<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 June 30, 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>
June 30, December 31,
ASSETS 1995 1994
------ -------------- --------------
<S> <C> <C>
CASH $ 615,905 $ 648,379
TRADE RECEIVABLES, less allowance for doubtful
receivables of $122,906 and $118,967 at June 30,
1995 and December 31, 1994, respectively 1,008,929 944,373
INVESTMENT IN CABLE TELEVISION PROPERTIES:
Property, plant and equipment, at cost 88,898,426 85,658,550
Less- accumulated depreciation (40,592,384) (37,569,000)
-------------- --------------
48,306,042 48,089,550
Franchise costs, net of accumulated amortization of
$46,711,056 and $43,864,245 at June 30, 1995
and December 31, 1994, respectively 39,219,742 42,066,552
Subscriber lists, net of accumulated amortization of
$14,638,763 and $13,916,352 at June 30, 1995
and December 31, 1994, respectively 2,884,176 3,606,588
Costs in excess of interests in net assets
purchased, net of accumulated amortization of
$4,917,475 and $4,572,555 at June 30, 1995
and December 31, 1994, respectively 22,669,086 23,014,006
-------------- --------------
Total investment in cable television properties 113,079,046 116,776,696
DEPOSITS, PREPAID EXPENSES AND DEFERRED CHARGES 416,440 498,309
-------------- --------------
Total assets $ 115,120,320 $ 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>
June 30, December 31,
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) 1995 1994
------------------------------------------- ------------- -------------
<S> <C> <C>
LIABILITIES:
Debt $ 56,401,878 $ 57,376,558
Accounts payable-
Trade 58,142 62,146
General Partner 1,788,673 297,956
Deferred brokerage fee 920,000 920,000
Accrued liabilities 1,577,084 1,954,453
Subscriber prepayments 595,432 582,203
------------- -------------
Total liabilities 61,341,209 61,193,316
------------- -------------
MINORITY INTEREST IN CABLE TELEVISION
JOINT VENTURE 5,341,064 5,883,075
------------- -------------
PARTNERS' CAPITAL (DEFICIT):
General Partner-
Contributed capital 1,000 1,000
Accumulated deficit (642,715) (609,182)
------------- -------------
(641,715) (608,182)
------------- -------------
Limited Partners-
Net contributed capital (261,353 units outstanding at
June 30, 1995 and December 31, 1994) 112,127,301 112,127,301
Accumulated deficit (63,047,539) (59,727,753)
------------- -------------
49,079,762 52,399,548
------------- -------------
Total liabilities and
partners' capital (deficit) $ 115,120,320 $ 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 For the Six Months Ended
June 30, June 30,
1995 1994 1995 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
REVENUES $ 8,486,420 $ 7,941,145 $ 16,974,163 $ 15,858,641
COSTS AND EXPENSES:
Operating expenses 4,653,568 4,490,049 9,500,217 9,007,121
Management fees and allocated overhead
from General Partner 990,725 985,378 2,057,437 1,988,600
Depreciation and amortization 3,789,489 3,749,423 6,975,237 7,526,268
------------- ------------- ------------- -------------
OPERATING LOSS (947,362) (1,283,705) (1,558,728) (2,663,348)
------------- ------------- ------------- -------------
OTHER INCOME (EXPENSE):
Interest expense (1,211,210) (858,102) (2,340,239) (1,628,020)
Other, net 1,874 (48,580) 3,637 (37,630)
------------- ------------- ------------- -------------
Total other income (expense), net (1,209,336) (906,682) (2,336,602) (1,665,650)
------------- ------------- ------------- -------------
CONSOLIDATED LOSS (2,156,698) (2,190,387) (3,895,330) (4,328,998)
MINORITY INTEREST IN
CONSOLIDATED LOSS 357,483 350,075 542,011 656,796
------------- ------------- ------------- -------------
NET LOSS $ (1,799,215) $ (1,840,312) $ (3,353,319) $ (3,672,202)
============= ============= ============= =============
ALLOCATION OF NET LOSS:
General Partner $ (17,992) $ (18,403) $ (33,533) $ (36,722)
============= ============= ============= =============
Limited Partners $ (1,781,223) $ (1,821,909) $ (3,319,786) $ (3,635,480)
============= ============= ============= =============
NET LOSS PER LIMITED
PARTNERSHIP UNIT $ (6.81) $ (6.97) $ (12.70) $ (13.91)
============= ============= ============= =============
WEIGHTED AVERAGE NUMBER
OF LIMITED PARTNERSHIP
UNITS OUTSTANDING 261,353 261,353 261,353 261,353
============= ============= ============= =============
</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 Six Months Ended
June 30,
1995 1994
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (3,353,319) $ (3,672,202)
Adjustments to reconcile net loss to net cash provided by
operating activities:
Depreciation and amortization 6,975,237 7,526,268
Amortization of interest rate protection contract 58,794 54,356
Minority interest in consolidated net loss (542,011) (656,796)
Decrease (increase) in trade receivables (64,556) 310,332
Increase in deposits, prepaid expenses and deferred charges (14,636) (336,469)
Increase (decrease) in advances from General Partner 1,490,717 (29,182)
Increase (decrease) in accounts payable, accrued liabilities and
subscriber prepayments (368,144) 183,699
------------ ------------
Net cash provided by operating activities 4,182,082 3,380,006
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment, net (3,239,876) (2,273,514)
------------ ------------
Net cash used in investing activities (3,239,876) (2,273,514)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings 1,017,609 200,000
Repayment of debt (1,992,289) (704,741)
------------ ------------
Net cash used in financing activities (974,680) (504,741)
------------ ------------
Increase (decrease) in cash (32,474) 601,751
Cash, beginning of period 648,379 410,238
------------ ------------
Cash, end of period $ 615,905 $ 1,011,989
============ ============
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ 2,322,688 $ 1,451,133
============ ============
</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 June 30, 1995 and December 31, 1994 and its Statements of
Operations for the three and six month periods ended June 30, 1995 and 1994 and
its Statements of Cash Flows for the six month periods ended June 30, 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 and six month periods ended June 30, 1995 were
$424,321 and $848,708, respectively, as compared to $397,057 and $792,932,
respectively, for the similar 1994 periods.
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 expenses are allocated based on
the pro rata relationship of the Partnership's revenues to the 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 and
the Venture for allocated overhead and administrative expenses for the three and
six month periods ended June 30, 1995 were $566,404 and $1,208,729,
respectively, as compared to $588,321 and $1,195,668, respectively, for the
similar 1994 periods.
6
<PAGE> 7
(3) Financial information regarding the Venture is presented below.
UNAUDITED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, 1995 December 31, 1994
------------- -----------------
ASSETS
------
<S> <C> <C>
Cash and accounts receivable $ 1,009,519 $ 856,159
Investment in cable television properties 63,202,202 65,314,914
Other assets 371,632 426,387
------------- -------------
Total assets $ 64,583,353 $ 66,597,460
============= =============
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
Debt $ 41,111,748 $ 42,271,921
Payables and accrued liabilities 3,407,683 2,261,576
Partners' contributed capital 70,000,000 70,000,000
Accumulated deficit (49,936,078) (47,936,037)
------------- -------------
Total liabilities and partners' capital $ 64,583,353 $ 66,597,460
============= =============
</TABLE>
UNAUDITED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the Three Months Ended For the Six Months Ended
June 30, June 30,
----------------------------------- -----------------------------------
1995 1994 1995 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues $ 5,767,265 $ 5,478,181 $ 11,693,152 $ 10,973,921
Operating expenses (3,165,205) (3,136,788) (6,435,781) (6,197,201)
Management fees and allocated overhead
from General Partner (673,011) (674,876) (1,411,596) (1,363,167)
Depreciation and amortization (2,349,922) (2,286,350) (4,096,103) (4,590,370)
------------- ------------- ------------- -------------
Operating loss (420,873) (619,833) (250,328) (1,176,817)
Interest expense (899,365) (639,272) (1,752,085) (1,215,522)
Other, net 1,113 (32,687) 2,372 (31,264)
------------- ------------- ------------- -------------
Net loss $ (1,319,125) $ (1,291,792) $ (2,000,041) $ (2,423,603)
============= ============= ============= =============
</TABLE>
Management fees paid to the General Partner by the Venture totaled
$288,364 and $584,658, respectively, for the three and six month periods ended
June 30, 1995, as compared to $273,909 and $548,696, respectively, for the
similar 1994 periods. Reimbursements for overhead and administrative expenses
paid to the General Partner by the Venture totaled $384,647 and $826,938,
respectively, for the three and six month periods ended June 30, 1995, as
compared to $400,967 and $814,471 for the similar 1994 periods.
7
<PAGE> 8
CABLE TV FUND 14-B, LTD.
(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 six months ended June 30, 1995, the Venture generated net cash
from operating activities totaling $3,209,430, which is available to fund
capital expenditures and non-operating costs. During the first six months of
1995, capital expenditures in the Venture-owned Broward County System totaled
approximately $1,900,000. Approximately 30 percent of these expenditures related
to new plant construction. Approximately 23 percent of these expenditures
related to service drops to homes. Rebuild of the cable plant accounted for
approximately 12 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
$1,300,000. Approximately 30 percent will relate to service drops to homes.
Approximately 26 percent will relate to new plant construction. Approximately 14
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.
The balance outstanding on the Venture's term loan at June 30, 1995
was $40,950,468. 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. The Venture paid
$585,000 in principal installments during the second quarter and a total of
$1,170,000 during the six months ended June 30, 1995. Installments due during
the remainder of 1995 total $1,170,000. 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 June 30, 1995 and 1994 were 7.64 percent and 6.0 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 six months ended June 30, 1995, the Partnership generated net
cash from operating activities totaling $972,652, which is available to fund
capital expenditures and non-operating costs. The Partnership expended
approximately $1,300,000 on capital additions in its wholly-owned Surfside,
South Carolina and Little Rock, California systems during the first six months
of 1995. New plant construction accounted for approximately 20 percent and
service drops to homes accounted for approximately 15 percent of these
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 $700,000. Approximately 35 percent is
designated for plant construction in both of the Partnership's systems. Service
drops to homes are expected to account for approximately 33 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 June 30, 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 June 30, 1995,
$8,500,000 was outstanding on this term loan. The Partnership paid $375,000 in
principal installments during the second quarter and a total of $750,000 during
the six months ended June 30, 1995. The General Partner intends to renegotiate
the credit facilities 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 June 30, 1995 and 1994 were 7.01
percent and 5.89 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.
Assuming the General Partner is able to renegotiate the Partnership's
existing credit facilities to extend the repayment schedules beyond year end,
the General Partner believes that the Partnership has sufficient sources of
capital from cash on hand and cash generated from operations to service its
presently-anticipated needs.
9
<PAGE> 10
RESULTS OF OPERATIONS
The results of operations for the Partnership are summarized in below:
<TABLE>
<CAPTION>
For the Three Months Ended June 30, 1995
Partnership Venture
Owned Owned Consolidated
------------ ------------ ------------
<S> <C> <C> <C>
Revenues $ 2,719,155 $ 5,767,265 $ 8,486,420
Operating expenses 1,488,363 3,165,205 4,653,568
Management fees and allocated
overhead from General Partner 317,714 673,011 990,725
Depreciation and amortization 1,439,567 2,349,922 3,789,489
------------ ------------ ------------
Operating loss $ (526,489) $ (420,873) $ (947,362)
------------ ------------ ------------
Interest expense $ (311,845) $ (899,365) $ (1,211,210)
Consolidated loss before minority interest $ (837,573) $ (1,319,125) $ (2,156,698)
Minority interest in consolidated loss $ - $ 357,483 $ 357,483
Net loss $ (837,573) $ (961,642) $ (1,799,215)
</TABLE>
<TABLE>
<CAPTION>
For the Three Months Ended June 30, 1994
Partnership Venture
Owned Owned Consolidated
------------ ------------ ------------
<S> <C> <C> <C>
Revenues $ 2,462,964 $ 5,478,181 $ 7,941,145
Operating expenses 1,353,261 3,136,788 4,490,049
Management fees and allocated
overhead from General Partner 310,502 674,876 985,378
Depreciation and amortization 1,463,073 2,286,350 3,749,423
------------ ------------ ------------
Operating loss $ (663,872) $ (619,833) $ (1,283,705)
------------ ------------ ------------
Interest expense $ (218,830) $ (639,272) $ (858,102)
Consolidated loss before minority interest $ (898,595) $ (1,291,792) $ (2,190,387)
Minority interest in consolidated loss $ - $ 350,075 $ 350,075
Net loss $ (898,595) $ (941,717) $ (1,840,312)
</TABLE>
10
<PAGE> 11
<TABLE>
<CAPTION>
For the Six Months Ended June 30, 1995
Partnership Venture
Owned Owned Consolidated
------------ ------------ ------------
<S> <C> <C> <C>
Revenues $ 5,281,011 $ 11,693,152 $ 16,974,163
Operating expenses 3,064,436 6,435,781 9,500,217
Management fees and allocated
overhead from General Partner 645,841 1,411,596 2,057,437
Depreciation and amortization 2,879,134 4,096,103 6,975,237
------------ ------------ ------------
Operating loss $ (1,308,400) $ (250,328) $ (1,558,728)
------------ ------------ ------------
Interest expense $ (588,154) $ (1,752,085) $ (2,340,239)
Consolidated loss before minority interest $ (1,895,289) $ (2,000,041) $ (3,895,330)
Minority interest in consolidated loss $ - $ 542,011 $ 542,011
Net loss $ (1,895,289) $ (1,458,030) $ (3,353,319)
</TABLE>
<TABLE>
<CAPTION>
For the Six Months Ended June 30, 1994
Partnership Venture
Owned Owned Consolidated
------------ ------------ ------------
<S> <C> <C> <C>
Revenues $ 4,884,720 $ 10,973,921 $ 15,858,641
Operating expenses 2,809,920 6,197,201 9,007,121
Management fees and allocated
overhead from General Partner 625,433 1,363,167 1,988,600
Depreciation and amortization 2,935,898 4,590,370 7,526,268
------------ ------------ ------------
Operating loss $ (1,486,531) $ (1,176,817) $ (2,663,348)
------------ ------------ ------------
Interest expense $ (412,498) $ (1,215,522) $ (1,628,020)
Consolidated loss before minority interest $ (1,905,395) $ (2,423,603) $ (4,328,998)
Minority interest in consolidated loss $ - $ 656,796 $ 656,796
Net loss $ (1,905,395) $ (1,766,807) $ (3,672,202)
</TABLE>
11
<PAGE> 12
The Venture
The Venture's revenues increased $289,084, or approximately 5 percent,
to $5,767,265 for the three months ended June 30, 1995 from $5,478,181 for the
three months ended June 30, 1994. Revenues for the six month periods ended June
30, 1995 and 1994 increased $719,231, or approximately 7 percent, to $11,693,152
in 1995 from $10,973,921 in 1994. The increase in revenues was due to increases
in the number of basic subscribers and premium subscriptions and advertising
sales revenues. Basic subscribers increased approximately 5 percent to 47,554 at
June 30, 1995 from 45,324 at June 30, 1994. Premium subscriptions increased
approximately 7 percent to 41,400 at June 30, 1995 from 38,691 at June 30, 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 $28,417, or approximately 1 percent, to
$3,165,205 for the three months ended June 30, 1995 from $3,136,788 for the
three months ended June 30, 1994. For the six month periods ended June 30, 1995
and 1994, operating expenses increased $238,580, or approximately 4 percent, to
$6,435,781 at June 30, 1995 from $6,197,201 at June 30, 1994. Operating expenses
represented 55 percent of revenue for both the three and six months ended June
30, 1995 compared to 57 percent of revenue for both the three and six months
ended June 30, 1994. The increases in operating expenses were due primarily to
increases in programming fees. No other individual factor was significant to the
increase in operating expenses.
Management fees and allocated overhead from the General Partner
decreased $1,865, or less than 1 percent, to $673,011 for the three months ended
June 30, 1995 from $674,876 for the three months ended June 30, 1994 due to a
decrease in allocated expenses from the General Partner. For the six month
periods ended June 30, 1995 and 1994, management fees and allocated overhead
from the General Partner increased $48,429, or approximately 3 percent, to
$1,411,596 at June 30, 1995 from $1,363,167 at June 30, 1994. This increase was
due to the increase in revenues, upon which such fees and allocations are based.
Depreciation and amortization expense increased $63,572, or
approximately 3 percent, to $2,349,922 for the three months ended June 30, 1995
from $2,286,350 for the three months ended June 30, 1994 due to capital
additions during 1995. For the six month periods ended June 30, 1995 and 1994,
depreciation and amortization expense decreased $494,267, or approximately 11
percent, to $4,096,103 at June 30, 1995 from $4,590,370 at June 30, 1994. This
decrease was due to the maturation of the Venture's intangible asset base.
In the Broward County System, operating loss decreased $198,960, or
approximately 32 percent, to $420,873 for the three month period ended June 30,
1995 from $619,833 for the comparable period in 1994. This operating loss
decrease was due to the increase in revenues exceeding the increases in
depreciation and amortization expense, operating expenses and management fees
and allocated overhead from the General Partner. For the six months ended June
30, 1995 and 1994, operating loss decreased $926,489, or approximately 79
percent, to $250,328 at June 30, 1995 from $1,176,817 at June 30, 1994. This
decrease in operating loss was due to the increase in revenues and 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 $262,532, or
approximately 16 percent, to $1,929,049 for the three months ended June 30, 1995
from $1,666,517 for the three months ended June 30, 1994. For the six month
periods ended June 30, 1995 and 1994, operating income before depreciation and
amortization increased $432,222, or approximately 13 percent, to $3,845,775 at
June 30, 1995 from $3,413,553 at June 30, 1994. 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 $260,093, or approximately 41 percent, to
$899,365 for the three months ended June 30, 1995 from $639,272 for the three
months ended June 30, 1994. For the six month periods ended June 30, 1995 and
1994 interest expense increased $536,563, or approximately 44 percent, to
$1,752,085 at June 30, 1995 from $1,215,522 at June 30, 1994. These increases
were primarily due to higher effective interest rates on interest bearing
obligations. Net loss of the Venture increased $27,333, or approximately 2
percent, to $1,319,125 for the three months ended June 30, 1995 from $1,291,792
for the three months ended June 30, 1994. For the six month periods ended June
30, 1995 and 1994, net loss
12
<PAGE> 13
decreased $423,562, or approximately 17 percent, to $2,000,041 at June 30, 1995
from $2,423,603 at June 30, 1994. These losses are the result of the factors
discussed above and are expected to continue in the future.
The Partnership
Revenues in the Partnership's wholly owned cable television systems
increased $256,191, or approximately 10 percent, to $2,719,155 for the three
months ended June 30, 1995 from $2,462,964 for the three months ended June 30,
1994. For the six months ended June 30, 1995 and 1994, revenues increased
$396,291, or approximately 8 percent, to $5,281,011 in 1995 from $4,884,720 in
1994. The increases in revenue were due primarily to increases in the number of
basic subscribers and premium subscriptions of approximately 6 percent and 5
percent, respectively, and basic rate adjustments. Basic subscribers increased
to 25,297 at June 30, 1995 from 23,864 at June 30, 1994. Premium subscriptions
increased to 28,831 at June 30, 1995 from 27,341 at June 30, 1994. The increases
in the number of basic subscribers and premium subscriptions accounted for
approximately 36 percent and 50 percent, respectively, of the increase in
revenues for the three and six month periods ended June 30, 1995. Basic rate
adjustments accounted for approximately 35 percent and 25 percent,
respectively, of the increase in revenues for the three and six month periods
ended June 30, 1995. No other individual 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 for the three month periods increased $135,102, or
approximately 10 percent, to $1,488,363 at June 30, 1995 from $1,353,261 at June
30, 1994. For the six month periods ended June 30, 1995 and 1994, operating
expenses increased $254,516, or approximately 9 percent, to $3,064,436 at June
30, 1995 from $2,809,920 at June 30, 1994. Operating expenses represented 55
percent and 58 percent, respectively, of revenue for the three and six month
periods ended June 30, 1995, compared to 55 percent and 57 percent,
respectively, in 1994. These increases were 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 $7,212, or approximately 2 percent, to $317,714 at June 30, 1995 from
$310,502 at June 30, 1994. For the six month periods ended June 30, 1995 and
1994, management fees and allocated overhead from the General Partner increased
$20,408, or approximately 3 percent, to $645,841 at June 30, 1995 from $625,433
at June 30, 1994. These increases were due to the increase in revenues, upon
which such fees and allocations are based.
Depreciation and amortization expense for the three month periods
decreased $23,506, or approximately 2 percent, to $1,439,567 at June 30, 1995
from $1,463,073 at June 30, 1994. For the six month periods ended June 30, 1995
and 1994, depreciation and amortization expense decreased $56,764, or
approximately 2 percent, to $2,879,134 at June 30, 1995 from $2,935,898 at June
30, 1994. These decreases were attributable to the maturation of the
Partnership's tangible asset base.
Operating loss decreased $137,383, or approximately 21 percent, to
$526,489 at June 30, 1995 from $663,872 for the three months ended June 30,
1994. For the six month periods ended June 30, 1995 and 1994, operating loss
decreased $178,131, or approximately 12 percent, to $1,308,400 at June 30, 1995
from $1,486,531 at June 30, 1994. These decreases were 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 $113,877, or approximately 14 percent, to $913,078 for the three
months ended 1995 from $799,201 for the three months ended June 30, 1994. For
the six month periods ended June 30, 1995 and 1994, operating income before
depreciation and amortization increased $121,367, or approximately 8 percent, to
$1,570,734 in 1995 from $1,449,367 in 1994. These increases were 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 $93,015, or approximately 43 percent, to
$311,845 for three months ended June 30, 1995 from $218,830 for the three months
ended June 30, 1994. For the six month periods ended June 30, 1995 and 1994,
interest expense increased $175,656, or approximately 43 percent, to $588,154 at
June 30, 1995 from $412,498 at June 30, 1994. These increases were primarily due
to higher effective interest rates on interest bearing obligations. Net loss
decreased $61,022, or approximately 7 percent, to $837,573 for the three months
ended June 30, 1995 from $898,595 for the three
13
<PAGE> 14
months ended June 30, 1994. For the six month periods ended June 30, 1995 and
1994, net loss decreased $10,106, or less than 1 percent, to $1,895,289 at June
30, 1995 from $1,905,395 at June 30, 1994. These losses are the result of the
factors discussed above and are expected to continue in the future.
14
<PAGE> 15
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
15
<PAGE> 16
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, LTD.
BY: JONES INTERCABLE, INC.
General Partner
By:/s/ Kevin P. Coyle
--------------------------------
Kevin P. Coyle
Group Vice President/Finance
(Principal Financial Officer)
Dated: August 14, 1995
16
<PAGE> 17
EXHIBIT INDEX
Exhibit No. Exhibit Description Page
----------- ------------------- ----
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 615,905
<SECURITIES> 0
<RECEIVABLES> 1,008,929
<ALLOWANCES> (122,906)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 88,898,426
<DEPRECIATION> (40,592,384)
<TOTAL-ASSETS> 115,120,320
<CURRENT-LIABILITIES> 4,939,331
<BONDS> 56,401,878
<COMMON> 0
0
0
<OTHER-SE> 54,420,826
<TOTAL-LIABILITY-AND-EQUITY> 115,120,320
<SALES> 0
<TOTAL-REVENUES> 16,974,163
<CGS> 0
<TOTAL-COSTS> 18,532,891
<OTHER-EXPENSES> (3,637)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,340,239
<INCOME-PRETAX> (3,353,319)
<INCOME-TAX> 0
<INCOME-CONTINUING> (3,353,319)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,353,319)
<EPS-PRIMARY> (12.70)
<EPS-DILUTED> (12.70)
</TABLE>
