EQUITY IN NET LOSS OF CABLE
TELEVISION JOINT VENTURE 60,608,259 (1,985,422)
EQUITY IN NET LOSS OF CABLE TELEVISION JOINT VENTURE (161,132) (221,997)
----------- -----------
NET INCOME (LOSS) $60,447,127 $(2,207,419)
=========== ===========
ALLOCATION OF NET INCOME (LOSS):
General Partner $ 751,384 $ (22,074)
=========== ===========
Limited Partners $59,695,743 $(2,185,345)
=========== ===========
NET INCOME (LOSS) PER LIMITED PARTNERSHIP UNIT $373.10 $(13.66)
=========== ===========
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,
---------------------------
1997 1996
------------ -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 60,447,127 $(2,207,419)
Adjustments to reconcile net income (loss) to net cash provided
by (used in) operating activities:
Depreciation and amortization 2,822,180 3,669,752
Gain on sale of cable television system (62,923,951) -
Equity in net loss of cable television joint venture 161,132 221,997
Decrease in trade receivables 603,452 120,641
Increase in deposits, prepaid expenses and deferred charges (252,447) (283,446)
Decrease in trade accounts payable and accrued liabilities and
subscriber prepayments (903,674) (928,814)
Increase (decrease) in General Partner advances (352,232) 1,462,641
------------ -----------
Net cash provided by (used in) operating activities (398,413) 2,055,352
------------ -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (1,116,691) (1,743,711)
Proceeds from sale of cable television system, net of brokerage fee 82,387,500 -
------------ -----------
Net cash provided by (used in) investing activities 81,270,809 (1,743,711)
------------ -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings 32,300,000 3,546,885
Repayment of debt (84,922,157) (3,622,648)
Distribution to Limited Partners (25,000,000) -
------------ -----------
Net cash used in financing activities (77,622,157) (75,763)
------------ -----------
Increase in cash 3,250,239 235,878
Cash, beginning of period 1,257,022 293,179
------------ -----------
Cash, end of period $ 4,507,261 $ 529,057
============ ===========
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ 1,276,471 $ 1,817,501
============ ===========
</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, 1997 and December 31, 1996 and its results of
operations and cash flows for the three month periods ended March 31, 1997 and
1996. 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 Buffalo, Minnesota; Naperville, Illinois; Calvert
County, Maryland; and certain communities in Central Illinois (the "Central
Illinois System"). 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"). As discussed below, the Partnership sold its
cable television system in Turnersville, New Jersey (the "Turnersville System")
on January 10, 1997 and entered into an asset purchase agreement on March 12,
1997 to sell the Central Illinois System.
(2) Jones Intercable, Inc., a publicly held Colorado corporation, is the
"General Partner" and 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, 1997 and 1996 (excluding the
Partnership's interest in the Venture) were $388,521 and $572,786, 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 services
and other corporate related facilities costs. Such personnel provide
engineering, marketing, administrative, accounting, legal and investor relations
services to the Partnership. Such services, and their related costs, are
necessary to the operation of the Partnership and would have been incurred by
the Partnership if it was a stand alone entity. 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 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 month periods ended
March 31, 1997 and 1996 (excluding the Partnership's interest in the Venture)
were $527,264 and $778,990, respectively.
(3) On January 10, 1997, the Partnership sold the Turnersville System to an
unaffiliated party for a sales price of $84,500,000. The Partnership distributed
$25,000,000 (or approximately $313 per each $1,000 invested in the Partnership)
of the sale proceeds to its limited partners, and, as required under the terms
of the Partnership's credit facility, approximately $52,500,000 of the sale
proceeds were used to repay a portion of the Partnership's indebtedness. Because
the $25,000,000 distribution to the limited partners did not return 125 percent
of the amount initially contributed by the limited partners, the General Partner
did not receive a distribution from the proceeds of the sale of the Turnersville
System. The Jones Group, Ltd., a subsidiary of the General Partner, received a
brokerage fee of $2,112,500, representing 2.5 percent of the sales price, for
acting as a broker in this transaction. The balance of the proceeds will be used
by the Partnership for ongoing working capital. Because the sale of the
Turnersville System did not represent a sale of all or substantially all of the
Partnership's assets, no vote of the limited partners of the Partnership was
required to approve this sale.
6
<PAGE>
The pro forma effect of the sale of the Turnersville System on the results
of the Partnership's operations for the three months ended March 31, 1997 and
1996, assuming the transaction had occurred at the beginning of the year, is
presented in the following unaudited tabulation:
<TABLE>
<CAPTION>
For the Three Months Ended March 31, 1997
--------------------------------------------------
Pro Forma
As Reported Adjustments Pro Forma
------------ ------------- ------------
<S> <C> <C> <C>
Revenues $ 7,770,411 $ (452,711) $ 7,317,700
=========== ============ ===========
Operating Loss $ (493,042) $ (174,315) $ (667,357)
=========== ============ ===========
Income (Loss) Before Equity in Net Loss
of Cable Television Joint Venture $60,608,259 $(61,944,614) $(1,336,355)
=========== ============ ===========
<CAPTION>
For the Three Months Ended March 31, 1996
--------------------------------------------------
Pro Forma
As Reported Adjustments Pro Forma
------------ ------------ ------------
<S> <C> <C> <C>
Revenues $11,455,731 $(4,183,084) $7,272,647
=========== =========== ==========
Operating Loss $ (518,727) $ (431,238) $ (949,965)
=========== =========== ==========
Income (Loss) Before Equity in Net Loss
of Cable Television Joint Venture $(1,985,422) $ 3,074,414 $1,088,992
=========== =========== ==========
</TABLE>
(4) On March 12, 1997, the Partnership entered into an asset purchase agreement
to sell the Central Illinois System to an unaffiliated party for a sales price
of $20,100,000, subject to customary closing adjustments. The closing of this
sale is subject to a number of conditions, including obtaining necessary
governmental and other third party consents and the expiration or termination of
the waiting period specified in the Hart-Scott-Rodino Antitrust Improvements Act
of 1976 and the rules and regulations thereunder. Closing is expected to occur
during the second half of 1997. Upon the consummation of the proposed sale of
the Central Illinois System, the Partnership will repay $10,050,000 of the then-
outstanding balance of its credit facility, and a brokerage fee to The Jones
Group, Ltd. totaling approximately $502,500, and then the Partnership will
distribute the net sale proceeds of approximately $9,547,500 to its limited
partners. This distribution will give the Partnership's limited partners an
approximate return of $119 per $1,000 invested in the Partnership. Because
limited partners have not received total distributions equal to 125 percent of
the capital initially contributed to the Partnership by the limited partners,
the General Partner will not receive any of the proceeds from the Central
Illinois System's sale. Taking into account the distribution made on the sale of
the Turnersville System and the anticipated distribution to be made on the sale
of the Central Illinois System in 1997, the limited partners should receive a
total of $432 for each $1,000 invested in the Partnership.
7
<PAGE>
(5) Financial information regarding the Venture is presented below.
UNAUDITED BALANCE SHEETS
------------------------
<TABLE>
<CAPTION>
March 31, 1997 December 31, 1996
--------------- -----------------
<S> <C> <C>
ASSETS
------
Cash and accounts receivable $ 1,766,885 $ 1,368,882
Investment in cable television properties 55,406,992 56,526,226
Other assets 569,753 381,950
------------ ------------
Total assets $ 57,743,630 $ 58,277,058
============ ============
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
Debt $ 41,644,430 $ 41,262,561
Payables and accrued liabilities 1,711,941 2,032,654
Partners' contributed capital 70,000,000 70,000,000
Accumulated deficit (55,612,741) (55,018,157)
------------ ------------
Total liabilities and partners' capital $ 57,743,630 $ 58,277,058
============ ============
<CAPTION>
UNAUDITED STATEMENTS OF OPERATIONS
----------------------------------
For the Three Months Ended
March 31,
---------------------------
1997 1996
---------- -----------
<S> <C> <C>
Revenues $6,844,105 $6,260,965
Operating expenses 3,833,754 3,515,716
Management fees and allocated overhead
from General Partner 813,632 735,844
Depreciation and amortization 2,121,717 2,061,381
Operating income (loss) 75,002 (51,976)
Interest expense (703,657) (801,691)
Other, net 34,071 34,490
---------- ----------
Net loss $ (594,584) $ (819,177)
========== ==========
</TABLE>
Management fees and reimbursements for overhead and administrative
expenses paid to Jones Intercable, Inc. by the Venture totaled $342,205 and
$471,427, respectively, for the three month period ended March 31, 1997, and
$313,048 and $422,796, respectively, for the three month period ended March 31,
1996.
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-
It is the General Partner's publicly announced policy that it intends to
liquidate its managed limited partnerships, including the Partnership, as
opportunities for sales of partnership cable television systems arise in the
marketplace over the next several years. In accordance with the General
Partner's policy, the Naperville System is being marketed for sale. There is no
assurance as to the timing or terms of any sales.
On January 10, 1997, the Partnership sold the Turnersville System to an
unaffiliated party for a sales price of $84,500,000. The Partnership
distributed $25,000,000 (or approximately $313 per each $1,000 invested in the
Partnership) of the sale proceeds to its limited partners, and, as required
under the terms of the Partnership's credit facility, approximately $52,500,000
of the sale proceeds were used to repay a portion of the Partnership's
indebtedness. Because the $25,000,000 distribution to the limited partners did
not return 125 percent of the amount initially contributed by the limited
partners, the General Partner did not receive a distribution from the proceeds
of the sale of the Turnersville System. The Jones Group, Ltd., a subsidiary of
the General Partner, received a brokerage fee of $2,112,500, representing 2.5
percent of the sales price, for acting as a broker in this transaction. The
balance of the proceeds will be used by the Partnership for ongoing working
capital. Because the sale of the Turnersville System did not represent a sale
of all or substantially all of the Partnership's assets, no vote of the limited
partners of the Partnership was required to approve this sale.
On March 12, 1997, the Partnership entered into an asset purchase
agreement to sell the Central Illinois System to an unaffiliated party for a
sales price of $20,100,000, subject to customary closing adjustments. The
closing of this sale is subject to a number of conditions, including obtaining
necessary governmental and other third party consents and the expiration or
termination of the waiting period specified in the Hart-Scott-Rodino Antitrust
Improvements Act of 1976 and the rules and regulations thereunder. Closing is
expected to occur during the second half of 1997. Upon the consummation of the
proposed sale of the Central Illinois System, the Partnership will repay
$10,050,000 of the then-outstanding balance of its credit facility, and a
brokerage fee to The Jones Group, Ltd. totaling approximately $502,500, and then
the Partnership will distribute the net sale proceeds of approximately
$9,547,500 to its limited partners. This distribution will give the
Partnership's limited partners an approximate return of $119 per $1,000 invested
in the Partnership. Because limited partners have not received total
distributions equal to 125 percent of the capital initially contributed to the
Partnership by the limited partners, the General Partner will not receive any of
the proceeds from the Central Illinois System's sale. Taking into account the
distribution made on the sale of the Turnersville System and the anticipated
distribution to be made on the sale of the Central Illinois System in 1997, the
limited partners should receive a total of $432 for each $1,000 invested in the
Partnership.
For the three months ended March 31, 1997, capital expenditures totaled
approximately $1,117,000 during the first three months of 1997. Approximately
56 percent of the expenditures related to construction of service drops to
subscribers' homes. Approximately 28 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 on hand and cash generated
from operations. Budgeted capital expenditures for the remainder of 1997 are
approximately $6,600,000. Approximately 45 percent of the total capital
expenditures will be used for new plant construction in all of the Partnership's
systems. Approximately 29 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 remaining
systems. Funding for the improvements is expected to come from cash on hand,
cash generated from operations, and, if necessary, borrowings under its new
credit facility. As a result of the pending sale of the Central Illinois
System, remaining budgeted capital expenditures for the Central Illinois System
for 1997 will be only for various enhancements necessary to maintain the value
of the Central Illinois System until it is sold. Depending upon the timing of
the closing of the sale of the Central Illinois System, the Partnership likely
will make only the portion of
9
<PAGE>
budgeted capital expenditures scheduled to be made during the Partnership's
continued ownership of the Central Illinois System.
Ameritech, which provides telephone service in a multi-state region
including Illinois, has begun providing cable television service in Naperville,
Illinois, a community currently served by the Naperville System. This
competition is having a negative effect on the Naperville System's revenues,
cash flow and fair market value. It could also have a negative impact on the
Partnership's ability to sell the Naperville System. The General Partner is
taking prudent steps necessary to meet this competition from Ameritech and, to
the extent possible, to safeguard the value of the Naperville System. These
steps include a judicial challenge to the terms on which the franchise was
issued to Ameritech. Litigation is currently pending in federal court against
both the City of Naperville and Ameritech and includes claims by the City of
Naperville against the Partnership.
In December 1996, the Partnership's $80,000,000 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, to amend the then-existing
amortization schedule and to increase the facility to $84,700,000. Upon the
sale of the Turnersville System and as required under the terms of the
Partnership's amended credit facility, $52,500,000 of the sale proceeds were
used to repay a portion of the then-outstanding balance of the credit facility,
leaving $32,200,000 outstanding under the facility. During March 1997, the
Partnership entered into a new $37,500,000 revolving credit facility. The
Partnership borrowed $32,300,000 on the new credit facility to pay off the old
credit facility, leaving $5,200,000 for future borrowings. The new credit
facility expires on September 30, 2000, at which time the then-outstanding
balance is payable in full. Interest on the new credit facility's outstanding
balance is at the Partnership's option of the London Interbank Offered Rate plus
.875 percent to 1.375 percent, the Certificate of Deposit Rate plus 1.0 percent
to 1.5 percent or the Base Rate plus 0 percent to .375 percent. The effective
interest rates on amounts outstanding as of March 31, 1997 and 1996 were 7.14
percent and 6.66 percent, respectively.
The General Partner believes that the Partnership has sufficient sources
of capital available from cash on hand, cash generated from operations and
borrowings under its credit facility to meet its anticipated 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 the
Venture, accounted for under the equity method, decreased by $161,132 compared
to the December 31, 1996 balance. This decrease represents the Partnership's
proportionate share of losses generated by the Venture during the first quarter
of 1997.
The Venture-
For the three months ended March 31, 1997, the Venture generated net cash
from operating activities totaling $1,118,673, which is available to fund
capital expenditures and non-operating costs. During the first three months of
1997, capital expenditures in the Venture-owned Broward County System totaled
approximately $911,000. Approximately 45 percent of these expenditures related
to service drops to homes. Approximately 33 percent of these expenditures
related to new plant construction. The remainder of the expenditures was for
various enhancements in the Broward County System. Funding for these
expenditures was provided by cash on hand and cash generated from operations.
Anticipated capital expenditures for the remainder of 1997 are approximately
$3,000,000. Approximately 43 percent will relate to service drops to homes.
Approximately 38 percent will relate to new plant construction. The remainder
of the anticipated expenditures is for various enhancements in the Broward
County System. These 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 begin to reduce quarterly until December 31,
2003, when the amount available will be zero. At March 31, 1997, the balance
outstanding was $41,503,000, leaving $997,000 available for future borrowings.
Interest is at the Venture's option of the Prime Rate plus 1/4 percent, LIBOR
plus 1-1/4 percent or the CD Rate plus 1-3/8 percent. The effective interest
rates on amounts outstanding as of March 31, 1997 and 1996 were 6.77 percent and
6.63 percent, respectively.
The General Partner believes that the Venture has sufficient sources of
capital from cash on hand, cash generated from operations and available
borrowings under its credit facility to service its current needs.
10
<PAGE>
RESULTS OF OPERATIONS
- ---------------------
The Partnership-
Revenues of the Partnership decreased $3,685,320, or approximately 32
percent, to $7,770,411 for the first quarter of 1997 from $11,455,731 for the
first quarter of 1996. This decrease was a result of the sale of the
Turnersville System. Disregarding the effect of the sale of the Turnersville
System, revenues would have increased $45,053, or approximately 1 percent, to
$7,317,700 for the three months ended March 31, 1997 from $7,272,647 for the
comparable 1996 period. Basic service rate increases accounted for
approximately 84 percent of the increase. The increase in revenues would have
been greater but for the reduction in subscribers due to competition from
Ameritech. No other individual factor was significant to the increase in
revenues.
Operating expenses consist primarily of costs associated with the
operation and 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 marketing expenses.
Operating expenses decreased $2,427,442, or approximately 35 percent, to
$4,525,488 for the quarter ended March 31, 1997 from $6,952,930 for the quarter
ended March 31, 1996. This decrease was a result of the sale of the
Turnersville System. Disregarding the effect of the Turnersville System sale,
operating expenses decreased $191,793, or approximately 4 percent, to $4,394,119
for the three months ended March 31, 1997 from $4,585,912 for the comparable
1996 period. Operating expenses represented 60 percent of revenue in 1997
compared to 63 percent of revenue in 1996. This decrease was primarily due to
decreases in personnel expenses.
The cable television industry generally measures the financial
performance of a cable television system in terms of operating cash flow
(revenues less operating expenses). 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 cash flow
decreased $1,257,878, or approximately 28 percent, to $3,244,923 for the three
months ended March 31, 1997 from $4,502,801 for the similar period in 1996.
This decrease was a result of the sale of the Turnersville System. Disregarding
the effect of the Turnersville System sale, operating cash flow increased
$236,846, or approximately 9 percent, to $2,923,581 in 1997 from $2,686,735 in
1996. This increase is due to the increase in revenues and decrease in
operating expenses.
Management fees and allocated overhead from the General Partner decreased
$435,991, or approximately 32 percent, to $915,785 for the three month period
ended March 31, 1997 from $1,351,776 for the three month period ended March 31,
1996. This decrease was a result of the sale of the Turnersville System.
Disregarding the effect of the Turnersville System sale, management fees and
allocated overhead from the General Partner increased $5,851, or approximately 1
percent, to $869,245 in 1997 from $863,394 in 1996. This increase was primarily
due to an increase in revenues, upon which such management fees and allocations
are based, and the timing of certain expenses allocated from the General
Partner.
Depreciation and amortization expense decreased $847,572, or
approximately 23 percent, to $2,822,180 for the three month period ended March
31, 1997 from $3,669,752 for the three month period ended March 31, 1996. This
decrease was a result of the sale of the Turnersville System. Disregarding the
effect of the Turnersville System sale, depreciation and amortization expense
decreased $51,613, or approximately 2 percent, to $2,721,693 in 1997 from
$2,773,306 in 1996. This decrease was due to maturation of the Partnership's
asset base.
Operating loss decreased $25,685, or approximately 5 percent, to $493,042
for the three month period ended March 31, 1997 from $518,727 for the three
month period ended March 31, 1996. Disregarding the effect of the Turnersville
System sale, operating loss decreased $282,608, or approximately 30 percent, to
$667,357 in 1997 from $949,965 in 1996 primarily due to the increase in revenues
and the decreases in operating expenses and depreciation and amortization
expense exceeding the increase in management fees and allocated overhead from
the General Partner.
Interest expense decreased $843,878, or approximately 58 percent, to
$617,003 for the three months ended March 31, 1997 from $1,460,881 for the
comparable 1996 period. This decrease was primarily due to lower outstanding
11
<PAGE>
balances on interest bearing obligations in 1997. A portion of the proceeds
from the sale of the Turnersville System was used to reduce the Partnership's
debt.
The Partnership recognized a gain of $62,923,951 related to the sale of
the Turnersville System in January 1997. No similar gain was recognized in
1996.
The Partnership reported income before equity in net loss of cable
television joint venture of $60,608,259 in 1997 compared to a loss of $1,985,422
in 1996. This change was primarily due to the sale of the Turnersville System.
In addition to the systems owned exclusively by it, the Partnership owns
a 27 percent interest in the Venture.
The Venture-
Revenues of the Venture's Broward County System increased $583,140, or
approximately 9 percent, to $6,844,105 for the three months ended March 31,
1997, from $6,260,965 for the comparable 1996 period. Basic service rate
increases accounted for approximately 30 percent of the increase in revenues.
The number of basic subscribers totaled 52,042 at March 31, 1997 compared to
50,965 at March 31, 1996, an increase of 1,077, or approximately 2 percent.
This increase in basic subscribers accounted for approximately 14 percent of the
increase in revenues. An increase in advertising activity accounted for
approximately 27 percent of the increase in revenues. No other individual
factor significantly affected the increase in revenues.
Operating expenses increased $318,038, or approximately 9 percent, to
$3,833,754 for the three months ended March 31, 1997 from $3,515,716 for the
comparable 1996 period. Operating expenses represented approximately 56 percent
of revenue for both 1997 and 1996. This increase in operating expenses was due
primarily to increases in programming fees and advertising expenses. No other
individual factor significantly affected the increase in operating expenses.
Operating cash flow increased $265,102, or approximately 10 percent, to
$3,010,351 for the three months ended March 31, 1997 from $2,745,249 for the
comparable 1996 period due to the increase in revenues exceeding the increase in
operating expenses.
Management fees and allocated overhead from Jones Intercable, Inc.
increased $77,788, or approximately 11 percent, to $813,632 for the three months
ended March 31, 1997 from $735,844 for the comparable 1996 period. This
increase was primarily due to the increase in revenues, upon which such
management fees and allocations are based, and the timing of certain expenses
allocated from Jones Intercable, Inc.
Depreciation and amortization expense increased $60,336, or approximately
3 percent, to $2,121,717 for the three months ended March 31, 1997 from
$2,061,381 for the comparable 1996 period. This increase was attributable to
capital additions to the Venture's asset base.
For the three months ended March 31, 1997, the Venture had operating
income of $75,002 compared to an operating loss of $51,976 for the three months
ended March 31, 1996. This change was due to the increase in revenues exceeding
the increases in operating expenses, depreciation and amortization expenses and
management fees and allocated overhead from Jones Intercable, Inc.
Interest expense decreased $98,034, or approximately 12 percent, to
$703,657 for the three months ended March 31, 1997 from $801,691 for the
comparable 1996 period due to lower outstanding balances on interest bearing
obligations.
Net loss decreased $224,593, or approximately 27 percent, to $594,584 for
the three months ended March 31, 1997 from $819,177 for the comparable 1996
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
Report on Form 8-K dated January 10, 1997 reports that:
On January 10, 1997, Cable TV Fund 14-A, Ltd. sold the cable
television system serving the areas in and around Turnersville, New
Jersey to an unaffiliated party for a sales price totaling approximately
$84,500,000, subject to closing adjustments.
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, 1997
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 4,507,261
<SECURITIES> 0
<RECEIVABLES> 538,877
<ALLOWANCES> (156,144)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 94,876,548
<DEPRECIATION> (52,551,453)
<TOTAL-ASSETS> 60,912,118
<CURRENT-LIABILITIES> 1,654,667
<BONDS> 32,802,350
0
0
<COMMON> 0
<OTHER-SE> 26,455,101
<TOTAL-LIABILITY-AND-EQUITY> 60,912,118
<SALES> 0
<TOTAL-REVENUES> 7,770,411
<CGS> 0
<TOTAL-COSTS> 8,263,453
<OTHER-EXPENSES> (61,718,304)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 617,003
<INCOME-PRETAX> 60,447,127
<INCOME-TAX> 0
<INCOME-CONTINUING> 60,447,127
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 60,447,127
<EPS-PRIMARY> 373.10
<EPS-DILUTED> 373.10
</TABLE>
