<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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 September 30, 2000
--------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File Number 0-17687
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Enstar Income/Growth Program Six-A, L.P.
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(Exact name of Registrant as specified in its charter)
Georgia 58-1755230
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
12444 Powerscourt Dr., Suite 100
St. Louis, Missouri 63131
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (314) 965-0555
----------------
--------------------------------------------------------------------------------
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
---- ----
Exhibit Index located Page E-1
<PAGE> 2
PART I - FINANCIAL INFORMATION
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
CONDENSED BALANCE SHEETS
===========================================
<TABLE>
<CAPTION>
December 31, September 30,
1999* 2000
----------- -------------
(Unaudited)
<S> <C> <C>
ASSETS:
Cash and cash equivalents $ 675,900 $ 342,400
Accounts receivable, net of allowance of doubtful accounts of $2,300
and $25,200, respectively 46,500 75,000
Prepaid expenses and other assets 119,900 56,900
Property, plant and equipment, net of accumulated
depreciation of $6,121,000 and $6,740,200, respectively 2,767,600 4,193,000
Franchise cost, net of accumulated amortization
of $2,871,500 and $3,058,400, respectively 722,900 561,000
Deferred loan costs and other deferred charges, net 32,600 25,400
----------- -----------
$ 4,365,400 $ 5,253,700
=========== ===========
LIABILITIES AND PARTNERSHIP CAPITAL
LIABILITIES:
Accounts payable $ 260,800 $ 284,900
Due to affiliates 380,900 1,512,300
Note payable - affiliate 1,050,000 700,000
----------- -----------
1,691,700 2,497,200
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PARTNERSHIP CAPITAL (DEFICIT):
General Partner (135,900) (135,100)
Limited Partners 2,809,600 2,891,600
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TOTAL PARTNERSHIP CAPITAL 2,673,700 2,756,500
----------- -----------
$ 4,365,400 $ 5,253,700
=========== ===========
</TABLE>
The accompanying notes are an integral part of these condensed
financial statements.
--------
* Agrees with audited balance sheet included in the Partnership's Annual Report
on Form 10-K
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<PAGE> 3
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
CONDENSED STATEMENTS OF OPERATIONS
===========================================
<TABLE>
<CAPTION>
Unaudited
------------------------------
Three months ended
September 30,
------------------------------
1999 2000
--------- ---------
<S> <C> <C>
REVENUES $ 866,100 $ 843,900
--------- ---------
OPERATING EXPENSES:
Service costs 285,200 233,800
General and administrative expenses 92,600 160,200
General partner management fees
and reimbursed expenses 132,100 154,100
Depreciation and amortization 255,100 286,700
--------- ---------
765,000 834,800
--------- ---------
OPERATING INCOME 101,100 9,100
--------- ---------
OTHER INCOME (EXPENSE):
Interest income 7,700 1,200
Interest expense (37,300) (31,300)
--------- ---------
(29,600) (30,100)
--------- ---------
NET INCOME (LOSS) $ 71,500 $ (21,000)
========= =========
Net income (loss) allocated to General Partner $ 700 $ (200)
========= =========
Net income (loss) allocated to Limited Partners $ 70,800 $ (20,800)
========= =========
NET INCOME (LOSS) PER UNIT OF LIMITED
PARTNERSHIP INTEREST $ 0.88 $ (0.26)
========= =========
AVERAGE LIMITED PARTNERSHIP
UNITS OUTSTANDING DURING PERIOD 79,818 79,818
========= =========
</TABLE>
The accompanying notes are an integral part of these condensed
financial statements.
-3-
<PAGE> 4
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
CONDENSED STATEMENTS OF OPERATIONS
===========================================
<TABLE>
<CAPTION>
Unaudited
-----------------------------------
Nine months ended
September 30,
-----------------------------------
1999 2000
----------- -----------
<S> <C> <C>
REVENUES $ 2,602,700 $ 2,518,200
----------- -----------
OPERATING EXPENSES:
Service costs 877,700 714,000
General and administrative expenses 370,100 394,300
General partner management fees
and reimbursed expenses 394,100 408,900
Depreciation and amortization 770,900 836,400
----------- -----------
2,412,800 2,353,600
----------- -----------
OPERATING INCOME 189,900 164,600
----------- -----------
OTHER INCOME (EXPENSE):
Interest income 19,000 17,800
Interest expense (112,600) (99,600)
----------- -----------
(93,600) (81,800)
----------- -----------
NET INCOME $ 96,300 $ 82,800
=========== ===========
Net income allocated to General Partner $ 1,000 $ 800
=========== ===========
Net income allocated to Limited Partners $ 95,300 $ 82,000
=========== ===========
NET INCOME PER UNIT OF LIMITED
PARTNERSHIP INTEREST $ 1.19 $ 1.03
=========== ===========
AVERAGE LIMITED PARTNERSHIP
UNITS OUTSTANDING DURING PERIOD 79,818 79,818
=========== ===========
</TABLE>
The accompanying notes are an integral part of these condensed
financial statements.
-4-
<PAGE> 5
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
CONDENSED STATEMENTS OF CASH FLOWS
===========================================
<TABLE>
<CAPTION>
Unaudited
-------------------------------------
Nine months ended
September 30,
-------------------------------------
1999 2000
---------------- -----------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 96,300 $ 82,800
Adjustments to reconcile net income to net cash
from operating activities:
Depreciation and amortization 770,900 836,400
Amortization of deferred loan costs 12,800 13,000
Changes in:
Accounts receivable, prepaid expenses and other assets (92,900) 34,500
Accounts payable and due to affiliates (314,500) 1,155,500
----------- -----------
Net cash from operating activities 472,600 2,122,200
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (283,800) (2,073,900)
Increase in intangible assets (39,000) (25,000)
----------- -----------
Net cash from investing activities (322,800) (2,098,900)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Deferred loan costs -- (6,800)
Repayment of debt (300,000) (350,000)
----------- -----------
Net cash from financing activities (300,000) (356,800)
----------- -----------
DECREASE IN CASH AND CASH EQUIVALENTS (150,200) (333,500)
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 542,000 675,900
----------- -----------
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 391,800 $ 342,400
=========== ===========
</TABLE>
The accompanying notes are an integral part of these 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 Enstar Income/Growth Program Six-A, L.P. (the "Partnership"), as of
September 30, 2000, and for the three and nine months ended September 30, 2000
and 1999, are unaudited. These condensed interim financial statements should be
read in conjunction with the audited financial statements and notes thereto
included in our latest Annual Report on Form 10-K. In the opinion of management,
the condensed interim financial 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 nine months
ended September 30, 2000, are not necessarily indicative of results for the
entire year.
2. TRANSACTIONS WITH THE GENERAL PARTNER AND AFFILIATES
The Partnership has a management and service agreement (the
"Management Agreement") with Enstar Cable Corporation (the "Manager"), a wholly
owned subsidiary of Enstar Communications Corporation (ECC), the corporate
general partner, for a monthly management fee of 5% of gross revenues to the
Manager, excluding revenues from the sale of cable television systems or
franchises. The Partnership's management fee expense approximated $42,200 and
$125,900 for the three and nine months ended September 30, 2000, respectively.
For the three and nine months ended September 30, 1999, the Partnership's
management fee expense approximated $43,300 and $130,100, respectively.
Management fees are non-interest bearing.
In addition to the monthly management fee, 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. Additionally, Charter
Communications Holding Company, LLC and its affiliates (collectively, "Charter")
provide other management and operational services for the Partnership. Such
services were provided by Falcon Communications, L.P. and its affiliates
(collectively, "Falcon") prior to November 12, 1999. These expenses are charged
to the properties served based primarily on the Partnership's allocable share of
operational costs associated with services provided. The total amount charged to
the Partnership for these services approximated $111,900 and $283,000 for the
three and nine months ended September 30, 2000, respectively. For the three and
nine months ended September 30, 1999, the total amount charged to the
Partnership for these services approximated $88,800 and $264,000, respectively.
Substantially all programming services have been purchased
through Charter since November 12, 1999. Before that time, substantially all
programming services were purchased through Falcon. Falcon charged the
Partnership for these costs based on an estimate of what ECC could negotiate for
such programming services for the 14 partnerships managed as a group. Charter
charges the Partnership for these costs based on its costs. The Partnership
recorded programming fee expense of $156,300 and $467,800 for the three and nine
months ended September 30, 2000,
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<PAGE> 7
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
NOTES TO CONDENSED FINANCIAL STATEMENTS - (CONTINUED)
===========================================
respectively. For the three and nine months ended September 30, 1999, the
Partnership recorded programming fee expense of $208,000 and $615,800,
respectively. Programming fees are included in service costs in the statements
of operations.
On September 30, 1997, ECC 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. This balance
remains an outstanding obligation of the Partnership. In the normal course of
business, the Partnership pays interest and principal to Enstar Finance Company,
LLC, the Partnership's primary lender, as well as a commitment fee on the
unborrowed portion of the facility.
3. NET INCOME/(LOSS) PER UNIT OF LIMITED PARTNERSHIP INTEREST
Net income/(loss) per unit of limited partnership interest is
based on the average number of units outstanding during the periods presented.
For this purpose, net income/(loss) has been allocated 99% to the Limited
Partner and 1% to the General Partner. The General Partner does not own units of
partnership interest in the Partnership, but rather holds a participation
interest in the income, losses and distributions of the Partnership.
4. SALE OF CABLE SYSTEMS
On June 21, 2000, (as amended on September 29, 2000) the
Partnership, together with certain affiliates, (collectively, the "Sellers")
entered into a purchase and sale agreement (the "Gans I Agreement") with
Multimedia Acquisition Corp., an affiliate of Gans Multimedia Partnership, (the
"Purchaser"). The Gans I Agreement provides for the Purchaser to acquire the
assets comprising the Partnership's cable system serving Dyer, Tennessee, as
well as certain assets of other affiliates. The aggregate purchase price payable
to the Sellers pursuant to the Gans I Agreement is $27,621,500 in cash (subject
to normal closing adjustments). Of that amount, $3,972,157 (subject to closing
adjustments) is payable to the Partnership. The allocation of the purchase price
among each of the Sellers was assigned by the Purchaser for each of the systems.
On August 8, 2000, (as amended on September 29, 2000) the
Partnership, together with certain affiliates, (collectively, the "Selling
Affiliates") entered into a purchase and sale agreement (the "Gans II
Agreement") with Multimedia Acquisition Corp., an affiliate of Gans Multimedia
Partnership, (the "Buyer"). The Gans II Agreement provides for the Buyer to
acquire the assets comprising the Partnership's cable system serving Flora,
Illinois, as well as certain assets of other affiliates. The aggregate purchase
price payable to the Selling Affiliates pursuant to the Gans II Agreement is
$95,574,600 in cash (subject to normal closing adjustments). Of that amount,
$12,444,000 (subject to normal closing adjustments) is payable to the
Partnership. The allocation of
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<PAGE> 8
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
NOTES TO CONDENSED FINANCIAL STATEMENTS - (CONTINUED)
===========================================
the purchase price among each of the Selling Affiliates was assigned by the
Buyer for each of the systems.
Both of these purchase and sale agreements are subject to
numerous closing conditions, including without limitation: (a) receipt of the
necessary governmental consents to transfer franchises covering an aggregate of
90% of the subscribers to be sold; (b) receipt of certain other material
consents and approvals required for the consummation of the sale; (c) receipt of
the necessary approvals of the Limited Partners; and (d) other standard closing
conditions. With respect to clause (c) above, completion of the transaction is
contingent on the Limited Partners of the Partnership and the other selling
affiliates voting to approve the sale.
-8-
<PAGE> 9
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
INTRODUCTION
This report includes certain forward-looking statements
regarding, among other things, our 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 here, reference is made to our Annual Report on Form 10-K
for the year ended December 31, 1999, for additional information regarding such
matters and the effect thereof on our business.
RESULTS OF OPERATIONS
Our revenues decreased from $866,100 to $843,900, or by 2.6%,
and from $2,602,700 to $2,518,200, or by 3.2%, for the three and nine months
ended September 30, 2000, as compared to the corresponding periods in 1999. Of
the $22,200 decrease for the three months ended September 30, 2000,
approximately $43,100 was due to decreases in the number of subscribers for
basic, premium, tier and equipment rental services. These decreases were
partially offset by a $18,000 increase in other revenue producing items as well
as a $2,900 increase in regulated service rates that we implemented in 2000. Of
the $84,500 decrease in revenues for the nine months ended September 30, 2000,
$166,700 was due to decreases in the number of subscribers for basic, premium,
tier and equipment rental services, which was offset by a $12,400 increase in
other revenue producing items and a $69,800 increase due to increases in
regulated service rates that we implemented in 2000. As of September 30, 2000,
we had approximately 8,218 basic subscribers and 2,018 premium service units.
Effective with the acquisition of Falcon Communications, L.P.
(Falcon) by Charter Communications Holdings Company, LLC (Charter) on November
12, 1999, certain activities previously incurred at the Partnership and expensed
through service cost and general and administrative expense have been either
eliminated by Charter, or have been reimbursed by the Partnership based on
Charter's costs incurred. These reimbursed costs are included in general partner
management fees and reimbursed expenses on the Partnership's statements of
operations. The total of service costs, general and administrative expenses and
general partner management fees and reimbursed expenses increased from $509,900
to $548,100, or by 7.5%, and decreased from $1,641,900 to $1,517,200, or by
7.6%, for the three and nine months ended September 30, 2000, as compared to the
corresponding periods in 1999.
Our service costs decreased from $285,200 to $233,800, or by
18.0%, and from $877,700 to $714,000, or by 18.7%, for the three and nine months
ended September 30, 2000, as compared to the corresponding periods in 1999.
Service costs represent costs directly attributable to providing cable services
to customers. The decrease was primarily due to lower programming fees resulting
from lower rates that Charter has extended to us and a decrease in subscribers.
-9-
<PAGE> 10
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
Our general and administrative expenses increased from $92,600
to $160,200, or by 73.0%, and from $370,100 to $394,300, or by 6.5%, for the
three and nine months ended September 30, 2000, as compared to the corresponding
periods in 1999. The increase was due to an increase in bad debt expense and
costs associated with customer billing.
Our general partner management fees and reimbursed expenses
increased from $132,100 to $154,100, or by 16.7%, and from $394,100 to $408,900,
or by 3.8%, for the three and nine months ended September 30, 2000, as compared
to the corresponding periods in 1999, due to a third quarter increase in bank
fees, a reimbursable expense.
Our depreciation and amortization expense increased from
$255,100 to $286,700, or by 12.4%, and from $770,900 to $836,400, or by 8.5% for
the three and nine months ended September 30, 2000, as compared to the
corresponding periods in 1999, due to the additional depreciation related to
plant asset additions.
Due to the factors described above, our operating income
decreased from $101,100 to $9,100, or 91.0%, and from $189,900 to $164,600, or
by 13.3%, for the three and nine months ended September 30, 2000, as compared to
the corresponding periods in 1999.
Our interest income decreased from $7,700 to $1,200, or by
84.4%, and from $19,000 to $17,800, or by 6.3%, for the three and nine months
ended September 30, 2000, as compared to the corresponding periods in 1999,
primarily due to lower average cash balances available for investment and
partially offset by higher average interest rates earned during 2000.
Our interest expense decreased from $37,300 to $31,300, or by
16.1%, and from $112,600 to $99,600, or by 11.5%, for the three and nine months
ended September 30, 2000, as compared to the corresponding periods in 1999,
primarily due to lower average outstanding borrowings in 2000.
Due to the factors described above, our net income decreased
from $71,500 to $(21,000), or by 129.4%, and from $96,300 to $82,800, or by
14.0%, for the three and nine months ended September 30, 2000, as compared to
the corresponding periods in 1999.
Based on our experience in the cable television industry, we
believe that operating income before depreciation and amortization, or 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 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 decreased from 41.1% to 35.1% and increased from 36.9% to 39.8% during
the three and nine months ended September 30, 2000, as compared to the
corresponding periods in 1999. The three-month decrease was primarily caused by
increases in bad debt and billing/postage expenses. The nine-month increase was
primarily caused by lower programming fees and other factors as described above.
EBITDA
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<PAGE> 11
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
decreased from $356,200 to $295,800, or by 17.0%, and increased from $960,800 to
$1,001,000, or by 4.2%, for the three and nine months ended September 30, 2000,
as compared to the corresponding periods in 1999.
LIQUIDITY AND CAPITAL RESOURCES
Our primary objective is to distribute to our 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 our existing cable
systems.
In accordance with the Agreement, Enstar Communications
Corporation (ECC) has implemented a plan for liquidating the Partnership. On
June 21, 2000, (as amended on September 29, 2000) the Partnership, together with
certain affiliates, (collectively, the "Sellers") entered into a purchase and
sale agreement (the "Gans I Agreement") with Multimedia Acquisition Corp., an
affiliate of Gans Multimedia Partnership, (the "Purchaser"). The Gans I
Agreement provides for the Purchaser to acquire the assets comprising the
Partnership's cable system serving Dyer, Tennessee, as well as certain assets of
other affiliates. The aggregate purchase price payable to the Sellers pursuant
to the Gans I Agreement is $27,621,500 in cash (subject to normal closing
adjustments). Of that amount, $3,972,157 (subject to closing adjustments) is
payable to the Partnership. The allocation of the purchase price among each of
the Sellers was assigned by the Purchaser for each of the systems.
On August 8, 2000, (as amended on September 29, 2000) the
Partnership, together with certain affiliates, (collectively, the "Selling
Affiliates") entered into a purchase and sale agreement (the "Gans II
Agreement") with Multimedia Acquisition Corp., an affiliate of Gans Multimedia
Partnership, (the "Buyer"). The Gans II Agreement provides for the Buyer to
acquire the assets comprising the Partnership's cable system serving Flora,
Illinois, as well as certain assets of other affiliates. The aggregate purchase
price payable to the Selling Affiliates pursuant to the Gans II Agreement is
$95,574,600 in cash (subject to normal closing adjustments). Of that amount,
$12,444,000 (subject to closing adjustments) is payable to the Partnership. The
allocation of the purchase price among each of the Selling Affiliates was
assigned by the Buyer for each of the systems.
Both of these purchase and sale agreements are subject to
numerous closing conditions, including without limitation: (a) receipt of the
necessary governmental consents to transfer franchises covering an aggregate of
90% of the subscribers to be sold; (b) receipt of certain other material
consents and approvals required for the consummation of the sale; (c) receipt of
the necessary approvals of the Limited Partners; and (d) other standard closing
conditions. With respect to clause (c) above, completion of the transaction is
contingent on the Limited Partners of the Partnership and the other selling
affiliates voting to approve the sale.
The Partnership's franchise agreement in Flora, Illinois, is
under negotiation for renewal and the Partnership believes that the renewed
franchise agreement may require the Partnership to upgrade its cable plant at an
estimated cost of $1,500,000 within 24 months. The full upgrade program is
estimated to require aggregate capital expenditures of approximately $4,000,000.
-11-
<PAGE> 12
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
In addition to the required upgrade described above, capital expenditures
budgeted for 2000 are $802,700 for the replacement of other assets and to extend
the Partnership's cable plant into new service areas. As of September 30, 2000
capital spending approximated $2,073,900, which included expenditures related to
a previously completed upgrade required in the Partnership's franchise area in
Salem, Illinois, and to other capital expenditures described above.
We are party to a loan agreement with Enstar Finance Company,
LLC, a subsidiary of ECC. The loan agreement provides for a revolving loan
facility of $3,600,000. Total outstanding borrowings were $700,000 and
$1,050,000 at September 30, 2000 and 1999, respectively. We pay a commitment fee
of 0.5% to Enstar Finance Company, LLC, on the unborrowed portion of the
facility. We expect to increase borrowings under the facility in the future to
fund the upgrade of our systems. However, borrowing capacity and our present
cash reserves will be insufficient to fund our entire upgrade program.
Consequently, if our systems are not sold, we will need to rely on increased
cash flow from operations or new sources of financing in order to meet our
future liquidity requirements. There can be no assurance that such cash flow
increases can be attained, or that additional future financing will be available
to us on acceptable terms. If we are not able to attain such cash flow
increases, or obtain new sources of borrowings, we will not be able to complete
our full upgrade program. As a result, the value of our systems will be lower
than that of systems rebuilt to a higher technical standard.
Our loan facility matures on August 31, 2001, at which time
all amounts then outstanding are due in full. Borrowings bear interest at the
lender's base rate (9.5% at September 30, 2000) plus 0.625%, or at an offshore
rate (6.74% at September 30, 2000) plus 1.875%. Under certain circumstances, we
are required to make mandatory prepayments, which permanently reduce the maximum
commitment under the loan facility. The loan 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. We believe that we are in compliance with the covenants
at September 30, 2000. The loan facility does not restrict the payment of
distributions to partners unless an event of default exists thereunder or our
ratio of debt to cash flow is greater than 4 to 1. However, due to the upgrade
program discussed above, the corporate general partner believes it is critical
to conserve cash and borrowing capacity and, consequently, has concluded that it
would not be prudent for the Partnership to resume paying distributions at this
time.
ECC contributed its $269,300 receivable balance from us for
past due general partner management fees and reimbursed expenses as an equity
contribution to Enstar Finance Company, LLC. This balance remains an outstanding
obligation of ours.
Falcon purchased insurance coverage for all of the cable
television properties owned or managed by it to cover damage to cable
distribution plant and subscriber connections and against business interruptions
resulting from such damage. This coverage is subject to a significant annual
deductible which applies to all of the cable television properties formerly
owned or managed by Falcon Communications through November 12, 1999, and
currently managed by Charter, including those of the Partnership.
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<PAGE> 13
ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.
Approximately 73% of our subscribers are served by our 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 our liquidity and cash flows. We continue to purchase insurance
coverage in amounts our management views as appropriate for all other property,
liability, automobile, workers' compensation and other types of insurable risks.
Operating activities provided $1,649,600 more cash in the nine
months ended September 30, 2000, than in the corresponding period in 1999.
Changes in receivables and prepaid expenses provided $127,400 more cash in the
first nine months of 2000, than in the corresponding 1999 period due to
differences in the timing of receivable collections and the payment of prepaid
expenses. We used $1,470,000 less cash to pay liabilities owed to affiliates and
third party creditors during the nine months ended September 30, 2000, than in
the corresponding period in 1999, due to differences in the timing of payments.
We used $1,776,100 more cash in investing activities during
the nine months ended September 30, 2000, than in the corresponding nine months
of 1999 due to an increase of $1,790,100 in expenditures for tangible assets and
a decrease of $14,000 in expenditures for intangible assets. We used $56,800
more cash in financing activities during the nine months ended September 30,
2000, than in the corresponding period of 1999 for the payment of debt and
deferred loan costs related to our loan facility.
INFLATION
Certain of our expenses, such as those for wages and benefits,
equipment repair and replacement, and billing and marketing generally increase
with inflation. However, we do not believe that our financial results have been,
or will be, adversely affected by inflation in a material way, provided that we
are able to increase our service rates periodically, of which there can be no
assurance.
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<PAGE> 14
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) Exhibits
10.1 Amendment dated September 29, 2000, of the
Asset Purchase Agreement dated June 21,
2000, by and among Multimedia Acquisition
Corp., as Buyer, and Enstar Income Program
1984-1, L.P., Enstar Income Program IV-3,
L.P., Enstar Income/Growth Program Six-A,
L.P., Enstar VII, Enstar VIII and Enstar X,
Ltd., as Sellers.*
10.2 Amendment dated September 29, 2000, of the
Asset Purchase Agreement dated August 8,
2000, by and among Multimedia Acquisition
Corp., as Buyer, and Enstar Income Program
II-1, L.P., Enstar Income Program II-2,
L.P., Enstar Income Program IV-3, L.P.,
Enstar Income/Growth Program Six-A, L.P.,
Enstar IX, Ltd., Enstar XI, Ltd., Enstar
IV/PBD Systems Venture, Enstar Cable of
Cumberland Valley and Enstar Cable of
Macoupin County, as Sellers. (1)
27.1 Financial Data Schedule.*
(b) Reports on Form 8-K
- None
-------
* Filed herewith
(1) Incorporated by reference to the report on Form 10-Q of Enstar Income
Program IV-1, L.P. filed on November 13, 2000 (File No. 00015705).
-14-
<PAGE> 15
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: November 13, 2000 By: /s/ Kent D. Kalkwarf
---------------------
Kent D. Kalkwarf
Executive Vice President and Chief Financial Officer
(Principal Financial Officer and Principal
Accounting Officer)
-15-
<PAGE> 16
EXHIBIT INDEX
Exhibit
Number Description
10.1 Amendment dated September 29, 2000, of the Asset Purchase Agreement
dated June 21, 2000, by and among Multimedia Acquisition Corp., as
Buyer, and Enstar Income Program 1984-1, L.P., Enstar Income Program
IV-3, L.P., Enstar Income/Growth Program Six-A, L.P., Enstar VII,
Enstar VIII and Enstar X, Ltd., as Sellers.
10.2 Amendment dated September 29, 2000, of the Asset Purchase Agreement,
dated August 8, 2000, by and among Multimedia Acquisition Corp., as
Buyer, and Enstar Income Program II-1, L.P., Enstar Income Program
II-2, L.P., Enstar Income Program IV-1, L.P., Enstar Income Program
IV-2, L.P., Enstar Income Program IV-3, L.P., Enstar Income/Growth
Program Five-A, L.P., Enstar Income/Growth Program Five-B, L.P., Enstar
Income/Growth Program Six-A, L.P., Enstar IX and Enstar XI, Ltd., as
Sellers (incorporated by reference to the Current Report on Form 10-Q
of Enstar Income Program IV-1, L.P. filed on November 13, 2000, File
No. 00015705).
27.1 Financial Data Schedule.
E-1
