<PAGE>
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________
FORM 11-K
ANNUAL REPORT
____________________
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
____________________
For the Fiscal Year Ended December 31, 1998
_____________________
JONES INTERCABLE, INC. ET AL PROFIT SHARING/RETIREMENT PLAN
Commission File No. 33-52813
______________________
Jones Intercable, Inc. et al Profit Sharing/Retirement Plan
9697 East Mineral Avenue
Englewood, CO 80112
(303) 705-3420
(Name of issuer of securities held pursuant to the plan and address of its
principal executive office)
================================================================================
<PAGE>
JONES INTERCABLE, INC. ET AL
PROFIT SHARING/RETIREMENT PLAN
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
AS OF DECEMBER 31, 1998 AND 1997
TOGETHER WITH REPORT OF INDEPENDENT
PUBLIC ACCOUNTANTS
<PAGE>
JONES INTERCABLE, INC. ET AL
----------------------------
PROFIT SHARING/RETIREMENT PLAN
------------------------------
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
-----------------------------------------------
DECEMBER 31, 1998 AND 1997
--------------------------
TABLE OF CONTENTS
-----------------
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS 1
FINANCIAL STATEMENTS:
Statement of Net Assets Available for Benefits with Fund
Information as of December 31, 1998 2
Statement of Net Assets Available for Benefits with Fund
Information as of December 31, 1997 3
Statement of Changes in Net Assets Available for Benefits
with Fund Information For the Year Ended December 31, 1998 4
NOTES TO FINANCIAL STATEMENTS 5-9
SUPPLEMENTAL SCHEDULES:
Schedule I: Item 27(a) Schedule of Assets Held for Investment
Purposes as of December 31, 1998 10
Schedule II: Item 27(b) Schedule of Loans or Fixed Income
Obligations in Default as of December 31, 1998 11-17
Schedule III: Item 27(d) Schedule of Reportable Transactions for
the Year Ended December 31, 1998 18-19
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS 20
SIGNATURE PAGE 21
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Administrative Committee of the
JONES INTERCABLE, INC. et al PROFIT SHARING/RETIREMENT PLAN:
We have audited the accompanying statements of net assets available for benefits
of the JONES INTERCABLE, INC. et al PROFIT SHARING/RETIREMENT PLAN (the "Plan")
as of December 31, 1998 and 1997, and the related statement of changes in net
assets available for benefits for the year ended December 31, 1998. These
financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 1998 and 1997, and the changes in net assets available for benefits
for the year ended December 31, 1998, in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental Schedule of Assets Held
for Investment Purposes as of December 31, 1998 (Schedule I), Schedule of Loans
or Fixed Income Obligations in Default as of December 31, 1998 (Schedule II),
and Schedule of Reportable Transactions for the year ended December 31, 1998
(Schedule III) are presented for the purpose of additional analysis and are not
a required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. These supplemental schedules are the responsibility of the Plan's
management. The fund information in the statements of net assets available for
benefits and the statement of changes in net assets available for benefits is
presented for purposes of additional analysis rather than to present the net
assets available for benefits and changes in net assets available for benefits
of each fund. The supplemental schedules and fund information have been
subjected to the auditing procedures applied in our audits of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
Denver, Colorado,
May 28, 1999.
- 1 -
<PAGE>
JONES INTERCABLE, INC. ET AL
----------------------------
PROFIT SHARING/RETIREMENT PLAN
------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
----------------------------------------------
WITH FUND INFORMATION
---------------------
AS OF DECEMBER 31, 1998
-----------------------
<TABLE>
<CAPTION>
CIGNA
CIGNA Stock JIC Class A Fidelity
Guaranteed Market Common Growth Founders Fidelity
Long Term Index Stock Opportunities Balanced Contrafund
Account Account Account Account Account Account
-------------- -------------- ------------- -------------- ------------- -------------
ASSETS:
Investments-
<S> <C> <C> <C> <C> <C> <C>
Pooled separate accounts $ - $16,955,299 $ - $6,872,872 $2,515,634 $2,792,568
Unallocated insurance
contracts 20,097,871 - - - - -
JIC Class A Common Stock - - 3,907,680 - - -
Participant loans - - - - - -
----------- ----------- ---------- ---------- ---------- ----------
Total investments 20,097,871 16,955,299 3,907,680 6,872,872 2,515,634 2,792,568
----------- ----------- ---------- ---------- ---------- ----------
Contributions receivable 91,271 79,749 21,980 51,291 19,961 21,276
----------- ----------- ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE FOR
BENEFITS $20,189,142 $17,035,048 $3,929,660 $6,924,163 $2,535,595 $2,813,844
=========== =========== ========== ========== ========== ==========
<CAPTION>
INVESCO Janus
Dynamics Worldwide Participant
Account Account Loans Total
------------- ------------- ---------------- -------------
ASSETS:
Investments-
<S> <C> <C> <C> <C>
Pooled separate accounts $645,417 $2,176,633 $ - $31,958,423
Unallocated insurance
contracts - - - 20,097,871
JIC Class A Common Stock - - - 3,907,680
Participant loans - - 2,814,480 2,814,480
-------- ---------- ---------- -----------
Total investments 645,417 2,176,633 2,814,480 58,778,454
-------- ---------- ---------- -----------
Contributions receivable 7,846 23,783 - 317,157
-------- ---------- ---------- -----------
NET ASSETS AVAILABLE FOR
BENEFITS $653,263 $2,200,416 $2,814,480 $59,095,611
======== ========== ========== ===========
</TABLE>
The accompanying notes to financial statements are an integral part of this
statement.
- 2 -
<PAGE>
JONES INTERCABLE, INC. ET AL
----------------------------
PROFIT SHARING/RETIREMENT PLAN
------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
----------------------------------------------
WITH FUND INFORMATION
---------------------
AS OF DECEMBER 31, 1997
-----------------------
<TABLE>
<CAPTION>
Warburg
CIGNA Pincus
CIGNA Stock CIGNA JIC Class A Fidelity Growth and
Guaranteed Market Balanced Common Growth Income
Long Term Index Fund Stock Opportunities Fund
Account Account Account Account Account Account
------------ ----------- ----------- ------------ ------------- -----------
ASSETS:
Investments-
<S> <C> <C> <C> <C> <C> <C>
Pooled separate accounts $ - $13,744,722 $2,024,734 $ - $5,175,340 $1,401,590
Unallocated insurance
contracts 18,846,620 - - - - -
JIC Class A Common Stock - - - 1,761,943 - -
Participant loans - - - - - -
----------- ----------- ---------- ---------- ---------- ----------
Total investments 18,846,620 13,744,722 2,024,734 1,761,943 5,175,340 1,401,590
----------- ----------- ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE FOR
BENEFITS $18,846,620 $13,744,722 $2,024,734 $1,761,943 $5,175,340 $1,401,590
=========== =========== ========== ========== ========== ==========
<CAPTION>
Founders Fidelity INVESCO Janus
Balanced Contrafund Dynamics Worldwide Participant
Account Account Account Account Loans Total
------------ ----------- ----------- ------------ --------- ----------
ASSETS:
Investments-
<S> <C> <C> <C> <C> <C> <C>
Pooled separate accounts $376,818 $553,287 $148,890 $688,746 $ - $24,114,127
Unallocated insurance
contracts - - - - - 18,846,620
JIC Class A Common Stock - - - - - 1,761,943
Participant loans - - - - 2,774,272 2,774,272
-------- -------- -------- -------- ---------- -----------
Total investments 376,818 553,287 148,890 688,746 2,774,272 47,496,962
-------- -------- -------- -------- ---------- -----------
NET ASSETS AVAILABLE FOR
BENEFITS $376,818 $553,287 $148,890 $688,746 $2,774,272 $47,496,962
======== ======== ======== ======== ========== ===========
</TABLE>
The accompanying notes to financial statements are an integral part of this
statement.
- 3 -
<PAGE>
JONES INTERCABLE, INC. ET AL
----------------------------
PROFIT SHARING/RETIREMENT PLAN
------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
---------------------------------------------------------
WITH FUND INFORMATION
---------------------
FOR THE YEAR ENDED DECEMBER 31, 1998
------------------------------------
<TABLE>
<CAPTION>
Warburg
CIGNA Pincus
CIGNA Stock CIGNA JIC Class A Fidelity Growth and
Guaranteed Market Balanced Common Growth Income
Long Term Index Fund Stock Opportunities Fund
Account Account Account Account Account Account
----------- ------------ ------------- ----------- --------------- -------------
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Contributions-
<S> <C> <C> <C> <C> <C> <C>
Employer $ 801,739 $ 709,273 $ 107,534 $ 193,406 $ 456,442 $ 86,481
Employee 1,800,107 1,748,801 237,930 343,073 1,189,817 207,717
Rollover 125,672 203,404 1,131 43,241 63,358 538
Loan repayment 438,552 292,762 36,547 34,155 105,603 18,570
----------- ----------- ----------- ---------- ----------- -----------
Total contributions 3,166,070 2,954,240 383,142 613,875 1,815,220 313,306
----------- ----------- ----------- ---------- ----------- -----------
Investment income-
Interest and dividends 1,168,189 61,745 5,267 7,077 20,074 3,542
Net appreciation in
fair value of
investments - 3,678,861 276,111 1,839,879 1,313,478 112,686
----------- ----------- ----------- ---------- ----------- -----------
Total investment
income 1,168,189 3,740,606 281,378 1,846,956 1,333,552 116,228
----------- ----------- ----------- ---------- ----------- -----------
Total additions 4,334,259 6,694,846 664,520 2,460,831 3,148,772 429,534
----------- ----------- ----------- ---------- ----------- -----------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Distributions and
withdrawals (2,874,880) (1,897,701) (304,158) (296,878) (986,261) (119,969)
Loan issues (667,966) (417,095) (51,032) (94,618) (133,907) (40,677)
----------- ----------- ----------- ---------- ----------- -----------
Total deductions (3,542,846) (2,314,796) (355,190) (391,496) (1,120,168) (160,646)
----------- ----------- ----------- ---------- ----------- -----------
NET TRANSFERS BETWEEN FUNDS 551,109 (1,089,724) (2,334,064) 98,382 (279,781) (1,670,478)
Increase (decrease) in
net assets available for
benefits 1,342,522 3,290,326 (2,024,734) 2,167,717 1,748,823 (1,401,590)
----------- ----------- ----------- ---------- ----------- -----------
NET ASSETS AVAILABLE FOR
BENEFITS,
December 31, 1997 18,846,620 13,744,722 2,024,734 1,761,943 5,175,340 1,401,590
----------- ----------- ----------- ---------- ----------- -----------
NET ASSETS AVAILABLE FOR
BENEFITS,
December 31, 1998
$20,189,142 $17,035,048 $ - $3,929,660 $ 6,924,163 $ -
=========== =========== =========== ========== =========== ===========
<CAPTION>
Founders Fidelity INVESCO Janus
Balanced Contrafund Dynamics Worldwide Participant
Account Account Account Account Loans Total
-------------- ------------ ----------- ------------ ------------ ------------
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Contributions-
<S> <C> <C> <C> <C> <C> <C>
Employer $ 65,650 $ 88,197 $ 55,881 $ 183,127 $ - $ 2,747,730
Employee 168,042 236,887 158,721 473,713 - 6,564,808
Rollover 21,364 37,583 23,709 52,062 - 572,062
Loan repayment 15,450 21,454 17,180 39,205 (1,019,478) -
---------- ---------- --------- ---------- ----------- -----------
Total contributions 270,506 384,121 255,491 748,107 (1,019,478) 9,884,600
---------- ---------- --------- ---------- ----------- -----------
Investment income-
Interest income 3,027 5,100 2,939 10,275 - 1,287,235
Net appreciation in
fair value of
investments 85,383 358,795 74,642 259,901 - 7,999,736
---------- ---------- --------- ---------- ----------- -----------
Total investment
income 88,410 363,895 77,581 270,176 - 9,286,971
---------- ---------- --------- ---------- ----------- -----------
Total additions 358,916 748,016 333,072 1,018,283 (1,019,478) 19,171,571
---------- ---------- --------- ---------- ----------- -----------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Distributions and
withdrawals (155,837) (169,189) (101,102) (218,319) (448,628) (7,572,922)
Loan issues (18,511) (20,613) (16,461) (47,434) 1,508,314 -
---------- ---------- --------- ---------- ----------- -----------
Total deductions (174,348) (189,802) (117,563) (265,753) 1,059,686 (7,572,922)
---------- ---------- --------- ---------- ----------- -----------
NET TRANSFERS BETWEEN FUNDS 1,974,209 1,702,343 288,864 759,140 - -
Increase (decrease) in
net assets available for
benefits 2,158,777 2,260,557 504,373 1,511,670 40,208 11,598,649
---------- ---------- --------- ---------- ----------- -----------
NET ASSETS AVAILABLE FOR
BENEFITS,
December 31, 1997 376,818 553,287 148,890 688,746 2,774,272 47,496,962
---------- ---------- --------- ---------- ----------- -----------
NET ASSETS AVAILABLE FOR
BENEFITS,
December 31, 1998
$2,535,595 $2,813,844 $ 653,263 $2,200,416 $ 2,814,480 $59,095,611
========== ========== ========= ========== =========== ===========
</TABLE>
The accompanying notes to financial statements are an integral part of this
statement.
- 4 -
<PAGE>
JONES INTERCABLE, INC. ET AL
----------------------------
PROFIT SHARING/RETIREMENT PLAN
------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
DECEMBER 31, 1998 AND 1997
--------------------------
(1) DESCRIPTION OF THE PLAN
-----------------------
The following description of the Jones Intercable, Inc. et al Profit
Sharing/Retirement Plan (the "Plan") provides only general information.
Participants should refer to the plan document for a more complete description
of the Plan's provisions.
On November 1, 1983, Jones Intercable, Inc. ("JIC") established the Plan. The
Plan trustee is CG Trust Company, a wholly owned subsidiary of Connecticut
General Life Insurance Company ("Connecticut General"). The Plan is a defined
contribution plan with 3,160 and 3,154 participants at December 31, 1998 and
1997, respectively. The Plan is open to eligible employees of JIC and its
subsidiaries as well as to eligible employees of an affiliate of JIC, Jones
International, Ltd., and its subsidiaries (collectively referred to as the
"Employer"). Effective April 1, 1999, the account balances of eligible
employees of Jones International, Ltd. were transferred into the Jones
International, Ltd. Retirement Savings Plan (the "Jones International Plan").
These participants became participants of the Jones International Plan as of the
effective date. An employee is eligible to participate in the Plan upon
completion of six months of service, as defined in the plan document.
The Plan was established under the provisions of Section 401(a) of the Internal
Revenue Code ("IRC"), and includes a qualified deferred arrangement as described
in Section 401(k) of the IRC, for the benefit of eligible employees. The Plan
is subject to the provisions of the Employee Retirement Income Security Act of
1974 ("ERISA"). Benefits under the Plan are not guaranteed by the Pension
Benefit Guaranty Corporation.
Participants may enter into a Salary Reduction Agreement in which they elect to
defer any whole percentage from 1% to 16% of their compensation, as defined in
the Plan ($10 minimum per pay period). The Employer matches 50% of the employee
contributions up to a 6% participant deferral, with a minimum match of $20 per
employee per pay period. Total deferrals on behalf of any participant are
limited under the IRC ($10,000 in 1998). Total annual additions on behalf of
any participant are limited to the lesser of 25% of compensation or $30,000.
Annual additions are defined as employee contributions, employer contributions
and forfeitures.
- 5 -
<PAGE>
Participant accounts are credited with (1) employee deferral contributions, (2)
Employer matching contributions and (3) Plan earnings or losses. Earnings from
investment funds are allocated according to the plan document.
Each participant has the right to direct the investment by Connecticut General
of all amounts allocated to the separate accounts of the participant under the
Plan to the following investment accounts: CIGNA Guaranteed Long Term Account,
CIGNA Stock Market Index Account, JIC Class A Common Stock Account, Fidelity
Growth Opportunities Account, Founders Balanced Account, Fidelity Contrafund
Account, INVESCO Dynamics Account and Janus Worldwide Account. During 1998,
CIGNA Balanced Fund Account and Warburg Pincus Growth and Income Fund Account
were eliminated as investment options. Balances in a participant's account may
be transferred between the various accounts four times during a calendar year.
Participants are immediately 100% vested in both their own contributions and the
Employer matching contributions. The entire participant account balance becomes
payable upon termination, death, retirement or disability and can be received in
a lump sum or installments, within certain limitations. Participants who have
attained age 59 1/2 may withdraw all or a portion of their account balance. In
addition, hardship withdrawals are available under certain circumstances.
In accordance with the Plan, participants are entitled to borrow funds from
their account under certain circumstances as allowed by the Internal Revenue
Service ("IRS"). The loans are limited to the lesser of $50,000 or 1/2 of the
amount in a participant's account. The loans bear interest at prime plus 1/2%,
and the term is not to exceed five years, unless the loan is used to acquire,
construct, reconstruct or substantially rehabilitate a dwelling which is used as
the principal residence of the participant, in which case the maximum term is
ten years. Each loan shall be collateralized by the assignment of the
borrower's collateral promissory note for the amount of the loan. In the event
that a distribution is due to the participant borrower, the unpaid loan balance
together with any interest due thereon, shall become due and payable and the
Plan Administrator shall first satisfy any and all due indebtedness from the
participant's account before making payment to the participant or the
participant's beneficiary, if applicable. Approximately $1,508,000 of loans
were issued during the year ended December 31, 1998. The total unpaid loan
balance outstanding was approximately $2,814,000, and $2,774,000 at December 31,
1998 and 1997, respectively.
On April 7, 1999, Comcast Corporation ("Comcast") completed the acquisition of a
controlling interest in JIC. As a result of this transaction, JIC is now a
publicly-traded subsidiary of Comcast Cable Communications, Inc., a wholly owned
subsidiary of Comcast. Effective October 1, 1999, the Plan will be merged with
and into the Comcast Corporation Retirement-Investment Plan.
(2) SUMMARY OF ACCOUNTING POLICIES
------------------------------
Basis of Accounting
--------------------
The accompanying financial statements of the Plan are prepared using the accrual
basis of accounting. The preparation of the financial statements in conformity
with generally accepted accounting principles requires the Plan's management to
use estimates and assumptions that affect the accompanying financial statements
and disclosures. Actual results could differ from these estimates.
- 6 -
<PAGE>
Valuation of Investment Contracts
---------------------------------
Investments in the CIGNA Guaranteed Long Term Account are fully benefit-
responsive and are carried at contract value. Contract value represents
contributions made, plus interest at the contract rate and transfers, less
distributions. Under the terms of the investment contracts, the crediting
interest rate is determined semi-annually based on the insurance company's
applicable rate schedule. The average yield of the investment contracts for the
year ended December 31, 1998 was 6.25%. The average crediting interest rate for
the investment contracts held as of December 31, 1998 and 1997 was 5.85% and
6.35%, respectively. The fair value of the investment contracts held as of
December 31, 1998 and 1997 approximates contract value.
Investments and Income Recognition
----------------------------------
Investments are carried at fair value, with the exception of the CIGNA
Guaranteed Long Term Account (see above). Net appreciation/depreciation in the
fair value of investments is determined as the difference between market value
at the beginning of the year (or date purchased during the year) and selling
price or year end market value. Cost is determined based on the original cost
to acquire the asset.
Expenses
--------
All costs incurred in the administration of the Plan are paid by the Employer.
All costs associated with the purchase of JIC Class A Common Stock (i.e. broker
costs) are paid by the participants affecting the purchase.
Benefits
--------
Benefits are recorded when paid.
(3) INVESTMENT FUNDS
----------------
Participants' accounts can be invested in the following investment portfolio
accounts maintained by Connecticut General. The Plan's committee adopted a
written investment policy, and the following funds have been selected in
accordance with that policy.
CIGNA Guaranteed Long Term Account
----------------------------------
The assets in this account are primarily invested in bonds, mortgages and real
estate with fixed rates of return. Guaranteed rates of return are fixed
periodically for this account.
CIGNA Stock Market Index Account
--------------------------------
This account, a common stock fund, is a pooled account investing primarily in
S&P 500 common stocks and futures. The investment or reinvestment of such
assets is made by Connecticut General to conform the composition of the account
to the composition of the S&P 500 index.
- 7 -
<PAGE>
JIC Class A Common Stock Account
--------------------------------
This account allows participants to invest in shares of JIC Class A Common
Stock, which is publicly-traded on the NASDAQ exchange under the symbol JOINA.
Fidelity Growth Opportunities Account
-------------------------------------
This account is a Connecticut General separate account that invests wholly in
the Fidelity Growth Opportunities Fund. This fund seeks to provide capital
growth by investing primarily in common stocks and securities convertible into
common stock.
Founders Balanced Account
-------------------------
This account is a Connecticut General separate account which invests wholly in
the Founders Balanced Fund. This fund seeks current income and capital
appreciation by investing in individual securities that have the potential to
provide superior results over time.
Fidelity Contrafund Account
---------------------------
This Fidelity account is a Connecticut General separate account which invests
wholly in the Fidelity Contrafund. This fund seeks capital appreciation by
focusing on companies that are currently out of public favor.
INVESCO Dynamics Account
------------------------
This account is a Connecticut General separate account which invests wholly in
the INVESCO Dynamics Fund. This fund seeks capital appreciation through an
aggressive investment approach. The fund invests in a multitude of companies in
various industries, thus seeking to achieve better-than-average capital growth.
Janus Worldwide Account
-----------------------
This account is a Connecticut General separate account which invests wholly in
the Janus Worldwide Fund. This fund seeks long-term growth of capital in a
manner consistent with the preservation of capital by investing in foreign as
well as domestic securities.
As of December 31, 1998, there were 2,127; 1,807; 860; 1,261; 826; 798; 306; and
566 participants in the CIGNA Guaranteed Long Term Account, CIGNA Stock Market
Index Account, JIC Class A Common Stock Account, Fidelity Growth Opportunities
Account, Founders Balanced Account, Fidelity Contrafund Account, INVESCO
Dynamics Account, and Janus Worldwide Account, respectively. The total of the
eight accounts sums to a number which is greater than the number of total
participants in the Plan as participants may invest in more than one account.
Investments that represent 5% or more of the Plan's assets as of December 31,
1998 and 1997 are separately identified in the statements of net assets
available for benefits with fund information.
- 8 -
<PAGE>
(4) FEDERAL INCOME TAXES
--------------------
The Plan has received a determination letter from the IRS dated December 17,
1994 in which the IRS stated that the Plan was qualified and that the trust
established under the Plan is tax exempt. The Plan has been amended subsequent
to receiving this letter. The Plan sponsor is of the opinion that the Plan, as
amended, continues to comply in form and operation with the applicable
requirements of the IRC.
(5) RELATED PARTY TRANSACTIONS
--------------------------
Certain Plan investments are units of pooled separate accounts and unallocated
insurance contracts managed by Connecticut General. CG Trust Company is the
trustee as defined by the Plan and, therefore, a party-in-interest to the Plan.
Certain Plan investments are maintained in shares of JIC Class A Common Stock.
(6) RISKS AND UNCERTAINTIES
-----------------------
The Plan provides for various investments in pooled accounts, unallocated
insurance contracts and JIC Class A Common Stock. Investments, in general, are
subject to various risks, such as interest rate, credit and overall market
volatility risk. Due to the level of risk associated with certain investments,
including JIC Class A Common Stock, it is reasonably possible that changes in
the value of investments will occur in the near term and that such changes could
materially affect participants' account balances and the amounts reported in the
statements of changes in net assets available for benefits with fund
information. Based upon advice received from the Plan committee's investment
advisor, Global Portfolio Strategies, the fund selection complies with the
requirements of ERISA Section 404(c).
- 9 -
<PAGE>
SCHEDULE I
----------
JONES INTERCABLE, INC. ET AL
----------------------------
PROFIT SHARING/RETIREMENT PLAN
------------------------------
Item 27(a) SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
AS OF DECEMBER 31, 1998
-----------------------
<TABLE>
<CAPTION>
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest, Collateral, Current
Lessor or Similar Party Par, or Maturity Value Cost Value
- ----------------------------- ------------------------------------------------------------- --------- --------
<S> <C> <C> <C> <C>
* Connecticut General Life Insurance
Company:
CIGNA Guaranteed Long Term Account 304,552 units $20,097,872 $20,097,871
CIGNA Stock Market Index Account 271,587 units 11,157,796 16,955,299
JIC Class A Common Stock Account 109,689 units 1,941,489 3,907,680
Fidelity Growth Opportunities Account 88,298 units 4,894,342 6,872,872
Founders Balanced Account 168,391 units 2,440,578 2,515,634
Fidelity Contrafund Account 35,088 units 2,451,440 2,792,568
INVESCO Dynamics Account 29,895 units 564,822 645,417
Janus Worldwide Account 40,540 units 1,928,757 2,176,633
Participant Loans (Interest rate ranges
from 4.98% to 11.62%) - 2,814,480 2,814,480
----------- -----------
TOTAL INVESTMENTS $48,291,576 $58,778,454
=========== ===========
</TABLE>
* Represents a party-in-interest to the Plan.
- 10 -
<PAGE>
SCHEDULE II
Page 1 of 7
JONES INTERCABLE, INC. ET AL
----------------------------
PROFIT SHARING/RETIREMENT PLAN
------------------------------
ITEM 27(b) SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS IN DEFAULT
-------------------------------------------------------------------
AS OF DECEMBER 31, 1998
-----------------------
<TABLE>
<CAPTION>
Amount
Received During
Original Reporting Year Unpaid Detailed Amount Overdue
Identity and Address Amount ------------------- Balance at Description -------------------
of Obligor of Loan Principal Interest End of Year of Loan Principal Interest
- ------------------------- --------- --------- -------- ----------- ----------------------------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Employee No. 100157 $ 5,975 $910 $223 $2,641 Originated 7/7/95 $ 534 $ 95
c/o Jones Intercable Due 7/7/00
9697 East Mineral Avenue Interest Rate 9.5%
Englewood, CO 80112 Collateral is account balance
Employee No. 100190 $ 3,000 $206 $ 14 $ 571 Originated 9/22/94 $ 571 $ 15
c/o Jones Intercable Due 9/22/98
9697 East Mineral Avenue Interest Rate 8.25%
Englewood, CO 80112 Collateral is account balance
Employee No. 100327 $ 7,000 $367 $141 $6,447 Originated 9/29/97 $1,249 $124
c/o Jones Intercable Due 9/15/01
9697 East Mineral Avenue Interest Rate 9.00%
Englewood, CO 80112 Collateral is account balance
Employee No. 100529 $10,121 $337 $140 $6,265 Originated 12/31/93 $ 475 $180
c/o Jones Intercable Due 6/31/02
9697 East Mineral Avenue Interest Rate 6.50%
Englewood, CO 80112 Collateral is account balance
</TABLE>
- 11 -
<PAGE>
SCHEDULE II
Page 2 of 7
JONES INTERCABLE, INC. ET AL
----------------------------
PROFIT SHARING/RETIREMENT PLAN
------------------------------
ITEM 27(b) SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS IN DEFAULT
-------------------------------------------------------------------
AS OF DECEMBER 31, 1998
-----------------------
<TABLE>
<CAPTION>
Amount
Received During
Original Reporting Year Unpaid Detailed Amount Overdue
Identity and Address Amount ------------------- Balance at Description -------------------
of Obligor of Loan Principal Interest End of Year of Loan Principal Interest
- ------------------------- --------- --------- -------- ----------- ----------------------------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Employee No. 100592 $ 7,000 $651 $132 $ 5,504 Originated 7/24/97 $1,931 $273
c/o Jones Intercable Due 6/9/99
9697 East Mineral Avenue Interest Rate 6.50%
Englewood, CO 80112 Collateral is account balance
Employee No. 100798 $11,000 $146 $ 82 $10,854 Originated 7/27/98 $ 627 $317
c/o Jones Intercable Due 4/12/03
9697 East Mineral Avenue Interest Rate 9.00%
Englewood, CO 80112 Collateral is account balance
Employee No. 100937 $ 6,200 $262 $124 $ 5,350 Originated 4/15/97 $ 821 $335
c/o Jones Intercable Due 6/15/01
9697 East Mineral Avenue Interest Rate 9.00%
Englewood, CO 80112 Collateral is account balance
Employee No. 100951 $ 5,026 $271 $ 29 $ 1,432 Originated 5/18/94 $ 889 $ 61
c/o Jones Intercable Due 5/18/99
9697 East Mineral Avenue Interest Rate 7.25%
Englewood, CO 80112 Collateral is account balance
</TABLE>
- 12 -
<PAGE>
SCHEDULE II
Page 3 of 7
JONES INTERCABLE, INC. ET AL
----------------------------
PROFIT SHARING/RETIREMENT PLAN
------------------------------
ITEM 27(b) SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS IN DEFAULT
-------------------------------------------------------------------
AS OF DECEMBER 31, 1998
-----------------------
<TABLE>
<CAPTION>
Amount
Received During
Original Reporting Year Unpaid Detailed Amount Overdue
Identity and Address Amount ------------------- Balance at Description -------------------
of Obligor of Loan Principal Interest End of Year of Loan Principal Interest
- ------------------------- --------- --------- -------- ----------- ----------------------------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Employee No. 101300 $1,500 $ 171 $ 19 $ 544 Originated 3/19/96 $ 357 $ 22
c/o Jones Intercable Due 3/19/99
9697 East Mineral Avenue Interest Rate 8.75%
Englewood, CO 80112 Collateral is account balance
Employee No. 101383 $3,064 $ 127 $ 63 $2,731 Originated 6/13/97 $ 391 $172
c/o Jones Intercable Due 9/28/01
9697 East Mineral Avenue Interest Rate 9.00%
Englewood, CO 80112 Collateral is account balance
Employee No. 101401 $6,000 $ 96 $131 $5,778 Originated 8/1/97 $ 283 $381
c/o Jones Intercable Due 12/15/06
9697 East Mineral Avenue Interest Rate 9.00%
Englewood, CO 80112 Collateral is account balance
Employee No. 101444 $2,850 $1,063 $124 $1,787 Originated 12/3/97 $1,787 $ 45
c/o Jones Intercable Due 11/3/98
9697 East Mineral Avenue Interest Rate 9.00%
Englewood, CO 80112 Collateral is account balance
</TABLE>
- 13 -
<PAGE>
SCHEDULE II
Page 4 of 7
JONES INTERCABLE, INC. ET AL
----------------------------
PROFIT SHARING/RETIREMENT PLAN
------------------------------
ITEM 27(b) SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS IN DEFAULT
-------------------------------------------------------------------
AS OF DECEMBER 31, 1998
-----------------------
<TABLE>
<CAPTION>
Amount
Received During
Original Reporting Year Unpaid Detailed Amount Overdue
Identity and Address Amount ------------------- Balance at Description -------------------
of Obligor of Loan Principal Interest End of Year of Loan Principal Interest
- ------------------------- --------- --------- -------- ----------- ----------------------------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Employee No. 101496 $7,235 $ 50 $54 $7,185 Originated 5/7/98 $302 $316
c/o Jones Intercable Due 9/7/06
9697 East Mineral Avenue Interest Rate 9.00%
Englewood, CO 80112 Collateral is account balance
Employee No. 101509 $4,350 $413 $47 $3,937 Originated 6/3/98 $994 $ 81
c/o Jones Intercable Due 9/3/99
9697 East Mineral Avenue Interest Rate 9.00%
Englewood, CO 80112 Collateral is account balance
Employee No. 101519 $2,269 $265 $24 $ 627 Originated 12/21/95 $627 $ 19
c/o Jones Intercable Due 12/21/98
9697 East Mineral Avenue Interest Rate 9.25%
Englewood, CO 80112 Collateral is account balance
Employee No. 101595 $ 560 $ - $ - $ 541 Originated 12/31/93 $541 $ 60
c/o Jones Intercable Due 5/15/97
9697 East Mineral Avenue Interest Rate 6.54%
Englewood, CO 80112 Collateral is account balance
</TABLE>
- 14 -
<PAGE>
SCHEDULE II
Page 5 of 7
JONES INTERCABLE, INC. ET AL
----------------------------
PROFIT SHARING/RETIREMENT PLAN
------------------------------
ITEM 27(b) SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS IN DEFAULT
-------------------------------------------------------------------
AS OF DECEMBER 31, 1998
-----------------------
<TABLE>
<CAPTION>
Amount
Received During
Original Reporting Year Unpaid Detailed Amount Overdue
Identity and Address Amount ------------------- Balance at Description -------------------
of Obligor of Loan Principal Interest End of Year of Loan Principal Interest
- ------------------------- --------- --------- -------- ----------- ----------------------------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Employee No. 101633 $1,100 $ 77 $ 12 $ 418 Originated 11/21/94 $418 $ 19
c/o Jones Intercable Due 7/6/96
9697 East Mineral Avenue Interest Rate 8.25%
Englewood, CO 80112 Collateral is account balance
Employee No. 101713 $6,900 $ 4 $ 78 $6,896 Originated 4/27/98 $660 $342
c/o Jones Intercable Due 4/27/03
9697 East Mineral Avenue Interest Rate 9.00%
Englewood, CO 80112 Collateral is account balance
Employee No. 101745 $6,400 $436 $101 $2,928 Originated 3/16/95 $915 $159
c/o Jones Intercable Due 3/16/00
9697 East Mineral Avenue Interest Rate 9.50%
Englewood, CO 80112 Collateral is account balance
Employee No. 101838 $1,073 $119 $ 34 $ 954 Originated 11/4/97 $223 $ 49
c/o Jones Intercable Due 11/4/00
9697 East Mineral Avenue Interest Rate 9.00%
Englewood, CO 80112 Collateral is account balance
</TABLE>
- 15 -
<PAGE>
SCHEDULE II
Page 6 of 7
JONES INTERCABLE, INC. ET AL
----------------------------
PROFIT SHARING/RETIREMENT PLAN
------------------------------
ITEM 27(b) SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS IN DEFAULT
-------------------------------------------------------------------
AS OF DECEMBER 31, 1998
-----------------------
<TABLE>
<CAPTION>
Amount
Received During
Original Reporting Year Unpaid Detailed Amount Overdue
Identity and Address Amount ------------------- Balance at Description -------------------
of Obligor of Loan Principal Interest End of Year of Loan Principal Interest
- ------------------------- --------- --------- -------- ----------- ----------------------------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Employee No. 102018 $7,600 $ 50 $28 $7,550 Originated 3/20/98 $837 $424
c/o Jones Intercable Due 3/20/03
9697 East Mineral Avenue Interest Rate 9.00%
Englewood, CO 80112 Collateral is account balance
Employee No. 102298 $1,100 $122 $35 $ 978 Originated 11/17/97 $222 $ 57
c/o Jones Intercable Due 11/17/00
9697 East Mineral Avenue Interest Rate 9.00%
Englewood, CO 80112 Collateral is account balance
Employee No. 102328 $2,300 $543 $96 $1,533 Originated 8/5/97 $405 $ 51
c/o Jones Intercable Due 4/5/99
9697 East Mineral Avenue Interest Rate 9.00%
Englewood, CO 80112 Collateral is account balance
Employee No. 102392 $1,000 $ 43 $19 $ 841 Originated 3/7/97 $134 $ 51
c/o Jones Intercable Due 3/7/02
9697 East Mineral Avenue Interest Rate 8.75%
Englewood, CO 80112 Collateral is account balance
</TABLE>
- 16 -
<PAGE>
SCHEDULE II
Page 7 of 7
JONES INTERCABLE, INC. ET AL
----------------------------
PROFIT SHARING/RETIREMENT PLAN
------------------------------
ITEM 27(b) SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS IN DEFAULT
-------------------------------------------------------------------
AS OF DECEMBER 31, 1998
-----------------------
<TABLE>
<CAPTION>
Amount
Received During
Original Reporting Year Unpaid Detailed Amount Overdue
Identity and Address Amount ------------------- Balance at Description -------------------
of Obligor of Loan Principal Interest End of Year of Loan Principal Interest
- ------------------------- --------- --------- -------- ----------- ----------------------------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Employee No. 102995 $1,320 $137 $68 $1,130 Originated 8/7/97 $ 87 $ 36
c/o Jones Intercable Due 8/7/02
9697 East Mineral Avenue Interest Rate 9.00%
Englewood, CO 80112 Collateral is account balance
Soc. Sec. No. ###-##-#### $1,950 $ - $ - $ 478 Originated 12/31/93 $ 478 $ 12
c/o Jones Intercable Due 11/31/96
9697 East Mineral Avenue Interest Rate 6.49%
Englewood, CO 80112 Collateral is account balance
Soc. Sec. No. ###-##-#### $7,500 $109 $45 $6,141 Originated 11/13/96 $1,137 $409
c/o Jones Intercable Due 11/13/01
9697 East Mineral Avenue Interest Rate 8.75%
Englewood, CO 80112 Collateral is account balance
</TABLE>
- 17 -
<PAGE>
SCHEDULE III
Page 1 of 2
JONES INTERCABLE, INC. ET AL
----------------------------
PROFIT SHARING/RETIREMENT PLAN
------------------------------
ITEM 27(d) SCHEDULE OF REPORTABLE TRANSACTIONS (a) (b)
------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1998
------------------------------------
<TABLE>
<CAPTION>
Current
Expenses Value of
Identity of Incurred Cost Asset on
Party Number of Purchase Selling Lease With of Transaction Net
Involved Description of Asset Transactions Price Price Rental Transaction Asset Date Gain
- --------------- ----------------------- ------------- ---------- ------- -------- ----------- ----- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
*Connecticut
General
Life Insurance
Company CIGNA Guaranteed
Long Term Account 195 $8,054,065 $ - - - $8,054,065 $8,054,065 $ -
343 - 7,898,771 - - 7,898,771 7,898,771 -
CIGNA Balanced Fund
Account 85 450,651 - - - 450,651 450,651 -
133 - 2,712,266 - - 1,987,977 2,712,266 724,289
CIGNA Stock Market
Index Account 172 6,187,258 - - - 6,187,258 6,187,258 -
214 - 6,661,324 - - 4,650,544 6,661,324 2,010,780
Jones Intercable, Inc.
Class A Common
Stock Account 115 1,444,150 - - - 1,444,150 1,444,150 -
168 - 1,143,133 - - 743,514 1,143,133 399,619
Fidelity Growth
Opportunities Account 124 2,350,691 - - - 2,350,691 2,350,691 -
177 - 2,015,044 - - 1,564,036 2,015,044 451,008
Warburg Pincus Growth
and Income Fund
Account 59 541,795 - - - 541,795 541,795 -
123 - 2,022,183 - - 1,657,359 2,022,183 364,824
</TABLE>
- 18 -
<PAGE>
SCHEDULE III
Page 2 of 2
JONES INTERCABLE, INC. ET AL
----------------------------
PROFIT SHARING/RETIREMENT PLAN
------------------------------
ITEM 27(d) SCHEDULE OF REPORTABLE TRANSACTIONS (a) (b)
------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1998
------------------------------------
<TABLE>
<CAPTION>
Current
Expenses Value of
Identity of Incurred Cost Asset on
Party Number of Purchase Selling Lease With of Transaction Net
Involved Description of Asset Transactions Price Price Rental Transaction Asset Date Gain
- --------------- ----------------------- ------------- ---------- ------- -------- ----------- ----- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Founders Balanced
Account 83 $2,529,259 $ - - - $2,529,259 $2,529,259 $ -
97 - 475,196 - - 458,295 475,196 16,901
Fidelity Contrafund
Account 97 2,255,956 - - - 2,255,956 2,255,956 -
96 - 380,754 - - 357,035 380,754 23,719
Janus Worldwide
Account 156 2,136,551 - - - 2,136,551 2,136,551 -
114 - 929,890 - - 911,518 929,890 18,372
</TABLE>
* Represents a party-in-interest to the Plan.
(a) Represents transactions or a series of transactions in excess of 5% of the
fair value of Plan assets at the beginning of the Plan year.
(b) This schedule was prepared using the alternative way of reporting (iii)
series of transactions under DOL Regulation 2520.103-6 (d) (2).
- 19 -
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have duly
caused this annual report to be signed on its behalf by the undersigned hereunto
duly authorized.
Jones Intercable, Inc. et al Profit Sharing/Retirement
Plan
June 29, 1999 /s/ Joseph J. Euteneuer
-----------------------------------
Joseph J. Euteneuer
Vice President (Authorized Officer)
-21-
<PAGE>
EXHIBIT 23
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference of our report on the financial statements of Jones Intercable, Inc. et
al Profit Sharing/Retirement Plan dated May 28, 1999 included in this Form 11-K
and the Registration Statement in Form S-8 (No. 33-52813).
/s/ ARTHUR ANDERSEN LLP
Denver, Colorado,
June 28, 1999.
-20-
