<PAGE> 1
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, 1995
--------------
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 0-16200
CABLE TV FUND 14-B, LTD.
- - --------------------------------------------------------------------------------
Exact name of registrant as specified in charter
Colorado #84-1024658
- - --------------------------------------------------------------------------------
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> 2
CABLE TV FUND 14-B, LTD.
(A Limited Partnership)
UNAUDITED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
ASSETS 1995 1994
------ --------------------- --------------------
<S> <C> <C>
CASH $ 1,321,932 $ 648,379
TRADE RECEIVABLES, less allowance for
doubtful receivables of $141,868 and $118,967
at March 31, 1995 and December 31, 1994,
respectively 740,759 944,373
INVESTMENT IN CABLE TELEVISION PROPERTIES:
Property, plant and equipment, at cost 86,842,098 85,658,550
Less- accumulated depreciation (39,087,270) (37,569,000)
----------- -----------
47,754,828 48,089,550
Franchise costs, net of accumulated amortization of
$45,038,611 and $43,864,245 at March 31, 1995
and December 31, 1994, respectively 40,892,186 42,066,552
Subscriber lists, net of accumulated amortization of
$14,224,399 and $13,916,352 at March 31, 1995
and December 31, 1994, respectively 3,298,541 3,606,588
Costs in excess of interests in net assets
purchased, net of accumulated amortization of
$4,745,015 and $4,572,555 at March 31, 1995
and December 31, 1994, respectively 22,841,546 23,014,006
----------- -----------
Total investment in cable television properties 114,787,101 116,776,696
DEPOSITS, PREPAID EXPENSES AND DEFERRED CHARGES 507,910 498,309
----------- -----------
Total assets $117,357,702 $118,867,757
=========== ===========
</TABLE>
The accompanying notes to unaudited consolidated financial statements
are an integral part of these unaudited consolidated balance sheets.
2
<PAGE> 3
CABLE TV FUND 14-B, LTD.
(A Limited Partnership)
UNAUDITED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) 1995 1994
------------------------------------------- -------------------- --------------------
<S> <C> <C>
LIABILITIES:
Debt $ 57,283,136 $ 57,376,558
Accounts payable-
Trade 20,451 62,146
General Partner 1,096,877 297,956
Deferred brokerage fee 920,000 920,000
Accrued liabilities 1,481,049 1,954,453
Subscriber prepayments 620,380 582,203
----------- -----------
Total liabilities 61,421,893 61,193,316
----------- -----------
MINORITY INTEREST IN CABLE TELEVISION
JOINT VENTURE 5,698,547 5,883,075
----------- -----------
PARTNERS' CAPITAL (DEFICIT):
General Partner-
Contributed capital 1,000 1,000
Accumulated deficit (624,723) (609,182)
----------- -----------
(623,723) (608,182)
----------- -----------
Limited Partners-
Net contributed capital (261,353 units outstanding at
March 31, 1995 and December 31, 1994) 112,127,301 112,127,301
Accumulated deficit (61,266,316) (59,727,753)
----------- -----------
50,860,985 52,399,548
----------- -----------
Total liabilities and
partners' capital (deficit) $117,357,702 $118,867,757
=========== ===========
</TABLE>
The accompanying notes to unaudited consolidated financial statements
are an integral part of these unaudited consolidated balance sheets.
3
<PAGE> 4
CABLE TV FUND 14-B, LTD.
(A Limited Partnership)
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the Three Months Ended
March 31,
--------------------------------------------
1995 1994
---------------- ------------------
<S> <C> <C>
REVENUES $ 8,487,743 $ 7,917,496
COSTS AND EXPENSES:
Operating expenses 4,846,649 4,517,072
Management fees and allocated overhead from General Partner 1,066,712 1,003,222
Depreciation and amortization 3,185,748 3,788,275
---------- ----------
OPERATING LOSS (611,366) (1,391,073)
---------- ----------
OTHER INCOME (EXPENSE):
Interest expense (1,129,029) (758,488)
Other, net 1,763 10,950
---------- ----------
Total other income (expense) (1,127,266) (747,538)
---------- ----------
CONSOLIDATED LOSS (1,738,632) (2,138,611)
MINORITY INTEREST IN CONSOLIDATED LOSS 184,528 306,721
---------- ----------
NET LOSS $(1,554,104) $(1,831,890)
========== ==========
ALLOCATION OF NET LOSS:
General Partner $ (15,541) $ (18,319)
========== ==========
Limited Partners $(1,538,563) $(1,813,571)
========== ==========
NET LOSS PER LIMITED PARTNERSHIP UNIT $ (5.89) $ (6.94)
========== ==========
WEIGHTED AVERAGE NUMBER OF LIMITED
PARTNERSHIP UNITS OUTSTANDING 261,353 261,353
========== ==========
</TABLE>
The accompanying notes to unaudited consolidated financial statements
are an integral part of these unaudited consolidated statements.
4
<PAGE> 5
CABLE TV FUND 14-B, LTD.
(A Limited Partnership)
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the Three Months Ended
March 31,
---------------------------------------------
1995 1994
------------------ ------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (1,554,104) $(1,831,890)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization 3,173,142 3,776,845
Amortization of loan amendments fees 12,606 11,430
Amortization of interest rate protection contract 24,959 27,178
Minority interest in consolidated loss (184,528) (306,721)
Decrease in trade receivables 203,614 508,981
Increase in deposits, prepaid expenses and
deferred charges (47,165) (164,372)
Decrease in accounts payable, accrued liabilities
and subscriber prepayments (476,922) (118,341)
Increase (decrease) in advances from General Partner 798,921 (29,182)
----------- ----------
Net cash provided by operating activities 1,950,523 1,873,928
----------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (1,183,548) (1,134,070)
----------- ----------
Net cash used in investing activities (1,183,548) (1,134,070)
----------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings 900,000 100,000
Repayment of debt (993,422) (159,238)
----------- ----------
Net cash used in financing activities (93,422) (59,238)
----------- ----------
Increase in cash 673,553 680,620
Cash, beginning of period 648,379 410,238
----------- ----------
Cash, end of period $ 1,321,932 $ 1,090,858
=========== ==========
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ 1,111,478 $ 769,499
=========== ===========
</TABLE>
The accompanying notes to unaudited consolidated financial statements
are an integral part of these unaudited consolidated statements.
5
<PAGE> 6
CABLE TV FUND 14-B, 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 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-B, Ltd.
(the "Partnership") at March 31, 1995 and December 31, 1994 and its Statements
of Operations and Cash Flows for the three month periods ended March 31, 1995
and 1994. Results of operations for these periods are not necessarily
indicative of results to be expected for the full year.
As a result of the Partnership's ownership interest in Cable TV Fund
14-A/B Venture (the "Venture") of approximately 73 percent, the accompanying
financial statements present the Partnership's and the Venture's financial
condition and results of operations on a consolidated basis, with the ownership
interest of Cable TV Fund 14-A, Ltd. in the Venture shown as a minority
interest. The Venture owns and operates the cable television system serving
certain areas in Broward County, Florida. The Venture does not have any
ownership interest in the cable television systems serving Surfside, South
Carolina (the "Surfside System") or Little Rock, California (the "Little Rock
System"). These systems are owned 100 percent by the Partnership. All
interpartnership accounts and transactions have been eliminated. Certain prior
year amounts have been reclassified to conform to the 1995 presentation.
(2) Jones Intercable Inc., a publicly held Colorado corporation (the
"General Partner"), manages the Partnership and the Venture and receives a fee
for its services equal to five percent of the gross revenues of the Partnership
and the Venture, excluding revenues from the sale of cable television systems
or franchises. Management fees paid to the General Partner by the Partnership
and the Venture for the three month periods ended March 31, 1995 and 1994 were
$424,387 and $395,875, respectively.
The Partnership and the Venture reimburse the General Partner for
certain allocated overhead and administrative expenses. These expenses include
salaries and related benefits paid for corporate personnel, rent, data
processing services and other corporate facilities costs. Such personnel
provide engineering, marketing, accounting, administrative, legal and investor
relations services to the Partnership and the Venture. Allocations of
personnel costs are based primarily on actual time spent by employees of the
General Partner with respect to each partnership managed. Remaining overhead
costs are allocated based on revenues of the Partnership as a percentage of
total revenues of owned and managed cable television systems of the General
Partner. Systems owned by the General Partner and all other systems owned by
partnerships for which Jones Intercable, Inc. is the general partner are also
allocated a proportionate share of these expenses. The General Partner
believes that the methodology used in allocating overhead and administrative
expenses is reasonable. Reimbursements made to the General Partner by the
Partnership and the Venture for allocated overhead and administrative expenses
for the three month periods ended March 31, 1995 and 1994 were $642,325 and
$607,347, respectively.
6
<PAGE> 7
(3) Financial information regarding the Venture is presented below.
UNAUDITED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, 1995 December 31, 1994
-------------- -----------------
<S> <C> <C>
ASSETS
------
Cash and accounts receivable $ 1,175,553 $ 856,159
Investment in cable television properties 64,236,535 65,314,914
Other assets 428,906 426,387
----------- -----------
Total assets $ 65,840,994 $ 66,597,460
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
Debt $ 41,668,635 $ 42,271,921
Payables and accrued liabilities 2,789,312 2,261,576
Partners' contributed capital 70,000,000 70,000,000
Accumulated deficit (48,616,953) (47,936,037)
----------- -----------
Total liabilities and partners' capital $ 65,840,994 $ 66,597,460
=========== ===========
</TABLE>
UNAUDITED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the Three Months Ended
March 31,
--------------------------------------------
1995 1994
---------------- ------------------
<S> <C> <C>
Revenues $ 5,925,887 $ 5,495,740
Operating expenses (3,270,576) (3,060,413)
Management fees and allocated overhead from General Partner (738,585) (688,291)
Depreciation and amortization (1,746,181) (2,315,450)
----------- -----------
Operating income (loss) 170,545 (568,414)
Interest expense (852,720) (564,820)
Other, net 1,259 1,423
----------- -----------
Net loss $ (680,916) $ (1,131,811)
=========== ===========
</TABLE>
Management fees and reimbursements for overhead and administrative
expenses paid to Jones Intercable, Inc. by the Venture totalled $296,294 and
$442,291, respectively for the three month period ended March 31, 1995, and
$274,787 and $413,504, respectively, for the three month period ended March 31,
1994.
7
<PAGE> 8
CABLE TV FUND 14-B
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FINANCIAL CONDITION
The Partnership owns an approximate 73 percent interest in the
Venture. The accompanying financial statements include 100 percent of the
accounts of the Partnership and those of the Venture system, reduced by the 27
percent minority interest in the Venture.
The Venture-
For the three months ended March 31, 1995, the Venture generated net
cash from operating activities totaling $970,103, which is available to fund
capital expenditures and non-operating costs. During the first three months of
1995, capital expenditures in the Venture-owned Broward County System totaled
approximately $655,000. Approximately 41 percent of these expenditures related
to new plant construction. Approximately 33 percent of these expenditures
related to service drops to homes. Rebuild of the cable plant accounted for
approximately 18 percent of these expenditures. The remainder of the
expenditures was for various enhancements in the Broward County System. Such
expenditures were funded primarily from cash generated from operations.
Anticipated capital expenditures for the remainder of 1995 are approximately
$2,552,000. Approximately 33 percent will relate to new plant construction.
Approximately 31 percent will relate to service drops to homes. Approximately
17 percent will relate to plant rebuilds in the Broward County System. The
remainder of the anticipated expenditures is for various enhancements in the
Broward County System. These capital expenditures are expected to be funded
from cash on hand and cash generated from operations.
On December 31, 1992, the then-outstanding balance of $46,800,000 on
the Venture's revolving credit facility converted to a term loan. The balance
outstanding on the term loan at March 31, 1995 was $41,535,468. The term loan
is payable in quarterly installments which began March 31, 1993 and is payable
in full by December 31, 1999. In June 1994, the General Partner completed
negotiations to lower the level of principal payments in order to provide
liquidity for capital expenditures. Installments paid during the first quarter
of 1995 totalled $585,000. Installments due during the remainder of 1995 total
$1,755,000. Funding for these installments is expected to come from cash on
hand and cash generated from operations. Interest is at the Venture's option
of Prime plus 1/2 percent, LIBOR plus 1-1/2 percent or CD rate plus 1-5/8
percent. The effective interest rates on amounts outstanding as of March 31,
1995 and 1994 were 7.63 percent and 5.04 percent, respectively.
In January 1993, the Venture entered into an interest rate cap
agreement covering outstanding debt obligations of $25,000,000. The Venture
paid a fee of $246,250. The agreement protects the Venture from LIBOR interest
rates that exceeded 7 percent for three years from the date of the agreement.
The General Partner believes that the Venture has sufficient sources
of capital to service its presently anticipated needs from cash on hand and
cash generated from operations.
The Partnership-
For the three months ended March 31, 1995, the Partnership generated
net cash from operating activities totaling $980,420, which is available to
fund capital expenditures and non-operating costs. The Partnership expended
approximately $496,000 on capital additions in its wholly-owned Surfside, South
Carolina and Little Rock, California systems during the first quarter of 1995.
New plant construction accounted for approximately 24 percent and service drops
to homes accounted for approximately 24 percent of these expenditures.
Upgrades of the cable plant accounted for approximately 25 percent of the
expenditures. The remainder of the expenditures was for various enhancements
in the Partnership's systems. Funding for these expenditures was provided by
cash on hand and cash generated from operations. Anticipated capital
expenditures for the remainder of 1995 are approximately $1,513,000.
Approximately 25 percent is designated for plant construction in both of the
Partnership's systems. Service drops to homes are expected to account for
approximately 21 percent. The remainder of these expenditures is for various
enhancements in each of the Partnership's systems. Funding for these
improvements will be provided by cash generated from operations and borrowings
under the Partnership's credit facility.
8
<PAGE> 9
The Partnership's credit agreement had an original commitment of
$20,000,000. Such commitment consisted of a $10,000,000 reducing revolving
credit facility and a $10,000,000 term loan. The reducing revolving credit
reduced to $9,500,000 on December 31, 1993, reduced to $8,500,000 on December
31, 1994 and is payable in full on December 31, 1995. At March 31, 1995,
$6,700,000 was outstanding under this revolving credit facility, leaving
$1,800,000 available until year end for the needs of the Partnership. The
$10,000,000 term loan is payable in quarterly installments which began March
31, 1993 and the term loan matures on December 31, 1995. As of March 31, 1995,
$8,875,000 was outstanding on this term loan. Installment payments made in the
first quarter of 1995 totalled $375,000. The General Partner intends to
renegotiate the credit facility during 1995. Currently, interest on the
outstanding principal balance on each loan is at the Partnership's option of
Prime plus .20 percent, LIBOR plus 1.20 percent or CD rate plus 1.325 percent.
The effective interest rates on amounts outstanding as of March 31, 1995 and
1994 are 7.85 percent and 5.13 percent, respectively.
In January 1993, the Partnership entered into an interest rate cap
agreement covering outstanding debt obligations of $8,000,000 for a fee of
$77,600. The agreement protects the Partnership from LIBOR interest rates that
exceed 7 percent for three years from the date of the agreement.
The General Partner believes that the Partnership has sufficient
sources of capital, assuming successful renegotiation of the Partnership's
existing credit facility, to service its presently anticipated needs.
Regulation and Legislation
Congress enacted the Cable Television Consumer Protection and
Competition Act of 1992 (the "1992 Cable Act"), which became effective on
December 4, 1992. This legislation has caused significant changes to the
regulatory environment in which the cable television industry operates. The
1992 Cable Act generally imposes a greater degree of regulation on the cable
television industry. Under the 1992 Cable Act's definition of effective
competition, nearly all cable systems in the United States, including almost
all of those owned by the Partnership and Venture, are subject to rate
regulation of basic cable services. In addition, the 1992 Cable Act allows the
FCC to regulate rates for non-basic service tiers other than premium services
in response to complaints filed by franchising authorities and/or cable
subscribers. In April 1993, the FCC adopted regulations governing rates for
basic and non-basic services. The FCC's rules became effective on September 1,
1993. In compliance with these rules, the Partnership and Venture reduced
rates charged for certain regulated services effective September 1, 1993.
On February 22, 1994, however, the FCC adopted several additional rate
orders including orders which revised its earlier-announced regulatory scheme
with respect to rates and established interim cost-of-service regulations. The
FCC's February 22, 1994 regulations will generally require rate reductions,
absent a successful cost-of-service showing, of 17 percent of September 30,
1992 rates, adjusted for inflation, channel modifications, equipment costs, and
increases in programming costs. The new regulations became effective on May
15, 1994, but operators could elect to defer rate reductions to July 14, 1994,
so long as they made no changes in their rates and did not restructure service
offerings between May 15 and July 14.
The Partnership has filed cost-of-service showings for the Surfside
System and the Little Rock System and thus anticipates no further reductions in
rates in its systems. The cost-of-service showings have not yet received final
approvals from franchising authorities, however, and there can be no assurance
that the Partnership's cost-of-service showings will prevent further rate
reductions until such final approvals are received.
The Venture complied with the February 1994 benchmark regulations and
further reduced rates in the Broward County System effective July 1994.
9
<PAGE> 10
RESULTS OF OPERATIONS
The results of operations for the Partnership are summarized in the selected
financial data below:
<TABLE>
<CAPTION>
For the Three Months Ended March 31, 1995
------------------------------------------------------
Partnership Venture
Owned Owned Consolidated
--------------- --------------- ------------
<S> <C> <C> <C>
Revenues $ 2,561,856 $5,925,887 $ 8,487,743
Operating expenses $ 1,576,073 $3,270,576 $ 4,846,649
Management fees and allocated
overhead from General Partner $ 328,127 $ 738,585 $ 1,066,712
Depreciation and amortization $ 1,439,567 $1,746,181 $ 3,185,748
Operating income (loss) $ (781,911) $ 170,545 $ (611,366)
Interest expense $ (276,309) $ (852,720) $(1,129,029)
Consolidated loss $(1,057,716) $ (680,916) $(1,738,632)
Minority interest in consolidated loss $ - $ 184,528 $ 184,528
Net loss $(1,057,716) $ (496,388) $(1,554,104)
</TABLE>
Partnership owned -
<TABLE>
<CAPTION>
For the Three Months Ended March 31, 1994
------------------------------------------------------
Partnership Venture
Owned Owned Consolidated
--------------- --------------- ------------
<S> <C> <C> <C>
Revenues $ 2,421,756 $ 5,495,740 $ 7,917,496
Operating expenses $ 1,456,659 $ 3,060,413 $ 4,517,072
Management fees and allocated
overhead from General Partner $ 314,931 $ 688,291 $ 1,003,222
Depreciation and amortization $ 1,472,825 $ 2,315,450 $ 3,788,275
Operating loss $ (822,659) $ (568,414) $(1,391,073)
Interest expense $ (193,668) $ (564,820) $ (758,488)
Consolidated loss before minority interest $(1,006,800) $(1,131,811) $(2,138,611)
Minority interest in consolidated loss $ - $ 306,721 $ 306,721
Net loss $(1,006,800) $ (825,090) $(1,831,890)
</TABLE>
10
<PAGE> 11
Partnership owned-
Revenues in the Partnership's wholly owned cable television systems
increased $140,100, or approximately 6 percent, from $2,421,756 at March 31,
1994 to $2,561,856 at March 31, 1995. The increase in revenue was due
primarily to increases in the number of basic subscribers and premium
subscriptions of approximately 6 percent and 3 percent, respectively. Basic
subscribers increased from 23,179 at March 31, 1994 to 24,670 at March 31,
1995. Premium subscriptions increased from 15,663 at March 31, 1994 to 16,114
at March 31, 1995. No other factor was significant to the increase.
Operating expenses consist primarily of costs associated with the
administration of the Partnership's cable television systems. The principal
cost components are salaries paid to system personnel, programming expenses,
professional fees, subscriber billing costs, rent for leased facilities, cable
system maintenance expenses and consumer marketing expenses.
Operating expenses increased $119,414, or approximately 8 percent,
from $1,456,659 at March 31, 1994 to $1,576,073 at March 31, 1995. Operating
expenses represented 62 percent of revenue for the first quarter of 1994
compared to 63 percent for the similar period in 1995. This increase was due
to increases in programming fees and advertising sales expenses. No other
individual factor significantly affected the increase in operating expenses.
Management fees and allocated overhead from the General Partner increased
$13,196, or approximately 4 percent, from $314,931 at March 31, 1994 to
$328,127 at March 31, 1995 due to the increase in revenues, upon which such
fees and allocations are based, and an increase in allocated expenses from the
General Partner. The General Partner has experienced increases in expenses,
including personnel costs, a portion of which is allocated to the Partnership.
Depreciation and amortization expense decreased $33,258, or approximately 2
percent, from $1,472,825 at March 31, 1994 to $1,439,567 at March 31, 1995.
This decrease was attributable to the maturation of the Partnership's tangible
asset base.
Operating loss decreased $40,748, or approximately 5 percent, from
$822,659 at March 31, 1994 to $781,911 at March 31, 1995 due to the increase in
revenues and the decrease in depreciation and amortization expense exceeding
the increases in operating expenses and management fees and allocated overhead
from the General Partner. Operating income before depreciation and
amortization increased $7,490, or approximately 1 percent, from $650,166 for
the three months ended March 31, 1994 to $657,656 for the similar period in
1995. This increase was due to the increase in revenues exceeding the
increases in operating expenses and management fees and allocated overhead from
the General Partner.
Interest expense increased $82,641, or approximately 43 percent, from
$193,668 at March 31, 1994 to $276,309 at March 31, 1995 due to higher
effective interest rates on interest bearing obligations. Net loss increased
$50,916, or approximately 5 percent, from $1,006,800 at March 31, 1994 to
$1,057,716 at March 31, 1995. These losses are the result of the factors
discussed above and are expected to continue in the future.
Venture owned-
The Venture's revenues increased $430,147, or approximately 8 percent,
from $5,495,740 for the three months ended March 31, 1994 to $5,925,887 in the
first quarter of 1995. The increase in revenues was due to increases in the
number of basic subscribers and premium subscriptions, home shopping revenues,
and premium service revenues. Basic subscribers increased approximately 5
percent from 46,611 at March 31, 1994 to 48,876 at March 31, 1995. Premium
subscriptions increased approximately 9 percent from 39,157 at March 31, 1994
to 42,657 at March 31, 1995. The increase in revenues would have been greater
but for reductions in basic rates due to basic rate regulations issued by the
FCC in February 1994 with which the Venture complied effective July 1994. No
other individual factor was significant to the increase in revenues.
Operating expenses consist primarily of costs associated with the
administration of the Venture's cable television systems. The principal cost
components are salaries paid to system personnel, programming expenses,
professional fees, subscriber billing costs, rent for leased facilities, cable
system maintenance expenses and consumer marketing expenses.
Operating expenses increased $210,163, or approximately 7 percent,
from $3,060,413 at March 31, 1994 to $3,270,576 at March 31, 1995. Operating
expenses represented 56 percent of revenue for the first quarter of 1994
compared to 55 percent for the similar period in 1995. The increase in
operating expenses was due primarily to increases in programming fees and
personnel related expenses. No other individual factor was significant to the
increase in operating expenses. Management fees and allocated overhead from
the General Partner increased $50,294, or approximately 7 percent, from
$688,291 at March 31, 1994 to $738,585 at March 31, 1995 due to the increase in
revenues, upon which such fees and
11
<PAGE> 12
allocations are based, and an increase in allocated expenses from the General
Partner. The General Partner has experienced increases in expenses, including
personnel costs, a portion of which is allocated to the Venture. Depreciation
and amortization expense decreased $569,269, or approximately 25 percent, from
$2,315,450 at March 31, 1994 to $1,746,181 for the three months ended March 31,
1995. This decrease was due to the maturation of the Venture's intangible
asset base.
The Venture recorded operating income of $170,545 for the first three
months of 1995, compared to an operating loss of $568,414 in 1994, primarily
due to the decrease in depreciation and amortization expense. Operating income
before depreciation and amortization increased $169,690, or approximately 10
percent, from $1,747,036 for the three months ended March 31, 1994 to
$1,916,726 for the similar period in 1995. This increase was due to the
increase in revenues exceeding the increases in operating expenses and
management fees and allocated overhead from the General Partner.
Interest expense increased $287,900, or approximately 51 percent, from
$564,820 at March 31, 1994 to $852,720 at March 31, 1995 due to higher
effective interest rates on interest bearing obligations. Net loss of the
Venture decreased $450,895, or approximately 40 percent, from $1,131,811 at
March 31, 1994 to $680,916 at March 31, 1995. This decrease was primarily
attributed to the decrease in depreciation and amortization expense. These
losses are the result of the factors discussed above and are expected to
continue in the future.
12
<PAGE> 13
Part II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
a) Exhibits
27) Financial Data Schedule
b) Reports on Form 8-K
None
13
<PAGE> 14
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-B
BY: JONES INTERCABLE, INC.
General Partner
By:/S/ Kevin P. Coyle
--------------------------------
Kevin P. Coyle
Group Vice President/Finance
(Principal Financial Officer)
Dated: May 12, 1995
14
<PAGE> 15
INDEX TO EXHIBITS
Exhibit Description Page
- - ------- ----------- ----
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 1,321,932
<SECURITIES> 0
<RECEIVABLES> 740,759
<ALLOWANCES> (141,868)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 86,842,098
<DEPRECIATION> (39,087,270)
<TOTAL-ASSETS> 117,357,702
<CURRENT-LIABILITIES> 4,138,757
<BONDS> 57,283,136
<COMMON> 0
0
0
<OTHER-SE> 50,860,985
<TOTAL-LIABILITY-AND-EQUITY> 117,357,702
<SALES> 0
<TOTAL-REVENUES> 8,487,743
<CGS> 0
<TOTAL-COSTS> 9,099,109
<OTHER-EXPENSES> (1,763)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,129,029
<INCOME-PRETAX> (1,554,104)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,554,104)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,554,104)
<EPS-PRIMARY> 5.89
<EPS-DILUTED> 5.89
</TABLE>
