<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, 1997
-------------------------
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 0-18495
-----------
Enstar Income/Growth Program Six-B, L.P.
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Georgia 58-1754588
- ------------------------------- ----------------------
(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-B, L.P.
CONDENSED BALANCE SHEETS
================================================
<TABLE>
<CAPTION>
December 31, June 30,
1996* 1997
------------ -----------
(Unaudited)
<S> <C> <C>
ASSETS:
Cash and cash equivalents $ 353,500 $ 257,400
Accounts receivable, less allowance of $1,900 and
$3,700 for possible losses 67,200 76,200
Insurance claim receivable 250,500 --
Prepaid expenses and other assets 61,600 62,100
Property, plant and equipment, less accumulated
depreciation and amortization of $2,621,500 and $2,936,000 3,593,400 3,529,000
Franchise cost, net of accumulated
amortization of $2,256,400 and $2,435,900 2,053,300 1,872,000
Intangible costs, net of accumulated amortization
of $322,300 and $350,700 277,000 249,500
----------- -----------
$ 6,656,500 $ 6,046,200
=========== ===========
LIABILITIES AND PARTNERSHIP CAPITAL
-----------------------------------
LIABILITIES:
Accounts payable $ 145,700 $ 162,500
Due to affiliates 1,679,000 1,232,500
Note payable 1,288,400 1,077,100
----------- -----------
TOTAL LIABILITIES 3,113,100 2,472,100
----------- -----------
COMMITMENTS AND CONTINGENCIES
PARTNERSHIP CAPITAL (DEFICIT):
General partners (37,200) (36,900)
Limited partners 3,580,600 3,611,000
----------- -----------
TOTAL PARTNERSHIP CAPITAL 3,543,400 3,574,100
----------- -----------
$ 6,656,500 $ 6,046,200
=========== ===========
</TABLE>
*As presented in the audited financial statements.
See accompanying notes to condensed financial statements.
-2-
<PAGE> 3
ENSTAR INCOME/GROWTH PROGRAM SIX-B, L.P.
CONDENSED STATEMENTS OF OPERATIONS
================================================
<TABLE>
<CAPTION>
Unaudited
---------------------------
Three months ended
June 30,
---------------------------
1996 1997
--------- ---------
<S> <C> <C>
REVENUES $ 605,100 $ 727,100
--------- ---------
OPERATING EXPENSES:
Service costs 181,800 243,300
General and administrative expenses 105,800 101,900
General Partner management fees
and reimbursed expenses 57,900 68,100
Depreciation and amortization 224,600 275,900
--------- ---------
570,100 689,200
--------- ---------
OPERATING INCOME 35,000 37,900
--------- ---------
OTHER INCOME (EXPENSE):
Interest income 1,900 2,100
Interest expense (37,900) (31,400)
--------- ---------
(36,000) (29,300)
--------- ---------
NET INCOME (LOSS) $ (1,000) $ 8,600
========= =========
Net income allocated to General Partners $ -- $ 100
========= =========
Net income (loss) allocated to Limited Partners $ (1,000) $ 8,500
========= =========
NET INCOME (LOSS) PER UNIT OF LIMITED
PARTNERSHIP INTEREST $ (.03) $ .23
========= =========
AVERAGE LIMITED PARTNERSHIP
UNITS OUTSTANDING DURING PERIOD 36,626 36,626
========= =========
</TABLE>
See accompanying notes to condensed financial statements.
-3-
<PAGE> 4
ENSTAR INCOME/GROWTH PROGRAM SIX-B, L.P.
CONDENSED STATEMENTS OF OPERATIONS
================================================
<TABLE>
<CAPTION>
Unaudited
-------------------------------
Six months ended
June 30,
-------------------------------
1996 1997
----------- -----------
<S> <C> <C>
REVENUES $ 1,180,300 $ 1,457,900
----------- -----------
OPERATING EXPENSES:
Service costs 370,900 483,400
General and administrative expenses 203,700 202,000
General Partner management fees
and reimbursed expenses 112,100 134,400
Depreciation and amortization 436,200 547,100
----------- -----------
1,122,900 1,366,900
----------- -----------
OPERATING INCOME 57,400 91,000
----------- -----------
OTHER INCOME (EXPENSE):
Interest income 3,200 4,200
Interest expense (77,100) (64,500)
----------- -----------
(73,900) (60,300)
----------- -----------
NET INCOME (LOSS) $ (16,500) $ 30,700
=========== ===========
Net income (loss) allocated to General Partners $ (200) $ 300
=========== ===========
Net income (loss) allocated to Limited Partners $ (16,300) $ 30,400
=========== ===========
NET INCOME (LOSS) PER UNIT OF LIMITED
PARTNERSHIP INTEREST $ (.45) $ .83
=========== ===========
AVERAGE LIMITED PARTNERSHIP
UNITS OUTSTANDING DURING PERIOD 36,626 36,626
=========== ===========
</TABLE>
See accompanying notes to condensed financial statements.
-4-
<PAGE> 5
ENSTAR INCOME/GROWTH PROGRAM SIX-B, L.P.
STATEMENTS OF CASH FLOWS
================================================
<TABLE>
<CAPTION>
Unaudited
---------------------------
Six months ended
June 30,
---------------------------
1996 1997
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (16,500) $ 30,700
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation and amortization 436,200 547,100
Amortization of deferred loan costs 400 900
Increase (decrease) from changes in:
Receivables 5,200 241,500
Prepaid expenses and other assets 6,800 (500)
Accounts payable 33,100 16,800
--------- ---------
Net cash provided by operating activities 465,200 836,500
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (374,500) (272,900)
Increase in intangible assets (13,400) (1,900)
--------- ---------
Net cash used in investing activities (387,900) (274,800)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Due to affiliates 243,800 (446,500)
Repayment of debt (85,600) (211,300)
Deferred loan costs (5,000) --
--------- ---------
Net cash provided by (used in) financing activities 153,200 (657,800)
--------- ---------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 230,500 (96,100)
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 39,800 353,500
--------- ---------
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 270,300 $ 257,400
========= =========
</TABLE>
See accompanying notes to condensed financial statements.
-5-
<PAGE> 6
ENSTAR INCOME/GROWTH PROGRAM SIX-B, 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, 1997 and 1996 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, 1997 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 $36,300
and $72,900 for the three and six months ended June 30, 1997.
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. 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 $31,800 and
$61,500 for the three and six months ended June 30, 1997. The payment of
management fees and reimbursed expenses was deferred in prior years. The
Partnership will be required to continue to defer the payment of a portion of
its previously deferred management fees and reimbursable expenses, which
approximated $654,200 as of June 30, 1997. The Partnership will be obligated to
pay these deferred amounts at the point in time that liquidity improves.
Management fees and reimbursed expenses due the Corporate General Partner are
non-interest bearing.
The Partnership also receives certain system operating management
services from affiliates 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 affiliates for its allocable
share of the affiliates' operational costs. The total amount charged to the
Partnership for these costs approximated $66,600 and $127,800 for the three and
six months ended June 30, 1997. No management fee is payable to the affiliates
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-B, L.P.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(CONCLUDED)
=======================================
2. TRANSACTIONS WITH THE GENERAL PARTNERS AND AFFILIATES (CONCLUDED)
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
$132,900 and $264,100 for the three and six months ended June 30, 1997.
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.
4. RECLASSIFICATIONS
Certain 1996 amounts have been reclassified to conform to the 1997
presentation.
-7-
<PAGE> 8
ENSTAR INCOME/GROWTH PROGRAM SIX-B, L.P.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
INTRODUCTION
On February 8, 1996, President Clinton signed into law the
Telecommunications Act of 1996 (the "1996 Telecom Act"). This statute
substantially changed the competitive and regulatory environment for
telecommunications providers by significantly amending the Communications Act of
1934, including certain of the rate regulation provisions previously imposed by
the Cable Television Consumer Protection and Competition Act of 1992 (the "1992
Cable Act"). Compliance with those rate regulations has had a negative impact on
the Partnership's revenues and cash flow. The 1996 Telecom Act provides that
certain of the rate regulations will be phased out altogether in 1999. Further,
the regulatory environment will continue to change pending, among other things,
the outcome of legal challenges and Federal Communications Commission (the
"FCC") rulemaking and enforcement activity in respect of the 1992 Cable Act and
the 1996 Telecom Act. 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, 1996 for additional information regarding
such matters and the effect thereof on the Partnership's business.
RESULTS OF OPERATIONS
The Partnership's revenues increased from $605,100 to $727,100, or by
20.2%, and from $1,180,300 to $1,457,900, or by 23.5%, for the three and six
months ended June 30, 1997 as compared to the corresponding periods in 1996. Of
the $122,000 increase in revenues for the three months ended June 30, 1997 as
compared to the corresponding period in 1996, $55,500 was due to increases in
regulated service rates that were implemented by the Partnership in the second
and fourth quarters of 1996, $33,900 was due to increases in the number of
subscriptions for basic and premium services, $16,700 was due to increases in
other revenue producing items and $15,900 was due to the restructuring of The
Disney Channel from a premium channel to a tier channel effective July 1, 1996.
Of the $277,600 increase in revenues for the six months ended June 30, 1997 as
compared to the corresponding period in 1996, $125,800 was due to the increases
in regulated service rates, $79,200 was due to increases in the number of
subscriptions for basic and premium services, $41,200 was due to increases in
other revenue producing items and $31,400 was due to the restructuring of The
Disney Channel. As of June 30, 1997, the Partnership had approximately 7,300
homes subscribing to cable service and 1,700 premium service units.
-8-
<PAGE> 9
ENSTAR INCOME/GROWTH PROGRAM SIX-B, L.P.
RESULTS OF OPERATIONS (CONTINUED)
Service costs increased from $181,800 to $243,300, or by 33.8%, and
from $370,900 to $483,400, or by 30.3%, for the three and six months ended June
30, 1997 as compared to the corresponding periods in 1996. Service costs
represent costs directly attributable to providing cable services to customers.
The increase in both periods was primarily due to higher programming expense and
franchise fees, and decreased capitalization of labor and overhead costs
resulting from fewer capital projects. Programming expense increased primarily
as a result of higher rates charged by program suppliers and increases in the
number of subscriptions for services. Franchise fees increased in direct
relation to the increase in revenues discussed above.
General and administrative expenses decreased from $105,800 to
$101,900, or by 3.7%, and remained relatively unchanged, decreasing from
$203,700 to $202,000 (less than one percent), for the three and six months ended
June 30, 1997 as compared to the corresponding periods in 1996. These decreases
were primarily due to decreases in marketing expense and professional fees.
Management fees and reimbursed expenses increased from $57,900 to
$68,100, or by 17.6%, and from $112,100 to $134,400, or by 19.9%, for the three
and six months ended June 30, 1997 as compared to the corresponding periods in
1996. Management fees increased in direct relation to increased revenues as
described above. Reimbursed expenses increased primarily due to higher allocated
personnel costs.
Operating income before income taxes, depreciation and amortization
(EBITDA) is a commonly used financial analysis tool for measuring and comparing
cable television companies in several areas, such as liquidity, operating
performance and leverage. EBITDA as a percentage of revenues increased from
42.9% to 43.2% and from 41.8% to 43.8% during the three and six months ended
June 30, 1997 compared to the corresponding periods in 1996. The change was
primarily due to increased revenues. EBITDA increased from $259,600 to $313,800,
or by 20.9%, and from $493,600 to $638,100, or by 29.3%, during the three and
six months ended June 30, 1997 as compared to the corresponding periods in 1996.
EBITDA should be considered in addition to and not as a substitute for net
income and cash flows determined in accordance with generally accepted
accounting principles as an indicator of financial performance and liquidity.
Depreciation and amortization expense increased from $224,600 to
$275,900, or by 22.8%, and from $436,200 to $547,100, or by 25.4%, for the three
and six months ended June 30, 1997 as compared to the corresponding periods in
1996, primarily due to a reduction, beginning in 1997, in the estimated
remaining life of existing plant, which is scheduled to be rebuilt in 1998 and
1999.
Operating income increased from $35,000 to $37,900, or by 8.3%, and
from $57,400 to $91,000, or by 58.5%, for the three and six months ended June
30, 1997 as compared to the corresponding periods in 1996, primarily due to
increases in revenues as described above.
Interest expense, net of interest income, decreased from $36,000 to
$29,300, or by 18.6%, and from $73,900 to $60,300, or by 18.4%, for the three
and six months ended June 30, 1997 as compared to the corresponding periods in
1996. The three and six months' decreases were primarily due to decreases in
average borrowings.
-9-
<PAGE> 10
ENSTAR INCOME/GROWTH PROGRAM SIX-B, L.P.
RESULTS OF OPERATIONS (CONCLUDED)
Due to the factors described above, the Partnership generated net
income of $8,600 and $30,700 for the three and six months ended June 30, 1997 as
compared with a net loss of $1,000 and $16,500 for the corresponding 1996
periods.
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
currently relies exclusively on the availability of cash generated from
operations to fund its ongoing expenses, debt service and capital requirements.
In general, these requirements involve expansion, improvement and upgrade of the
Partnership's existing cable systems. At times, the Partnership has supplemented
its cash flow by deferring payments due to the Corporate General Partner and its
affiliates.
As of the date of this Report, substantially all of the available
channel capacity in the Partnership's systems is being utilized and each of such
systems requires rebuilding. The desired rebuild program is presently estimated
to require aggregate capital expenditures of approximately $7.2 million,
although the majority of the total is not planned to be spent until 1998 and
1999. These rebuilds cover seven franchise areas in Georgia and are required by
two existing franchise agreements. The cost to rebuild the two franchise areas
is estimated to be approximately $1.8 million and must be completed by February
1999. Two of the remaining five franchise agreements are under negotiation for
renewal. The Partnership's management believes that the Partnership's cash flow
and other sources of capital will be adequate to meet its current liquidity
requirements in 1997, which include necessary capital expenditures of
approximately $687,000 ($223,000 of which is to extend the Partnership's systems
to pass new serviceable homes in their franchise areas). To incur this level of
capital expenditures, however, the Partnership will be required to continue to
defer the payment of a portion of its previously deferred management fees. As of
June 30, 1997, the Partnership owed the Corporate General Partner $654,200 for
deferred management fees and reimbursable expenses, and also owed an affiliate
in excess of $450,400 for programming fees. Failure to rebuild the cable systems
in a timely fashion could have a material adverse effect on the value of those
systems compared to systems that have been rebuilt to a higher technical
standard.
The Partnership's term loan agreement restricts capital expenditures to
$700,000 in 1996 and thereafter. Funding rebuild capital expenditures beyond
1997 will, therefore, most likely require refinancing of the Partnership's
credit arrangements. Refinancing will be required in order for the Partnership
to perform substantially all of its planned rebuild construction, although
refinancing alone may still not permit all the rebuilds to be completed due to
limitations on indebtedness imposed by the partnership agreement, which is
discussed below.
In an effort to obtain the necessary capital, the Corporate General
Partner has engaged in discussions with a number of possible financing sources
regarding the availability and terms of a replacement bank facility for the
Partnership. These discussions have to date not been successful. The Corporate
General Partner has generally been advised that an individual facility of the
size needed by the Partnership is too
-10-
<PAGE> 11
ENSTAR INCOME/GROWTH PROGRAM SIX-B, L.P.
LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)
small to interest most banks which lend to the cable television industry.
Accordingly, on June 6, 1997, the Corporate General Partner and an affiliated
partnership formed Enstar Finance Company, LLC ("EFC"). The Corporate General
Partner's objective is to have EFC obtain a secured bank facility of up to $35
million in order to provide funds that would in turn be advanced to the
Partnership and certain of the other related partnerships managed by the
Corporate General Partner. Such funds would be used to repay existing bank
obligations and other liabilities of such partnerships and to provide capital to
fund future rebuild and upgrade requirements. Based on discussions with
prospective lenders, the Corporate General Partner believes that this structure,
if implemented, will provide capital to the Partnership on terms more favorable
than could be obtained on a "stand-alone" basis. Any advances by EFC will be
independently collateralized by the individual partnership borrowers so that no
partnership will be required to accept responsibility for borrowings made to
other partnerships. The Corporate General Partner has received a commitment
letter from two agent banks regarding the terms of a bank facility for EFC,
although a definitive credit agreement has not been executed as of the date of
this Report. The Corporate General Partner presently expects the EFC facility to
be completed in the third quarter and, accordingly, contemplates that a loan
will be made by EFC to the Partnership that will repay the existing facility.
On June 30, 1997, the outstanding balance of the Partnership's term
loan was $1,077,100, payable in quarterly installments ranging from $105,700 to
$161,000, plus interest. The term loan agreement requires principal payments of
$422,800 in 1997, $543,600 in 1998 and $322,000 in 1999. The Partnership made
its first and second scheduled principal repayments of 1997 on April 9 and June
30, respectively.
The Partnership's term loan agreement contains certain financial tests
and other covenants including, among others, restrictions relating to
acquisitions of cable systems and capital expenditures. The Partnership believes
that it was in compliance with its debt covenants as of June 30, 1997.
The partnership agreement provides that without the approval of a
majority of interests of limited partners, the Partnership may not incur any
borrowings unless the amount of such borrowings together with all outstanding
borrowings does not exceed 33% of the original capital raised by the
Partnership, or a maximum of $3,052,500 permitted debt outstanding. As discussed
above, in order to obtain the appropriate amount of capital to rebuild and
upgrade the Partnership's systems, this provision of the partnership agreement
would need to be amended to increase the Partnership's leverage. There can be no
assurance that the Partnership will be able to effect such an amendment to the
partnership agreement.
As previously disclosed, in response to the FCC's amended rate
regulation rules and the Partnership's capital expenditure requirements,
distributions to Unitholders were discontinued in July 1994. As stated at the
time of the announcement of this decision, management believes that it is
critical for the Partnership to preserve its liquidity though the retention of
cash. As a result, and because of the pending rebuild requirements discussed
above, the Partnership does not anticipate paying distributions at any time in
the foreseeable future.
-11-
<PAGE> 12
ENSTAR INCOME/GROWTH PROGRAM SIX-B, L.P.
LIQUIDITY AND CAPITAL RESOURCES (CONCLUDED)
SIX MONTHS ENDED JUNE 30, 1997 AND 1996
Cash provided by operating activities increased by $371,300 from
$465,200 for the six months ended June 30, 1996 to $836,500 for the six months
ended June 30, 1997. This increase was primarily due to a $236,300 reduction in
receivable balances that resulted, in part, from an insurance settlement for
storm damage to the Partnership's Georgia cable systems. Partnership operations
generated $158,600 more cash in the first six months of 1997 after adding back
non-cash depreciation and amortization charges. The Partnership used $23,600
more cash for prepaid expenses and accounts payable due to differences in the
timing of payments.
The Partnership used $113,100 less cash in investing activities during
the six months ended June 30, 1997 than in the comparable six months of 1996 due
to a decrease of $101,600 in expenditures for tangible assets and a decrease of
$11,500 in expenditures for intangible assets. Financing activities used cash
totaling $657,800 in the first six months of 1997 as compared with the first
half of 1996 when financing activities provided cash of $153,200. The
Partnership used cash approximating $446,500 in the first six months of 1997 to
pay previously deferred amounts owed to the Corporate General Partner. In the
corresponding 1996 period, the Partnership deferred payment of $243,800 of
management fees and reimbursable expenses charged to the Partnership by the
Corporate General Partner. The Partnership also used $125,700 more cash in the
1997 period for the repayment of debt. In the first six months of 1996, the
Partnership used $5,000 more cash than in the comparable 1997 period for the
payment of deferred loan costs related to a 1996 loan amendment.
INFLATION
Certain of the Partnership's expenses, such as those for equipment
repair and replacement, 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.
-12-
<PAGE> 13
ENSTAR INCOME/GROWTH PROGRAM SIX-B, 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 for 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-B, L.P.
a GEORGIA LIMITED PARTNERSHIP
-----------------------------
(Registrant)
By: ENSTAR COMMUNICATIONS CORPORATION
General Partner
Date: August 12, 1997 By: /s/ Michael K. Menerey
----------------------------
Michael K. Menerey,
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AT JUNE 30, 1997, AND THE STATEMENTS OF OPERATIONS FOR THE SIX MONTHS
ENDED JUNE 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 257,400
<SECURITIES> 0
<RECEIVABLES> 79,900
<ALLOWANCES> 3,700
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 6,465,000
<DEPRECIATION> 2,936,000
<TOTAL-ASSETS> 6,046,200
<CURRENT-LIABILITIES> 1,395,000
<BONDS> 1,077,100
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 6,046,200
<SALES> 0
<TOTAL-REVENUES> 1,457,900
<CGS> 0
<TOTAL-COSTS> 1,366,900
<OTHER-EXPENSES> (4,200)
<LOSS-PROVISION> 35,500
<INTEREST-EXPENSE> 64,500
<INCOME-PRETAX> 30,700
<INCOME-TAX> 0
<INCOME-CONTINUING> 30,700
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 30,700
<EPS-PRIMARY> 0.83
<EPS-DILUTED> 0
</TABLE>
