<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
FORM 10-Q
(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, 1998
------------------
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 0-17687
---------
Enstar Income/Growth Program Six-A, L.P.
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Georgia 58-1755230
- ------------------------------- ----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
10900 Wilshire Boulevard - 15th Floor
Los Angeles, California 90024
- ---------------------------------------- ----------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (310) 824-9990
----------------
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year,
if changed since last report.
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
PART I - FINANCIAL INFORMATION
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
CONDENSED BALANCE SHEETS
=================================================
<TABLE>
<CAPTION>
December 31, June 30,
1997* 1998
------------ -----------
(Unaudited)
<S> <C> <C>
ASSETS:
Cash and cash equivalents $ 659,400 $ 655,000
Accounts receivable, less allowance of $5,400 and
$6,400 for possible losses 20,000 64,600
Prepaid expenses and other assets 38,200 36,900
Property, plant and equipment, less accumulated
depreciation and amortization of $4,896,400 and $5,133,100 3,428,900 3,190,100
Franchise cost, net of accumulated
amortization of $2,500,900 and $2,627,800 1,141,500 1,024,500
Deferred loan costs and other charges, net 71,000 62,800
----------- -----------
$ 5,359,000 $ 5,033,900
=========== ===========
LIABILITIES AND PARTNERSHIP CAPITAL
-----------------------------------
LIABILITIES:
Accounts payable $ 460,200 $ 361,100
Due to affiliates 507,200 488,900
Note payable - affiliate 2,500,000 2,050,000
----------- -----------
TOTAL LIABILITIES 3,467,400 2,900,000
----------- -----------
COMMITMENTS AND CONTINGENCIES
PARTNERSHIP CAPITAL (DEFICIT):
General partners (143,700) (141,300)
Limited partners 2,035,300 2,275,200
----------- -----------
TOTAL PARTNERSHIP CAPITAL 1,891,600 2,133,900
----------- -----------
$ 5,359,000 $ 5,033,900
=========== ===========
</TABLE>
*As presented in the audited financial statements.
See accompanying notes to condensed financial statements.
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<PAGE> 3
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
CONDENSED STATEMENTS OF OPERATIONS
=================================================
<TABLE>
<CAPTION>
Unaudited
---------------------------
Three months ended
June 30,
---------------------------
1997 1998
--------- ---------
<S> <C> <C>
REVENUES $ 900,900 $ 916,800
--------- ---------
OPERATING EXPENSES:
Service costs 305,500 296,800
General and administrative expenses 130,400 107,900
General Partner management fees
and reimbursed expenses 123,900 132,600
Depreciation and amortization 218,600 208,600
--------- ---------
778,400 745,900
--------- ---------
OPERATING INCOME 122,500 170,900
--------- ---------
OTHER INCOME (EXPENSE):
Interest income 3,900 10,700
Interest expense (58,500) (60,200)
Gain on sale of cable assets -- 200
--------- ---------
(54,600) (49,300)
--------- ---------
NET INCOME $ 67,900 $ 121,600
========= =========
Net income allocated to General Partners $ 700 $ 1,200
========= =========
Net income allocated to Limited Partners $ 67,200 $ 120,400
========= =========
NET INCOME PER UNIT OF LIMITED
PARTNERSHIP INTEREST $ 0.84 $ 1.51
========= =========
AVERAGE LIMITED PARTNERSHIP
UNITS OUTSTANDING DURING PERIOD 79,818 79,818
========= =========
</TABLE>
See accompanying notes to condensed financial statements.
-3-
<PAGE> 4
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
CONDENSED STATEMENTS OF OPERATIONS
=================================================
<TABLE>
<CAPTION>
Unaudited
--------------------------------
Six months ended
June 30,
-------------------------------
1997 1998
----------- -----------
<S> <C> <C>
REVENUES $ 1,806,700 $ 1,840,400
----------- -----------
OPERATING EXPENSES:
Service costs 604,500 598,700
General and administrative expenses 232,400 216,400
General Partner management fees
and reimbursed expenses 255,100 262,600
Depreciation and amortization 467,500 418,200
----------- -----------
1,559,500 1,495,900
----------- -----------
OPERATING INCOME 247,200 344,500
----------- -----------
OTHER INCOME (EXPENSE):
Interest income 6,700 18,400
Interest expense (119,700) (120,800)
Gain on sale of cable assets 100 200
----------- -----------
(112,900) (102,200)
----------- -----------
NET INCOME $ 134,300 $ 242,300
=========== ===========
Net income allocated to General Partners $ 1,300 $ 2,400
=========== ===========
Net income allocated to Limited Partners $ 133,000 $ 239,900
=========== ===========
NET INCOME PER UNIT OF LIMITED
PARTNERSHIP INTEREST $ 1.67 $ 3.01
=========== ===========
AVERAGE LIMITED PARTNERSHIP
UNITS OUTSTANDING DURING PERIOD 79,818 79,818
=========== ===========
</TABLE>
See accompanying notes to condensed financial statements.
-4-
<PAGE> 5
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
STATEMENTS OF CASH FLOWS
=================================================
<TABLE>
<CAPTION>
Unaudited
---------------------------
Six months ended
June 30,
---------------------------
1997 1998
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 134,300 $ 242,300
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 467,500 418,200
Amortization of deferred loan costs 7,500 8,400
Gain on sale of cable assets (100) (200)
Increase (decrease) from changes in:
Accounts receivable, prepaid expenses and other assets 80,600 (43,300)
Accounts payable (61,600) (99,100)
--------- ---------
Net cash provided by operating activities 628,200 526,300
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (56,200) (48,700)
Increase in intangible assets (18,200) (11,500)
Proceeds from sale of property, plant and equipment 100 200
--------- ---------
Net cash used in investing activities (74,300) (60,000)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Due to affiliates 191,500 (18,300)
Deferred loan costs (300) (2,400)
Repayment of debt (600,000) (450,000)
--------- ---------
Net cash used in financing activities (408,800) (470,700)
--------- ---------
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 145,100 (4,400)
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 169,400 659,400
--------- ---------
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 314,500 $ 655,000
========= =========
</TABLE>
See accompanying notes to condensed financial statements.
-5-
<PAGE> 6
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
NOTES TO CONDENSED FINANCIAL STATEMENTS
=======================================
1. INTERIM FINANCIAL STATEMENTS
The accompanying condensed interim financial statements for the three
and six months ended June 30, 1998 and 1997 are unaudited. These condensed
interim financial statements should be read in conjunction with the audited
financial statements and notes thereto included in the Partnership's latest
Annual Report on Form 10-K. In the opinion of management, such statements
reflect all adjustments (consisting only of normal recurring adjustments)
necessary for a fair presentation of the results of such periods. The results of
operations for the three and six months ended June 30, 1998 are not necessarily
indicative of results for the entire year.
2. TRANSACTIONS WITH THE GENERAL PARTNERS AND AFFILIATES
The Partnership has a management and service agreement with a wholly
owned subsidiary of the Corporate General Partner (the "Manager") for a monthly
management fee of 5% of revenues, excluding revenues from the sale of cable
television systems or franchises. Management fee expense approximated $45,800
and $92,000 for the three and six months ended June 30, 1998.
In addition to the monthly management fee described above, the
Partnership reimburses the Manager for direct expenses incurred on behalf of the
Partnership and for the Partnership's allocable share of operational costs
associated with services provided by the Manager. All cable television
properties managed by the Corporate General Partner and its subsidiary are
charged a proportionate share of these expenses. The Corporate General Partner
has contracted with Falcon Holding Group, L.P. ("FHGLP"), an affiliated
partnership, to provide corporate management services for the Partnership.
Corporate office allocations and district office expenses are charged to the
properties served based primarily on the respective percentage of basic
subscribers or homes passed (dwelling units within a system) within the
designated service areas. The total amount charged to the Partnership for these
services approximated $86,800 and $170,600 for the three and six months ended
June 30, 1998. Management fees and reimbursed expenses due the Corporate General
Partner are non-interest bearing.
On September 30, 1997, the Corporate General Partner contributed a
$269,300 receivable balance from the Partnership for past due management fees
and reimbursed expenses as an equity contribution to its subsidiary, Enstar
Finance Company, LLC ("EFC"). This balance remains an outstanding obligation of
the Partnership. In the normal course of business, the Partnership pays interest
and principal to EFC, its primary lender.
The Partnership also receives certain system operating management
services from an affiliate of the Corporate General Partner in addition to the
Manager due to the fact that there are no such employees directly employed by
the Partnership. The Partnership reimburses the affiliate for its allocable
share of the affiliate's operational costs. The total amount charged to the
Partnership for these costs approximated $3,400 and $7,500 for the three and six
months ended June 30, 1998. No management fee is payable to the affiliate by the
Partnership and there is no duplication of reimbursed expenses and costs paid to
the Manager.
-6-
<PAGE> 7
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
NOTES TO CONDENSED FINANCIAL STATEMENTS
=======================================
2. TRANSACTIONS WITH THE GENERAL PARTNERS AND AFFILIATES (CONTINUED)
Certain programming services have been purchased through an affiliate
of the Partnership. In turn, the affiliate charges the Partnership for these
costs based on an estimate of what the Corporate General Partner could negotiate
for such programming services for the 15 partnerships managed by the Corporate
General Partner as a group. The Partnership recorded programming fee expense of
$197,900 and $396,600 for the three and six months ended June 30, 1998.
Programming fees are included in service costs in the statements of operations.
3. EARNINGS PER UNIT OF LIMITED PARTNERSHIP INTEREST
Earnings and losses per unit of limited partnership interest is based
on the average number of units outstanding during the periods presented. For
this purpose, earnings and losses have been allocated 99% to the Limited
Partners and 1% to the General Partners. The General Partners do not own units
of partnership interest in the Partnership, but rather hold a participation
interest in the income, losses and distributions of the Partnership.
-7-
<PAGE> 8
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
INTRODUCTION
The Cable Television Consumer Protection and Competition Act of 1992
(the "1992 Cable Act") required the Federal Communications Commission ("FCC")
to, among other things, implement extensive regulation of the rates charged by
cable television systems for basic and programming service tiers, installation,
and customer premises equipment leasing. Compliance with those rate regulations
has had a negative impact on the Partnership's revenues and cash flow. The
Telecommunications Act of 1996 (the "1996 Telecom Act") substantially changed
the competitive and regulatory environment for cable television and
telecommunications service providers. Among other changes, the 1996 Telecom Act
provides that the regulation of cable programming service tier ("CPST") rates
will be terminated on March 31, 1999. Because cable service rate increases have
continued to outpace inflation under the FCC's existing regulations, the
Partnership expects Congress and the FCC to explore additional methods of
regulating cable service rate increases, including deferral or repeal of the
March 31, 1999 termination of CPST rate regulation. There can be no assurance as
to what, if any, further action may be taken by the FCC, Congress or any other
regulatory authority or court, or the effect thereof on the Partnership's
business. Accordingly, the Partnership's historical financial results as
described below are not necessarily indicative of future performance.
This Report includes certain forward looking statements regarding,
among other things, future results of operations, regulatory requirements,
competition, capital needs and general business conditions applicable to the
Partnership. Such forward looking statements involve risks and uncertainties
including, without limitation, the uncertainty of legislative and regulatory
changes and the rapid developments in the competitive environment facing cable
television operators such as the Partnership. In addition to the information
provided herein, reference is made to the Partnership's Annual Report on Form
10-K for the year ended December 31, 1997 for additional information regarding
such matters and the effect thereof on the Partnership's business.
RESULTS OF OPERATIONS
The Partnership's revenues increased from $900,900 to $916,800, or by
1.8%, and from $1,806,700 to $1,840,400, or by 1.9%, for the three and six
months ended June 30, 1998 as compared to the corresponding periods in 1997. Of
the $15,900 increase in revenues for the three months ended June 30, 1998 as
compared to the corresponding period in 1997, $45,600 was due to increases in
regulated service rates that were implemented by the Partnership in 1997 and
$4,400 was due to increases in other revenue producing items. These increases
were partially offset by a decrease of $34,100 due to decreases in the number of
subscriptions for basic, premium, tier and equipment rental services. Of the
$33,700 increase in revenues for the six months ended June 30, 1998 as compared
to the corresponding period in 1997, $91,000 was due to increases in regulated
service rates that were implemented by the Partnership in 1997 and $6,200 was
due to increases in other revenue producing items. These increases were
partially offset by a decrease of $63,500 due to decreases in the number of
subscriptions for basic, premium, tier and equipment rental services. As of June
30, 1998, the Partnership had approximately 9,300 basic subscribers and 2,200
premium service units.
-8-
<PAGE> 9
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
RESULTS OF OPERATIONS (CONTINUED)
Service costs decreased from $305,500 to $296,800, or by 2.8%, and from
$604,500 to $598,700, or by less than one percent, for the three and six months
ended June 30, 1998 as compared to the corresponding periods in 1997. Service
costs represent costs directly attributable to providing cable services to
customers. These decreases were primarily due to a decrease in copyright fees
related to 1997 copyright fee estimates which exceeded the payments made in
1998.
General and administrative expenses decreased from $130,400 to
$107,900, or by 17.3%, and from $232,400 to $216,400, or by 6.9%, for the three
and six months ended June 30, 1998 as compared to the corresponding periods in
1997. These decreases were primarily due to lower insurance expense resulting
from a non-recurring charge in the second quarter of 1997 for a workers'
compensation premium adjustment.
Management fees and reimbursed expenses increased from $123,900 to
$132,600, or by 7.0%, and from $255,100 to $262,600, or by 2.9%, for the three
and six months ended June 30, 1998 as compared to the corresponding periods in
1997. Management fees increased in direct relation to increased revenues as
described above. Reimbursed expenses increased primarily due to higher allocated
personnel costs resulting from staff additions.
Depreciation and amortization expense decreased from $218,600 to
$208,600, or by 4.6%, and from $467,500 to $418,200, or by 10.5%, for the three
and six months ended June 30, 1998 as compared to the corresponding periods in
1997, due to the effect of certain intangible assets becoming fully amortized.
The Partnership's operating income increased from $122,500 to $170,900,
or by 39.5%, and from $247,200 to $344,500, or by 39.4%, for the three and six
months ended June 30, 1998 as compared to the corresponding periods in 1997,
primarily due to increases in revenues and decreases in copyright fee expense
and insurance premiums as described above.
Interest income increased from $3,900 to $10,700 and from $6,700 to
$18,400 for the three and six months ended June 30, 1998 as compared to the
corresponding periods in 1997, primarily due to higher average cash balances
available for investment during the 1998 periods.
Interest expense increased from $58,500 to $60,200, or by 2.9%, and
from $119,700 to $120,800, or by less than one percent, for the three and six
months ended June 30, 1998 as compared to the corresponding periods in 1997, due
to higher average interest rates in the 1998 periods.
Due to the factors described above, the Partnership's net income
increased from $67,900 to $121,600, or by 79.1%, and from $134,300 to $242,300,
or by 80.4% for the three and six months ended June 30, 1998 as compared to the
corresponding periods in 1997.
Based on its experience in the cable television industry, the
Partnership believes that operating income before depreciation and amortization
(EBITDA) and related measures of cash flow serve as important financial
analysis tools for measuring and comparing cable television companies in several
areas, such as liquidity, operating performance and leverage. EBITDA is not a
measurement determined under generally accepted accounting principles ("GAAP")
and does not represent cash generated from operating activities in accordance
with GAAP. EBITDA should not be considered by the reader as an alternative to
net income as an indicator of
-9-
<PAGE> 10
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
RESULTS OF OPERATIONS (CONTINUED)
financial performance or as an alternative to cash flows as a measure of
liquidity. In addition, the definition of EBITDA may not be identical to
similarly titled measures used by other companies. EBITDA as a percentage of
revenues increased from 37.9% to 41.4% and from 39.6% to 41.4% during the three
and six months ended June 30, 1998 compared to the corresponding periods in
1997. The increases were primarily due to higher revenues and lower copyright
fee expense and insurance costs as described above. EBITDA increased from
$341,100 to $379,500, or by 11.3%, and from $714,700 to $762,700, or by 6.7%,
for the three and six months ended June 30, 1998 as compared to the
corresponding periods in 1997.
LIQUIDITY AND CAPITAL RESOURCES
The Partnership's primary objective, having invested its net offering
proceeds in cable systems, is to distribute to its partners all available cash
flow from operations and proceeds from the sale of cable systems, if any, after
providing for expenses, debt service and capital requirements relating to the
expansion, improvement and upgrade of its cable systems. The Partnership's
capital expenditures were $48,700 in the first six months of 1998. As of the
date of this Report, 94% of the available channel capacity is being utilized in
the Partnership's systems that serve 78% of its customers. Beginning in 1999,
the Partnership intends to begin the upgrade of two systems, which together
serve 81% of the customers in this group of systems and 63% of the Partnership's
total customer base. The upgrade program would increase channel capacity in such
systems and is presently estimated to require aggregate capital expenditures of
approximately $4.2 million.
On September 30, 1997, the Partnership entered into a loan agreement
with EFC, for a revolving loan facility of $4,563,000 (the "Facility") of which
$2,500,000 was advanced to the Partnership at closing. Such funds together with
available cash were used to repay the Partnership's previous note payable
balance of $2,525,000 and accrued interest expense. The Partnership prepaid
$450,000 of its outstanding borrowings under the Facility on June 22, 1998,
although the Partnership's management expects to increase borrowings under the
Facility in the future to fund the upgrade of the Partnership's systems. The
Partnership's borrowing capacity and its present cash reserves will be
insufficient to fund its entire upgrade program, and in order to fund it, the
Partnership will need to rely on increased cash flow from operations or new
sources of borrowing in order to meet its future liquidity requirements. There
can be no assurance that such cash flow increases can be attained, or that
additional future borrowings will be available to the Partnership on acceptable
terms.
The Partnership's Facility will mature on August 31, 2001, at which
time all funds previously advanced will be due in full. Borrowings bear interest
at the lender's base rate (8.5% at June 30, 1998) plus 0.625%, or at an offshore
rate plus 1.875%. The Partnership is permitted to prepay amounts outstanding
under the Facility at any time without penalty, and is able to reborrow
throughout the term of the Facility up to the maximum commitment then available
so long as no event of default exists. If the Partnership has excess cash flow
and its ratio of debt to cash flow exceeds 4.25 to 1, or it receives proceeds
from sales of its assets in excess of a specified amount, the Partnership is
required to make mandatory prepayments under the Facility. Such prepayments
permanently reduce the maximum commitment under the Facility.
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<PAGE> 11
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)
The Facility contains certain financial tests and other covenants
including, among others, restrictions on incurrence of indebtedness,
investments, sales of assets, acquisitions and other covenants, defaults and
conditions. The Partnership believes it was in compliance with the covenants at
June 30, 1998.
The Corporate General Partner contributed its $269,300 receivable
balance from the Partnership for past due management fees and reimbursed
expenses as an equity contribution to EFC. This balance was not paid on
September 30, 1997 and remains an outstanding obligation of the Partnership.
The Facility does not restrict the payment of distributions to partners
unless an event of default exists thereunder or the ratio of debt to cash flow
is greater than 4 to 1. However, as a result of the pending upgrade program
discussed above, the Corporate General Partner has concluded that it is not
prudent for the Partnership to resume paying distributions at this time.
Beginning in August 1997, the Partnership elected to self-insure its
cable distribution plant and subscriber connections against property damage as
well as possible business interruptions caused by such damage. The decision to
self-insure was made due to significant increases in the cost of insurance
coverage and decreases in the amount of insurance coverage available.
While the Partnership has made the election to self-insure for these
risks based upon a comparison of historical damage sustained over the past five
years with the cost and amount of insurance currently available, there can be no
assurance that future self-insured losses will not exceed prior costs of
maintaining insurance for these risks. Approximately 73% of the Partnership's
subscribers are served by its system in Flora, Illinois and neighboring
communities. Significant damage to the system due to seasonal weather conditions
or other events could have a material adverse effect on the Partnership's
liquidity and cash flows. The Partnership continues to purchase insurance
coverage in amounts its management views as appropriate for all other property,
liability, automobile, workers' compensation and other types of insurable risks.
The "Year 2000" issue refers to certain contingencies that could result
from computer programs being written using two digits rather than four to define
the year. Many existing computer systems, including certain of the Partnership's
computer systems, process transactions based on two digits for the year of the
transaction (for example, "98" for 1998). These computer systems may not operate
effectively when the last two digits become "00," as will occur on January 1,
2000.
The Corporate General Partner has commenced an assessment of the
Partnership's Year 2000 business risks and its exposure to computer systems, to
operating equipment which is date sensitive and to the interface systems of its
vendors and service providers. Based on a preliminary study, the Corporate
General Partner has concluded that certain of the Partnership's information
systems were not Year 2000 compliant and has elected to replace such software
and hardware with Year 2000 compliant applications and equipment, although the
decision to replace major portions of such software and hardware had previously
been made without regard to the Year 2000 issue. The Corporate General Partner
expects to install substantially all of the new systems in 1998, with the
remaining systems to be installed in the first half of 1999. The total
anticipated cost, including replacement software and hardware, will be borne by
FHGLP.
-11-
<PAGE> 12
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)
In addition to evaluating internal systems, the Partnership is
currently assessing its exposure to risks associated with its operating and
revenue generating equipment and has also initiated communications with
significant third party vendors and service suppliers to determine the extent to
which the Partnership's interface systems are vulnerable should those third
parties fail to solve their own Year 2000 problems on a timely basis. The
Partnership currently expects that the cost to replace non-compliant equipment
will be determined during the third quarter of 1998. Such costs will be borne
by the Partnership. There can be no assurance that the systems of other
companies on which the Partnership's systems rely will be timely converted and
that the failure to do so would not have an adverse impact on the Partnership's
business. The Partnership continues to closely monitor developments with its
vendors and service suppliers.
SIX MONTHS ENDED JUNE 30, 1998 AND 1997
Cash provided by operating activities decreased by $101,900 in the six
months ended June 30, 1998 from the corresponding period in 1997. Changes in
receivables and prepaid expenses used $123,900 more cash in the first six months
of 1998 than in the corresponding period in 1997 due to differences in the
timing of receivable collections and in the payment of prepaid expenses. The
Partnership used $37,500 more cash to pay liabilities owed to third-party
creditors due to differences in the timing of payments.
The Partnership used $14,300 less cash in investing activities during
the six months ended June 30, 1998 than in the comparable six months of 1997
primarily due to decreases of $7,500 and $6,700 in expenditures for tangible and
intangible assets, respectively. Financing activities used $61,900 more cash in
the first six months of 1998 than in the corresponding period of 1997. The
Partnership used $209,800 more cash to pay liabilities owed to the Corporate
General Partner in the first six months of 1998 than in the corresponding period
of 1997 due to differences in the timing of payments. The Partnership used
$150,000 less cash in the first six months of 1998 for the repayment of debt
than in the comparable 1997 period.
INFLATION
Certain of the Partnership's expenses, such as those for wages and
benefits, equipment repair and replacement, and billing and marketing generally
increase with inflation. However, the Partnership does not believe that its
financial results have been, or will be, adversely affected by inflation in a
material way, provided that it is able to increase its service rates
periodically, of which there can be no assurance.
-12-
<PAGE> 13
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
PART II. OTHER INFORMATION
ITEMS 1-5. Not applicable.
ITEM 6. Exhibits and Reports on Form 8-K
(a) None.
(b) No reports on Form 8-K were filed during the
quarter for which this report is filed.
<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.
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
a GEORGIA LIMITED PARTNERSHIP
-----------------------------
(Registrant)
By: ENSTAR COMMUNICATIONS CORPORATION
General Partner
Date: August 13, 1998 By: /s/ Michael K. Menerey
---------------------------------
Michael K. Menerey,
Executive Vice President,
Chief Financial Officer and
Secretary
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AT JUNE 30, 1998, AND THE STATEMENTS OF OPERATIONS FOR THE SIX MONTHS
ENDED JUNE 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 655,000
<SECURITIES> 0
<RECEIVABLES> 71,000
<ALLOWANCES> 6,400
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 8,323,200
<DEPRECIATION> 5,133,100
<TOTAL-ASSETS> 5,033,900
<CURRENT-LIABILITIES> 850,000
<BONDS> 2,050,000
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 5,033,900
<SALES> 0
<TOTAL-REVENUES> 1,840,400
<CGS> 0
<TOTAL-COSTS> 1,495,900
<OTHER-EXPENSES> (18,600)
<LOSS-PROVISION> 19,900
<INTEREST-EXPENSE> 120,800
<INCOME-PRETAX> 242,300
<INCOME-TAX> 0
<INCOME-CONTINUING> 242,300
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 242,300
<EPS-PRIMARY> 3.01
<EPS-DILUTED> 0
</TABLE>
