<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark one)
[x] Quarterly report pursuant to section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended June 30, 1996.
-------------
[ ] 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 0-17733
CABLE TV FUND 15-A, LTD.
- --------------------------------------------------------------------------------
Exact name of registrant as specified in charter
Colorado #84-1091413
- --------------------------------------------------------------------------------
State of organization I.R.S. employer I.D.#
9697 East Mineral Avenue, P.O. Box 3309, Englewood, Colorado 80155-3309
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Address of principal executive office
(303) 792-3111
----------------------------------
Registrant's telephone number
Indicate by check mark whether the registrant (l) has filed all reports required
to be filed by Section l3 or l5(d) of the Securities Exchange Act of l934 during
the preceding l2 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
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CABLE TV FUND 15-A, LTD.
------------------------
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
------------------------
<TABLE>
<CAPTION>
June 30, December 31,
ASSETS 1996 1995
------ ------------- -------------
<S> <C> <C>
CASH $ 646,724 $ 58,719
TRADE RECEIVABLES, less allowance for doubtful
receivables of $79,927 and $132,431 at June 30, 1996
and December 31, 1995, respectively 830,496 965,495
INVESTMENT IN CABLE TELEVISION PROPERTIES:
Property, plant and equipment, at cost 76,910,057 74,582,334
Less- accumulated depreciation (35,399,735) (32,507,403)
------------ ------------
41,510,322 42,074,931
Franchise costs and other intangible assets, net of
accumulated amortization of $94,716,271 and
$87,030,946 at June 30, 1996 and December 31, 1995,
respectively 25,106,701 32,782,026
------------ ------------
Total investment in cable television properties 66,617,023 74,856,957
DEPOSITS, PREPAID EXPENSES AND DEFERRED CHARGES 1,133,016 1,246,638
------------ ------------
Total assets $ 69,227,259 $ 77,127,809
============ ============
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
2
<PAGE>
CABLE TV FUND 15-A, LTD.
------------------------
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
------------------------
<TABLE>
<CAPTION>
June 30, December 31,
LIABILITIES AND PARTNERS' DEFICIT 1996 1995
- --------------------------------- -------------- -------------
<S> <C> <C>
LIABILITIES:
Debt $ 84,276,621 $ 78,818,284
Accounts payable - General Partner - 4,782,507
Trade accounts payable and accrued liabilities 1,335,997 1,825,707
Subscriber prepayments 104,280 96,991
------------- ------------
Total liabilities 85,716,898 85,523,489
------------- ------------
PARTNERS' DEFICIT:
General Partner-
Contributed capital 1,000 1,000
Accumulated deficit (1,084,532) (1,003,592)
------------- ------------
(1,083,532) (1,002,592)
------------- ------------
Limited Partners-
Net contributed capital (213,174 units
outstanding at June 30, 1996
and December 31, 1995) 90,575,991 90,575,991
Accumulated deficit (105,982,098) (97,969,079)
------------- ------------
(15,406,107) (7,393,088)
------------- ------------
Total liabilities and partners' deficit $ 69,227,259 $ 77,127,809
============= ============
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
3
<PAGE>
CABLE TV FUND 15-A, LTD.
------------------------
(A Limited Partnership)
UNAUDITED STATEMENTS OF OPERATIONS
----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended For the Six Months Ended
June 30, June 30,
-------------------------- -----------------------
1996 1995 1996 1995
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
REVENUES $ 9,267,555 $ 8,650,678 $18,153,666 $16,766,408
COSTS AND EXPENSES:
Operating expenses 5,285,074 4,836,797 10,346,392 9,636,729
Management fees and allocated overhead
from General Partner 1,044,784 992,218 2,093,345 2,024,465
Depreciation and amortization 5,319,003 5,653,481 10,634,889 11,286,707
----------- ----------- ----------- -----------
OPERATING LOSS (2,381,306) (2,831,818) (4,920,960) (6,181,493)
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE):
Interest expense (1,481,700) (1,651,343) (3,020,536) (3,372,878)
Other, net (88,325) (97,783) (152,463) (101,518)
----------- ----------- ----------- -----------
Total other income (expense) (1,570,025) (1,749,126) (3,172,999) (3,474,396)
----------- ----------- ----------- -----------
NET LOSS $(3,951,331) $(4,580,944) $(8,093,959) $(9,655,889)
=========== =========== =========== ===========
ALLOCATION OF NET LOSS:
General Partner $ (39,513) $ (45,809) $ (80,940) $ (96,559)
=========== =========== =========== ===========
Limited Partners $(3,911,818) $(4,535,135) $(8,013,019) $(9,559,330)
=========== =========== =========== ===========
NET LOSS PER LIMITED
PARTNERSHIP UNIT $(18.35) $(21.27) $(37.59) $(44.84)
=========== =========== =========== ===========
WEIGHTED AVERAGE NUMBER
OF LIMITED PARTNERSHIP
UNITS OUTSTANDING 213,174 213,174 213,174 213,174
=========== =========== =========== ===========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
4
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CABLE TV FUND 15-A, LTD.
------------------------
(A Limited Partnership)
UNAUDITED STATEMENTS OF CASH FLOWS
----------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended
June 30,
--------------------------
1996 1995
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(8,093,959) $(9,655,889)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization 10,634,889 11,286,707
Amortization of interest rate protection contract 37,692 37,692
Decrease (increase) in trade receivables 134,999 (91,001)
Decrease in deposits, prepaid expenses and
deferred charges 18,698 156,529
Decrease in trade accounts payable, accrued liabilities
and subscriber prepayments (482,421) (88,116)
----------- -----------
Net cash provided by operating activities 2,249,898 1,645,922
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (2,327,723) (2,566,103)
Franchise renewal (10,000) -
----------- -----------
Net cash used in investing activities (2,337,723) (2,566,103)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings 5,543,193 7,038,358
Repayment of debt (84,856) (76,803)
Purchase of interest rate protection contract - (150,750)
Decrease in advances from General Partner (4,782,507) (5,759,616)
----------- -----------
Net cash provided by financing activities 675,830 1,051,189
----------- -----------
Increase in cash 588,005 131,008
Cash, beginning of period 58,719 26,010
----------- -----------
Cash, end of period $ 646,724 $ 157,018
=========== ===========
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ 2,798,838 $ 3,271,465
=========== ===========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
5
<PAGE>
CABLE TV FUND 15-A, LTD.
------------------------
(A Limited Partnership)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
---------------------------------------
(1) This Form 10-Q is being filed in conformity with the SEC requirements for
unaudited financial statements and does not contain all of the necessary
footnote disclosures required for a fair presentation of the Balance Sheets
and Statements of Operations and Cash Flows in conformity with generally
accepted accounting principles. However, in the opinion of management,
this data includes all adjustments, consisting only of normal recurring
accruals, necessary to present fairly the financial position of Cable TV
Fund 15-A, Ltd. (the "Partnership") at June 30, 1996 and December 31, 1995,
its Statements of Operations for the three and six month periods ended June
30, 1996 and 1995 and its Statements of Cash Flows for the six month
periods ended June 30, 1996 and 1995. Results of operations for these
periods are not necessarily indicative of results to be expected for the
full year.
The Partnership owns and operates the cable television systems serving the
areas in and around Barrington, Elgin, South Elgin, Hawthorn Woods, Kildeer,
Lake Zurich, Indian Creek, Vernon Hills and certain unincorporated areas of Kane
and Lake Counties, all in the State of Illinois (the "Barrington System") and
the cable television system serving the areas in and around Flossmoor, La
Grange, La Grange Park, Riverside, Indianhead Park, Hazel Crest, Thornton,
Lansing, Matteson, Richton Park, University Park, Crete, Olympia Fields and
Western Springs, all in the State of Illinois (the "South Suburban System").
(2) Jones Intercable, Inc. ("Intercable"), a publicly held Colorado
corporation, is the "General Partner" and manages the Partnership and
receives a fee for its services equal to 5 percent of the gross revenues of
the Partnership, excluding revenues from the sale of cable television
systems or franchises. Management fees paid to the General Partner by the
Partnership for the three and six month periods ended June 30, 1996 were
$463,377 and $907,683, respectively, compared to $432,534 and $838,320,
respectively, for the similar 1995 periods.
The Partnership reimburses the General Partner for certain allocated
overhead and administrative expenses. These expenses represent the salaries and
related benefits paid for corporate personnel, rent, data processing services
and other corporate facilities costs. Such personnel provide engineering,
marketing, administrative, accounting, legal and investor relations services to
the Partnership. Allocations of personnel costs are based primarily on actual
time spent by employees of the General Partner with respect to each partnership
managed. Remaining expenses are allocated based on the pro rata relationship of
the Partnership's revenues to the total revenues of all systems owned or managed
by the General Partner and certain of its subsidiaries. Systems owned by the
General Partner and all other systems owned by partnerships for which Intercable
is the general partner are also allocated a proportionate share of these
expenses. The General Partner believes that the methodology used in allocating
overhead and administrative expenses is reasonable. Reimbursements by the
Partnership to the General Partner for allocated overhead and administrative
expenses for the three and six month periods ended June 30, 1996 were $581,407
and $1,185,662, respectively, compared to $559,684 and $1,186,145, respectively,
for the similar 1995 periods.
6
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CABLE TV FUND 15-A, LTD.
------------------------
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
FINANCIAL CONDITION
- -------------------
It is the General Partner's publicly announced policy that it intends to
liquidate its managed limited partnerships, including the Partnership, as
opportunities for sales of partnership cable television systems arise in the
marketplace over the next several years. In accordance with the General
Partner's policy, it has begun to solicit buyers for the Partnership's
Barrington System and South Suburban System. There is no assurance as to the
timing or terms of any sales.
For the six months ended June 30, 1996, the Partnership generated net cash
from operating activities totaling approximately $2,250,000, which is available
to fund capital expenditures and non-operating costs. Capital expenditures
totaled approximately $2,328,000 during the first six months of 1996.
Approximately 55 percent of these expenditures were for service drops to homes.
New plant construction accounted for approximately 15 percent and approximately
12 percent related to the rebuild and upgrade of portions of the Partnership's
systems. The remaining expenditures were for various enhancements in the
Partnership's systems. Funding for these expenditures was provided by cash
generated from operations and borrowings under the Partnership's revolving
credit facility. Budgeted capital expenditures for the remainder of 1996 are
approximately $4,154,000. Approximately 32 percent of the remaining capital
expenditures will be for service drops to homes. Approximately 25 percent of
these remaining capital expenditures will be for new plant construction, and
approximately 14 percent will be to continue the rebuild and upgrade of portions
of the Partnership's systems. The remainder of the anticipated expenditures are
for various enhancements in the Partnership's systems. These capital
expenditures are necessary to maintain the value of the Partnership's systems.
Funding for these expenditures is expected to be provided by cash generated from
operations and borrowings available under the Partnership's revolving credit
facility.
On March 28, 1996, the Partnership amended its revolving credit facility to
provide for a maximum of $90,000,000 in available borrowings and to extend the
revolving credit period to September 30, 1997. At June 30, 1996, $84,000,000
was outstanding under the Partnership's revolving credit facility, leaving
$6,000,000 of available borrowings. Interest is at the Partnership's option of
the Prime Rate plus 1/2 percent, the London Interbank Offered Rate plus 1-1/2
percent or the Certificate of Deposit Rate plus 1-5/8 percent. The effective
interest rates on outstanding obligations as of June 30, 1996 and 1995 were 7.04
percent and 7.62 percent, respectively.
The Partnership has sufficient sources of capital in the form of borrowings
available under its revolving credit facility and cash generated from operations
to meet its presently anticipated liquidity and capital needs.
RESULTS OF OPERATIONS
- ---------------------
Revenues of the Partnership increased $616,877, or approximately 7
percent, to $9,267,555 for the three month period ended June 30, 1996 from
$8,650,678 for the comparable 1995 period. Revenues of the Partnership
increased $1,387,258, or approximately 8 percent, to $18,153,666 for the six
month period ended June 30, 1996 compared to $16,766,408 for the comparable 1995
period. An increase in the number of basic service subscribers combined with
basic service rate increases implemented in the Partnership's systems primarily
accounted for the increase in revenues. The increase in the number of basic
service subscribers accounted for approximately 40 percent and 46 percent,
respectively, of the increase in basic service revenues for the three and six
months ended June 30, 1996. Basic service rate increases accounted for
approximately 60 percent and 54 percent for the comparable 1995 periods. The
Partnership has added approximately 4,649 basic service subscribers since June
30, 1995. At June 30, 1996, the Partnership's systems had 81,236 basic
subscribers compared to 76,587 basic service subscribers at June 30, 1995, an
increase of approximately 6 percent. No other individual factors were
significant to the increases in revenues.
Operating expenses consist primarily of costs associated with the
administration of the Partnership's cable television systems. The principal
cost components are salaries paid to system personnel, programming expenses,
7
<PAGE>
professional fees, subscriber billing costs, rent for leased facilities, cable
system maintenance expenses and consumer marketing expenses.
Operating expenses increased $448,277, or approximately 9 percent, to
$5,285,074 for the three month period ended June 30, 1996 compared to $4,836,797
for the comparable 1995 period. Operating expenses increased $709,663, or
approximately 7 percent, to $10,346,392 for the six month period ended June 30,
1996 compared to $9,636,729 for the comparable 1995 period. Operating expenses
represented approximately 57 percent and 56 percent, respectively, of revenues
for each of the three month periods ended June 30, 1996 and 1995, compared to
approximately 57 percent of revenues for each of the six month periods ended
June 30, 1996 and 1995. An increase in programming fees primarily accounted for
the increases in operating expenses. No other factor contributed significantly
to the increase in operating expenses.
Management fees and allocated overhead from the General Partner increased
$52,566, or approximately 5 percent, to $1,044,784 for the three month period
ended June 30, 1996 compared to $992,218 for the comparable 1995 period.
Management fees and allocated overhead from the General Partner increased
$68,880, or approximately 3 percent, to $2,093,345 for the six month period
ended June 30, 1996 compared to $2,024,465 for the comparable 1995 period.
These increases were due to the increase in revenues, upon which such fees and
allocations are based.
Depreciation and amortization expense decreased $334,478, or approximately
6 percent, to $5,319,003 for the three month period ended June 30, 1996 compared
to $5,653,481 for the comparable 1995 period. Depreciation and amortization
expense decreased $651,818, or approximately 6 percent, to $10,634,889 for the
six month period ended June 30, 1996 compared to $11,286,707 for the comparable
1995 period. These decreases were due to the maturation of the Partnership's
depreciable asset base.
Operating loss decreased $450,512, or approximately 16 percent, to
$2,381,306 for the three month period ended June 30, 1996 compared to $2,831,818
for the comparable 1995 period. Operating loss decreased $1,260,533, or
approximately 20 percent, to $4,920,960 for the six month period ended June 30,
1996 compared to $6,181,493 for the comparable 1995 period. These decreases
were the result of increases in revenues and decreases in depreciation and
amortization expense exceeding the increases in operating expenses and
management fees and allocated overhead from the General Partner.
The cable television industry generally measures the financial performance
of a cable television system in terms of cash flow or operating income before
depreciation and amortization. The value of a cable television system is often
determined using multiples of cash flow. This measure is not intended to be a
substitute or improvement upon the items disclosed on the financial statements,
rather it is included because it is an industry standard. Operating income
before depreciation and amortization increased $116,034, or approximately 4
percent, to $2,937,697 for the three month period ended June 30, 1996 compared
to $2,821,663 for the comparable 1995 period. Operating income before
depreciation and amortization increased $608,715, or approximately 12 percent,
to $5,713,929 for the six month period ended June 30, 1996 from $5,105,214 for
the similar 1995 period. These increases were due to increases in revenues
exceeding the increases in operating expenses and management fees and allocated
overhead from the General Partner.
Interest expense decreased $169,643, or approximately 10 percent, to
$1,481,700 for the three month period ended June 30, 1996 compared to $1,651,343
for the comparable 1995 period. Interest expense decreased $352,342, or
approximately 10 percent, to $3,020,536 for the six month period ended June 30,
1996 from $3,372,878 for the comparable 1995 period. These decreases were due
to lower effective interest rates on interest bearing obligations.
Net loss decreased $629,613, or approximately 14 percent, to $3,951,331 for
the three month period ended June 30, 1996 from $4,580,944 for the comparable
1995 period. Net loss decreased $1,561,930, or approximately 16 percent, to
$8,093,959 for the six month period ended June 30, 1996 from $9,655,889 for the
comparable 1995 period. These decreases were due to the factors discussed
above. These losses are expected to continue in the future.
8
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits
27) Financial Data Schedule
b) Reports on Form 8-K
None
9
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CABLE TV FUND 15-A, LTD.
BY: JONES INTERCABLE, INC.
General Partner
By: /S/ Kevin P. Coyle
----------------------------
Kevin P. Coyle
Group Vice President/Finance
(Principal Financial Officer)
Dated: August 14, 1996
10
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 646,724
<SECURITIES> 0
<RECEIVABLES> 830,496
<ALLOWANCES> (79,927)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 76,910,057
<DEPRECIATION> (35,399,735)
<TOTAL-ASSETS> 69,227,259
<CURRENT-LIABILITIES> 1,440,277
<BONDS> 84,276,621
0
0
<COMMON> 0
<OTHER-SE> (15,406,107)
<TOTAL-LIABILITY-AND-EQUITY> 69,227,259
<SALES> 0
<TOTAL-REVENUES> 18,153,666
<CGS> 0
<TOTAL-COSTS> 23,074,626
<OTHER-EXPENSES> 152,463
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,020,536
<INCOME-PRETAX> (8,093,959)
<INCOME-TAX> 0
<INCOME-CONTINUING> (8,093,959)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (8,093,959)
<EPS-PRIMARY> (37.59)
<EPS-DILUTED> (37.59)
</TABLE>
