<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[x] Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended June 30, 2000
[ ] 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: 0-15714
JONES CABLE INCOME FUND 1-C, LTD.
--------------------------------------------------------------------------------
Exact name of registrant as specified in charter
Colorado #84-1010419
--------------------------------------------------------------------------------
State of organization I.R.S. employer I.D. #
c/o Comcast Corporation
1500 Market Street, Philadelphia, PA 19102-2148
-----------------------------------------------
Address of principal executive office
(215) 665-1700
-----------------------------
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>
JONES CABLE INCOME FUND 1-C, LTD.
(A Limited Partnership)
UNAUDITED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
ASSETS 2000 1999
------ ------------------ -------------------
<S> <C> <C>
Cash $ 6,290,222 $ 7,033,894
Proceeds from sale in interest-bearing account 520,836 509,375
------------------ -------------------
Total assets $ 6,811,058 $ 7,543,269
================== ===================
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
LIABILITIES:
Accrued distribution to limited partners $ - $ 2,700,000
Accrued distribution to Venture Partner 888,000 2,500,000
Advances from affiliates 4,304,384 734,773
------------------ -------------------
Total liabilities 5,192,384 5,934,773
------------------ -------------------
MINORITY INTEREST IN JOINT VENTURE 249,321 249,321
------------------ -------------------
PARTNER'S CAPITAL:
General Partner-
Contributed capital 1,000 1,000
Distributions (113,443) (113,443)
Accumulated earnings 112,443 112,443
------------------ -------------------
- -
------------------ -------------------
Limited Partners-
Net contributed capital (85,059 units outstanding
at June 30, 2000 and December 31, 1999) 34,909,262 34,909,262
Distributions (47,879,705) (47,879,705)
Accumulated earnings 14,339,796 14,329,618
------------------ -------------------
1,369,353 1,359,175
------------------ -------------------
Total liabilities and partners' capital $ 6,811,058 $ 7,543,269
================== ===================
</TABLE>
The accompanying notes to unaudited consolidated financial statements
are an integral part of these unaudited consolidated balance sheets.
2
<PAGE>
JONES CABLE INCOME FUND 1-C, LTD.
---------------------------------
(A Limited Partnership)
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
-----------------------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended For the Six Months Ended
June 30, June 30,
----------------------------------- --------------------------------------
2000 1999 2000 1999
----------------- ---------------- ----------------- -------------------
<S> <C> <C> <C> <C>
REVENUES $ - $ 587,663 $ - $ 1,195,013
COSTS AND EXPENSES:
Operating expenses - 353,486 - 725,418
Management fees and allocated
overhead from Jones Intercable - 54,691 - 128,483
Depreciation and amortization - 198,520 - 397,044
----------------- ---------------- ----------------- -------------------
OPERATING LOSS - (19,034) - (55,932)
----------------- ---------------- ----------------- -------------------
OTHER INCOME (EXPENSE):
Interest expense (1,725) (30,192) (1,725) (80,766)
Interest income 97,418 51 114,957 15,165
Other, net (51,026) 575,884 (103,054) 521,367
----------------- ---------------- ----------------- -------------------
Total other income
(expense), net 44,667 545,743 10,178 455,766
----------------- ---------------- ----------------- -------------------
CONSOLIDATED INCOME 44,667 526,709 10,178 399,834
MINORITY INTEREST IN
CONSOLIDATED INCOME - (209,470) - (159,012)
----------------- ---------------- ----------------- -------------------
NET INCOME $ 44,667 $ 317,239 $ 10,178 $ 240,822
================= ================ ================= ===================
ALLOCATION OF NET INCOME:
General Partner $ - $ 3,172 $ - $ 2,408
================= ================ ================= ===================
Limited Partners $ 44,667 $ 314,067 $ 10,178 $ 238,414
================= ================ ================= ===================
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 0.53 $ 3.69 $ 0.12 $ 2.80
================= ================ ================= ===================
WEIGHTED AVERAGE NUMBER
OF LIMITED PARTNERSHIP
UNITS OUTSTANDING 85,059 85,059 85,059 85,059
================= ================ ================= ===================
</TABLE>
The accompanying notes to unaudited consolidated financial statements
are an integral part of these unaudited consolidated statements.
3
<PAGE>
JONES CABLE INCOME FUND 1-C, LTD.
---------------------------------
(A Limited Partnership)
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
-----------------------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended
June 30,
----------------------------------------------
2000 1999
------------------ -------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 10,178 $ 240,822
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation and amortization - 397,044
Minority interest in consolidated income - 159,012
Decrease in trade receivables, net - 216
Increase in escrow proceeds (11,461) -
Decrease in deposits, prepaid expenses
and deferred charges - 323,977
Decrease in advances from affiliates (742,389) (1,026,129)
Increase in accounts payable and
accrued liabilities and subscriber prepayments - 31,922
------------------ -------------------
Net cash provided by (used in)
operating activities (743,672) 126,864
------------------ -------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment, net - (120,710)
------------------ -------------------
Net cash used in investing activities - (120,710)
------------------ -------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of debt - (7,380)
Advances from affiliates 2,700,000 -
Distribution to limited partners (2,700,000) -
------------------ -------------------
Net cash used in financing activities - (7,380)
------------------ -------------------
Decrease in cash (743,672) (1,226)
Cash, beginning of period 7,033,894 118,938
------------------ -------------------
Cash, end of period $ 6,290,222 $ 117,712
================== ===================
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ 36,244 $ 81,699
================== ===================
</TABLE>
The accompanying notes to unaudited consolidated financial statements
are an integral part of these unaudited consolidated statements.
4
<PAGE>
JONES CABLE INCOME FUND 1-C, LTD.
---------------------------------
(A LIMITED PARTNERSHIP)
NOTES TO UNAUDITED CONSOLIDATED 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 complete 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 Jones Cable Income Fund 1-
C, Ltd. (the "Partnership") at June 30, 2000 and December 31, 1999, its
Statements of Operations for the three and six month periods ended June 30, 2000
and 1999 and its Statements of Cash Flows for the six month periods ended June
30, 2000 and 1999. Certain prior period amounts have been reclassified to
conform to the 2000 presentation.
The accompanying consolidated financial statements include 100 percent of
the accounts of the Partnership and those of Jones Cable Income Fund 1-B/C
Venture (the "Venture") reduced by the 40 percent minority interest in the
Venture owned by Jones Cable Income Fund 1-B, Ltd. ("Fund 1-B"). All
interpartnership accounts and transactions have been eliminated. Neither the
Partnership nor the Venture currently own any cable television systems. The
Partnership and the Venture are expected to be dissolved in 2000.
On April 7, 1999, Comcast Corporation ("Comcast") completed the acquisition
of a controlling interest in Jones Intercable, Inc. ("Jones Intercable"), the
Partnership's general partner until March 2, 2000. In December 1999, Comcast
and Jones Intercable entered into a definitive merger agreement pursuant to
which Comcast agreed to acquire all of the outstanding shares of Jones
Intercable not yet owned by Comcast. On March 2, 2000, Jones Intercable was
merged with and into Comcast JOIN Holdings, Inc., a wholly owned subsidiary of
Comcast. As a result of this transaction, Jones Intercable no longer exists and
Comcast JOIN Holdings, Inc. continued as the surviving corporation of the
merger. On July 28, 2000, Comcast JOIN Holdings, Inc. was merged with and into
Comcast Cable Communications, Inc., ("Comcast Cable"), another wholly owned
subsidiary of Comcast. Comcast Cable is now the general partner of the
Partnership. References in these Notes to "the General Partner" refer to
Comcast Cable. The General Partner shares corporate offices with Comcast at
1500 Market Street, Philadelphia, Pennsylvania 19102-2148.
(2) On July 30, 1999, the Venture sold the Myrtle Creek System to an
unaffiliated party for a sales price of $9,614,208. From the sale proceeds, the
Venture repaid the outstanding balance on its credit facility of $2,400,000,
paid a $240,355 brokerage fee to The Intercable Group, Ltd., a subsidiary of
Jones Intercable, representing 2.5 percent of the sales price, for acting as a
broker in the transaction, settled working capital adjustments, and deposited
$500,000 into an interest-bearing indemnity escrow account. The remaining sale
proceeds of $6,300,000 were distributed 60 percent to the Partnership and 40
percent to Fund 1-B. From the Partnership's $3,800,000 portion of this amount,
the Partnership retained $1,100,000 to cover its administrative expenses and the
balance was distributed in January 2000 to the Partnership's limited partners of
record as of the July 30, 1999 closing date of the sale of the Myrtle Creek
System. The $2,700,000 distributed to the Partnership's limited partners from
the sale of the Myrtle Creek System resulted in a distribution to limited
partners of $32 for each $500 limited partnership interest, or $64 for each
$1,000 invested in the Partnership.
For a period of one year following the closing date, $500,000 of the sale
proceeds remained in escrow as security for the Venture's agreement to indemnify
the buyer under the asset purchase agreement. Amounts remaining from this
indemnity escrow account plus interest earned on the escrowed funds were
returned to the Venture in early August 2000 and the Venture intends to
distribute all of its cash to its constituent partners prior to its dissolution.
5
<PAGE>
(3) The Partnership reimburses its general partner for certain administrative
expenses. These expenses represent the salaries and related benefits paid for
corporate personnel. Such personnel provide administrative, accounting, tax,
legal and investor relations services to the Partnership. Such services, and
their related costs, are necessary to the administration of the Partnership
until it is dissolved. Such costs were charged to operating costs during the
periods that the cable television systems were in operation. Subsequent to the
sale of the final cable television system, such costs were charged to other
expense. Reimbursements made by the Partnership to its general partner for
administrative expenses during the three and six month periods ended June 30,
2000 were $11,683 and $29,196, respectively. Reimbursements by the Venture to
its general partner for administrative expenses during the three and six month
periods ended June 30, 1999 were $25,308 and $68,732, respectively, of which
$15,243 and $41,397, respectively, were attributed to the Partnership's 60
percent interest in the Venture.
6
<PAGE>
JONES CABLE INCOME FUND 1-C, LTD.
---------------------------------
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
FINANCIAL CONDITION
-------------------
The Partnership owns a 60 percent interest in the Venture and Fund 1-B owns
a 40 percent interest in the Venture. The accompanying financial statements
include 100 percent of the accounts of the Partnership and those of the Venture
reduced by Fund 1-B's 40 percent minority interest in the Venture.
On July 30, 1999, the Venture sold the Myrtle Creek System to an
unaffiliated party for a sales price of $9,614,208. From the sale proceeds, the
Venture repaid all of its indebtedness, paid a brokerage fee, settled working
capital adjustments and deposited $500,000 into an interest-bearing indemnity
escrow account. The remaining sale proceeds of $6,300,000 were distributed 60
percent to the Partnership and 40 percent to Fund 1-B. From the Partnership's
$3,800,000 portion of this amount, the Partnership retained $1,100,000 to cover
its administrative expenses and the balance was distributed in January 2000 to
the Partnership's limited partners of record as of the July 30, 1999 closing
date of the sale of the Myrtle Creek System. The $2,700,000 distributed to the
Partnership's limited partners from the sale of the Myrtle Creek System resulted
in a distribution to limited partners of $32 for each $500 limited partnership
interest, or $64 for each $1,000 invested in the Partnership.
For a period of one year following the closing date, $500,000 of the sale
proceeds remained in escrow as security for the Venture's agreement to indemnify
the buyer under the asset purchase agreement. Amounts remaining from this
indemnity escrow account plus interest earned on the escrowed funds were
returned to the Venture in early August 2000 and the Venture intends to
distribute all of its cash to its constituent partners prior to its dissolution.
The Venture and the Partnership are expected to be dissolved in 2000. The
Venture intends to distribute all of its cash to its constituent partners prior
to its dissolution and the Partnership expects to make a final distribution of
its cash on hand to limited partners prior to its dissolution.
RESULTS OF OPERATIONS
---------------------
Neither the Partnership nor the Venture currently own any cable television
systems; therefore, a discussion of results of operations would not be
meaningful. Interest income during the first six months of 2000 totaling
$114,957 was earned on the cash balance on hand. Other expense of $103,054
incurred in the first six months of 2000 related to various costs associated
with the administration of the Partnership.
7
<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
8
<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.
JONES CABLE INCOME FUND 1-C, LTD.
BY: COMCAST CABLE COMMUNICATIONS, INC.
General Partner
By: /S/ Lawrence J. Salva
-------------------------------------------
Lawrence J. Salva
Senior Vice President
(Principal Accounting Officer)
Dated: August 11, 2000
9
