<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 September 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: 0-16183
- --------------------------------------------------------------------------------
IDS/JONES GROWTH PARTNERS 87-A, LTD.
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Exact name of registrant as specified in charter
Colorado 84-1060544
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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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IDS/JONES GROWTH PARTNERS 87-A, LTD.
------------------------------------
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
------------------------
<TABLE>
<CAPTION>
September 30, December 31,
ASSETS 1996 1995
------ -------------- -------------
<S> <C> <C>
CASH $ 164,357 $ 557,506
TRADE RECEIVABLES, less allowance for doubtful
receivables of $42,968 and $24,428 at
September 30, 1996 and December 31, 1995,
respectively 277,727 623,890
INVESTMENT IN CABLE TELEVISION PROPERTIES:
Property, plant and equipment, at cost 16,085,741 35,421,532
Less- accumulated depreciation (7,098,755) (15,195,244)
---------- ------------
8,986,986 20,226,288
Franchise costs and other intangible assets, net of
accumulated amortization of $12,425,371 and $24,675,391
at September 30, 1996 and December 31, 1995, respectively 2,676,178 14,397,338
---------- -----------
Total investment in cable television properties 11,663,164 34,623,626
DEPOSITS, PREPAID EXPENSES AND DEFERRED CHARGES 320,565 355,352
---------- -----------
Total assets $12,425,813 $36,160,374
========== ===========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
2
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IDS/JONES GROWTH PARTNERS 87-A, LTD.
------------------------------------
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
------------------------
<TABLE>
<CAPTION>
September 30, December 31,
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) 1996 1995
------------------------------------------- --------------- --------------
<S> <C> <C>
LIABILITIES:
Debt $ 9,850,000 $ 22,981,227
Accounts payable - Managing General Partner - 448,872
Trade accounts payable and accrued liabilities 103,758 984,610
Subscriber prepayments 29,387 45,438
------------ ------------
Total liabilities 9,983,145 24,460,147
------------ ------------
PARTNERS' CAPITAL (DEFICIT):
General Partners-
Contributed capital 500 500
Accumulated deficit (4,039) (245,844)
------------ ------------
(3,539) (245,344)
------------ ------------
Limited Partners-
Net contributed capital
(164,178 units outstanding at
September 30, 1996 and
December 31, 1995) 35,824,200 35,824,200
Accumulated deficit (3,377,993) (23,878,629)
Distributions (30,000,000) -
------------ ------------
2,446,207 11,945,571
------------ ------------
Total liabilities and partners'
capital (deficit) $ 12,425,813 $ 36,160,374
============ ============
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
3
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IDS/JONES GROWTH PARTNERS 87-A, LTD.
------------------------------------
(A Limited Partnership)
UNAUDITED STATEMENTS OF OPERATIONS
----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
-------------------------- --------------------------
1996 1995 1996 1995
---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
REVENUES $1,820,069 $3,670,797 $ 6,649,872 $10,689,958
COSTS AND EXPENSES:
Operating expenses 1,084,676 2,039,597 4,133,452 5,965,856
Management fees and allocated overhead
from General Partners 214,590 454,748 815,814 1,348,917
Depreciation and amortization 275,202 948,968 1,466,414 3,509,361
---------- ---------- ---------- -----------
OPERATING INCOME (LOSS) 245,601 227,484 234,192 (134,176)
---------- ---------- ---------- -----------
OTHER INCOME (EXPENSE):
Interest expense (163,629) (426,687) (585,258) (1,306,981)
Gain on sale of cable television system - - 21,096,325 -
Other, net (43,199) 1,561 (2,818) 2,656
---------- ---------- ----------- -----------
Total other income (expense) (206,828) (425,126) 20,508,249 (1,304,325)
---------- ---------- ----------- -----------
NET INCOME (LOSS) $ 38,773 $ (197,642) $20,742,441 $(1,438,501)
========== ========== =========== ===========
ALLOCATION OF NET INCOME (LOSS):
General Partners $ 388 (1,976) $ 241,805 $ (14,385)
========== ======= =========== ===========
Limited Partners $ 38,385 (195,666) $20,500,636 $(1,424,116)
========== ======= =========== ===========
NET INCOME (LOSS) PER LIMITED
PARTNERSHIP UNIT $ .23 (1.19) $ 124.87 $ (8.67)
========== ======= =========== ===========
WEIGHTED AVERAGE NUMBER OF LIMITED
PARTNERSHIP UNITS OUTSTANDING 164,178 164,178 164,178 164,178
========== ======= =========== ===========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
4
<PAGE>
IDS/JONES GROWTH PARTNERS 87-A, LTD.
------------------------------------
(A Limited Partnership)
UNAUDITED STATEMENTS OF CASH FLOWS
----------------------------------
<TABLE>
<CAPTION>
For the Nine Months Ended
September 30,
---------------------------
1996 1995
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 20,742,441 $(1,438,501)
Adjustments to reconcile net income (loss) to
net cash provided by (used in) operating activities:
Depreciation and amortization 1,466,414 3,509,361
Gain on sale of cable television system (21,096,325) -
Amortization of interest rate protection contract - 25,002
Decrease in trade receivables 346,163 30,505
Increase in deposits, prepaid expenses and
deferred charges (190,884) (183,836)
Decrease in trade accounts payable, accrued
liabilities and subscriber prepayments (896,903) (76,547)
Decrease in amount due Managing General Partner (448,872) (519,666)
------------ -----------
Net cash provided by (used in) operating activities (77,966) 1,346,318
------------ -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (1,419,289) (2,713,551)
Proceeds from sale of cable television system 44,235,333 -
------------ -----------
Net cash provided by (used in) investing activities 42,816,044 (2,713,551)
------------ -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings 9,895,965 1,368,638
Repayment of debt (23,027,192) (55,425)
Distribution to Limited Partners (30,000,000) -
------------ -----------
Net cash provided by (used in) financing activities (43,131,227) 1,313,213
------------ -----------
Decrease in cash (393,149) (54,020)
Cash, beginning of period 557,506 407,610
------------ -----------
Cash, end of period $ 164,357 $ 353,590
============ ===========
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ 878,928 $ 1,276,439
============ ===========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
5
<PAGE>
IDS/JONES GROWTH PARTNERS 87-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 IDS/Jones Growth Partners 87-A, Ltd.
(the "Partnership") at September 30, 1996 and December 31, 1995, its Statements
of Operations for the three and nine month periods ended September 30, 1996 and
1995 and its Statements of Cash Flows for the nine months ended September 30,
1996 and 1995. Results of operations for these periods are not necessarily
indicative of results to be expected for the full year. Certain prior year
amounts have been reclassified to conform to the 1996 presentation.
The Partnership owns and operates the cable television system serving the
areas in and around Roseville, California (the "Roseville System"). The
Partnership sold its cable television system serving the communities in and
around Carmel, Indiana (the "Carmel System") in February 1996, as discussed
below.
(2) Jones Cable Corporation (the "Managing General Partner"), a wholly owned
subsidiary of Jones Intercable, Inc. ("Intercable"), 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 Managing General Partner by the
Partnership for the three and nine month periods ended September 30, 1996 were
$91,003 and $332,494, respectively, compared to $183,540 and $534,498,
respectively, for the three and nine month periods ended September 30, 1995.
IDS Cable Corporation (the "Supervising General Partner") participates in
certain management decisions of the Partnership and receives a fee for its
services equal to one-half percent of the gross revenues of the Partnership,
excluding revenue from the sale of cable television systems or franchises.
Supervision fees paid to the Supervising General Partner by the Partnership for
the three and nine month periods ended September 30, 1996 were $9,100 and
$33,249, respectively, compared to $18,354 and $53,450, respectively, for the
three and nine month periods ended September 30, 1995.
The Partnership reimburses Intercable 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 Intercable with respect to each partnership managed.
Remaining overhead costs are allocated based on the pro rata relationship of the
Partnership's revenues to the total revenues of all systems owned or managed by
Intercable and certain of its affiliates. Systems owned by Intercable and all
other systems owned by partnerships for which Intercable is the general partner
are also allocated a proportionate share of these expenses. The Managing
General Partner believes that the methodology used in allocating overhead and
administrative expense is reasonable. Reimbursements made to Intercable by the
Partnership for allocated overhead and administrative expenses during the three
and nine month periods ended September 30, 1996 were $114,487 and $450,071,
respectively, compared to $252,854 and $760,969, respectively, for the three and
nine month periods ended September 30, 1995. The Supervising General Partner
also may be reimbursed for certain expenses incurred on behalf of the
Partnership. There were no reimbursements made to the Supervising General
Partner by the Partnership for allocated overhead and administrative expenses
during the three and nine month periods ended September 30, 1996 and 1995.
(3) On February 28, 1996, the Partnership sold the Carmel System to Jones Cable
Holdings, Inc. ("JCH"), a wholly owned subsidiary of Intercable, for a sales
price of $44,235,333, subject to normal working capital closing adjustments.
This price represented the average of three separate, independent appraisals of
the fair market value of the Carmel System. The proceeds were used to repay the
outstanding principal balance on the Partnership's term loan of $22,655,000, and
$30,000,000 was distributed to the limited partners in April 1996. This
distribution gave the Partnership's limited partners an approximate return of
$731 per $1,000 invested in the Partnership. No vote of the limited partners of
the Partnership was required in connection with this transaction because the
assets of the Carmel System did not constitute all or substantially all of the
Partnership's assets. The Supervising General Partner of the Partnership
consented to the timing of the transaction and participated in the selection of
appraisers.
The pro forma effect of the sale of the Carmel System on the results of the
Partnership's operations for the nine months ended September 30, 1996 and 1995,
assuming the transaction had occurred at the beginning of the year, is presented
in the following unaudited tabulation:
<TABLE>
<CAPTION>
For the Nine Months Ended September 30, 1996
---------------------------------------------------
Pro Forma
As Reported Adjustments Pro Forma
----------- ------------- ----------
<S> <C> <C> <C>
Revenues $ 6,649,872 $ (1,357,969) $5,291,903
=========== ============ ==========
Operating Income $ 234,192 $ 193,204 $ 427,396
=========== ============ ==========
Net Income (Loss) $20,742,441 $(20,779,193) $ (36,752)
=========== ============ ==========
</TABLE>
<TABLE>
<CAPTION>
For the Nine Months Ended September 30, 1995
-------------------------------------------------
Pro Forma
As Reported Adjustments Pro Forma
----------- ------------ ---------
<S> <C> <C> <C>
Revenues $10,689,958 $(5,960,176) $4,729,782
=========== =========== ==========
Operating Loss $ (134,176) $ (13,675) $ (147,851)
=========== =========== ==========
Net Loss $(1,438,501) $ 733,508 $ (704,993)
=========== =========== ==========
</TABLE>
(4) On October 14, 1996, the Partnership entered into an asset purchase
agreement pursuant to which it agreed to sell the Roseville System to an
unaffiliated party for $31,000,000, subject to normal closing adjustments.
Closing of the sale is subject to several closing conditions, including the
approval of the holders of a majority of the limited partnership interests in a
vote of limited partners to be conducted in the first half of 1997 and the
consents of governmental franchising authorities and other regulatory
authorities having jurisdiction. Upon closing of the sale of the Roseville
System, the Partnership will pay all of its indebtedness, which totaled
$9,850,000 at September 30, 1996, a brokerage fee of $387,500 to The Jones
Group, Ltd., an affiliate of the Managing General Partner, a brokerage fee of
$387,500 to IDS Management Corporation, an affiliate of the Supervising General
Partner, and then the Partnership will distribute the approximate $20,375,000
net proceeds to its limited partners. This distribution will give the
Partnership's limited partners an approximate return of $497 per $1,000 invested
in the Partnership. Taking into account the distributions made on the sale of
the Carmel System and the anticipated distribution to be made on the sale of the
Roseville System, the limited partners will have received a total of $1,228 for
each $1,000 invested in the Partnership. Because the limited partners will
receive total distributions that are less than 125 percent of their initial
capital contributions, the general partners of the Partnership will receive no
distributions from the sale of the Roseville System. Upon the completion of the
sale of the Roseville System, the Partnership will be liquidated and dissolved.
6
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(5) Certain prior year amounts have been reclassified to conform to the 1996
presentation.
7
<PAGE>
IDS/JONES GROWTH PARTNERS 87-A, LTD.
------------------------------------
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
FINANCIAL CONDITION
- -------------------
It is Intercable'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 Intercable's policy, the Carmel
System was sold in February 1996 and the Partnership has entered into an asset
purchase agreement to sell the Roseville System to an unaffiliated third party.
Upon the completion of the sale of the Roseville System, the Partnership will be
liquidated and dissolved.
Disregarding the effect of the Carmel System sale, for the nine months
ended September 30, 1996, the Partnership reported operating income before
depreciation and amortization of approximately $1,447,600. The Partnership
expended approximately $1,191,900 in capital improvements during the first nine
months of 1996. Of these improvements, approximately 72 percent related to the
construction of cable television plant. Approximately 36 percent related to
service drops to homes. The remaining expenditures related to various system
enhancements in each of the Partnership's systems. Funding for these
expenditures was provided by cash generated from operations and borrowings
available under the Partnership's credit facility. Budgeted capital
expenditures for the remainder of 1996 in the Roseville System are approximately
$246,000. Construction of system extensions will account for approximately 45
percent of these expenditures. Service drops to homes will account for
approximately 36 percent of the anticipated expenditures. The remainder of the
expenditures relate to various enhancements in the Roseville System. Funding
for these expenditures is expected to be provided by cash on hand, cash
generated from operations and, if necessary, borrowings available under the
Partnership's credit facility. These capital expenditures are necessary to
maintain the value of the Roseville System until it is sold.
On February 28, 1996, the Partnership sold the Carmel System to JCH for a
sales price of $44,235,333, subject to normal working capital closing
adjustments. This price represented the average of three separate, independent
appraisals of the fair market value of the Carmel System. The proceeds were
used to repay the outstanding principal balance of the Partnership's term loan
of $22,655,000, and $30,000,000 was distributed to the limited partners in April
1996. This distribution has given the Partnership's limited partners an
approximate return of $731 per $1,000 invested in the Partnership. No vote of
the limited partners of the Partnership was required in connection with this
transaction because the assets of the Carmel System did not constitute all or
substantially all of the Partnership's assets. The Supervising General Partner
of the Partnership consented to the timing of the transaction and participated
in the selection of appraisers.
On October 14, 1996, the Partnership entered into an asset purchase
agreement pursuant to which it agreed to sell the Roseville System to an
unaffiliated party for $31,000,000, subject to normal closing adjustments.
Closing of the sale is subject to several closing conditions, including the
approval of the holders of a majority of the limited partnership interests in a
vote of limited partners to be conducted in the first half of 1997 and the
consents of governmental franchising authorities and other regulatory
authorities having jurisdiction. Upon closing of the sale of the Roseville
System, the Partnership will pay all of its indebtedness, which totaled
$9,850,000 at September 30, 1996, a brokerage fee of $387,500 to The Jones
Group, Ltd., an affiliate of the Managing General Partner, a brokerage fee of
$387,500 to IDS Management Corporation, an affiliate of the Supervising General
Partner, and then the Partnership will distribute the approximate $20,375,000
net proceeds to its limited partners. This distribution will give the
Partnership's limited partners an approximate return of $497 per $1,000 invested
in the Partnership. Taking into account the distributions made on the sale of
the Carmel System and the anticipated distribution to be made on the sale of the
Roseville System, the limited partners will have received a total of $1,228 for
each $1,000 invested in the Partnership. Because the limited partners will
receive total distributions that are less than 125 percent of their initial
capital contributions, the general partners of the Partnership will receive no
distributions from the sale of the Roseville System. Upon the completion of the
sale of the Roseville System, the Partnership will be liquidated and dissolved.
When the Partnership sold its Carmel System, it used a portion of the sales
proceeds to repay its term loan's then-outstanding principal balance of
$22,655,000. Also on February 28, 1996, the Partnership entered into a new
reducing revolving credit agreement with a commitment up to $10,000,000. The
reducing revolving credit period expires December 31, 2003. The commitment
amount reduces quarterly, beginning September 30, 1999. In April 1996, the
Partnership re-borrowed approximately $9,100,000 available from the new
$10,000,000 revolving credit facility, which it used, together with cash on hand
from the sale of the Carmel System, to fund a $30,000,000 distribution to the
Partnership's limited partners in April 1996. At September 30, 1996, the
Partnership had $9,850,000 outstanding under the credit facility, leaving
$150,000 available for future borrowings. Interest on the new commitment is at
the Partnership's option of the Prime Rate or the London Interbank Offered Rate
plus 1-1/4 percent. The effective interest
8
<PAGE>
rates on amounts outstanding were 6.75 percent and 6.9 percent at September 30,
1996 and 1995, respectively. The credit facility will be repaid in full upon the
sale of the Roseville System.
RESULTS OF OPERATIONS
- ---------------------
Revenues of the Partnership decreased $1,850,728, or approximately 50
percent, to $1,820,069 for the three month period ended September 30, 1996 from
$3,670,797 for the similar period in 1995. Revenues decreased $4,040,086, or
approximately 38 percent, to $6,649,872 for the nine month period ended
September 30, 1996 from $10,689,958 for the similar period in 1995. These
decreases were due to the sale of the Carmel System. Disregarding the effect of
the Carmel System sale, revenues increased $163,790, or approximately 10
percent, to $1,820,069 for the three month period ended September 30, 1996 from
$1,656,279 for the period in 1995. Revenues increased $562,121, or
approximately 12 percent, to $5,291,903 for the nine month period ended
September 30, 1996 from $4,729,782 for the period in 1995. Increases in the
number of basic service subscribers in the Partnership's Roseville System
accounted for approximately 68 and 71 percent, respectively, of the increase in
basic service revenues for the three and nine month periods ended September 30,
1996. The number of basic service subscribers in the Roseville System increased
by 1,522 subscribers, or approximately 9 percent, to 17,575 subscribers at
September 30, 1996 from 16,053 subscribers for the similar period in 1995.
Basic service rate increases accounted for approximately 32 and 29 percent,
respectively, of the increase in basic service revenues for the three and nine
month periods ended September 30, 1996. No other single factor significantly
contributed to the increase 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,
professional fees, subscriber billing costs, rent for leased facilities, cable
system maintenance expenses and consumer marketing expenses.
Operating expenses decreased $954,921, or approximately 47 percent, to
$1,084,676 for the three month period ended September 30, 1996 from $ 2,039,597
for the similar period in 1995. Operating expenses decreased $1,832,404, or
approximately 31 percent, to $4,133,452 for the nine month period ended
September 30, 1996 from $5,965,856 for the similar period in 1995. Disregarding
the effect of the Carmel System sale, operating expenses increased $107,345, or
approximately 11 percent, to $1,082,685 for the three month period ended
September 30, 1996 from $975,340 for the similar period in 1995. Operating
expenses increased $330,853, or approximately 12 percent, to $3,197,850 for the
nine month period ended September 30, 1996 from $2,866,997 for the similar
period in 1995. These increases were primarily due to increases in programming
fees, which accounted for approximately 51 percent of the three month increase
and 47 percent of the nine month increase. No other single factor significantly
affected the increase in operating expenses. Operating expenses represented 59
percent of revenues for the three month periods ended September 30, 1996 and
1995, and 60 and 61 percent, respectively, for the nine month periods ended
September 30, 1996 and 1995.
Management fees and allocated overhead from the General Partners decreased
$240,158, or approximately 53 percent, to $214,590 for the three month period
ended September 30, 1996 from $454,748 for the similar period in 1995.
Management fees and allocated overhead from the General Partners decreased
$533,103, or approximately 40 percent, to $815,814 for the nine month period
ended September 30, 1996 from $1,348,917 for the similar period in 1995.
Disregarding the effect of the Carmel System sale, management fees and allocated
overhead from the General Partners increased $9,030, or approximately 4 percent,
to $214,590 for the three month period ended September 30, 1996 from $205,560
for the similar period in 1995. Management fees and allocated overhead from the
General Partner increased $51,575, or approximately 9 percent, to $646,431 for
the nine month period ended September 30, 1996 from $594,856 for the similar
period in 1995. These increases were due to the increases in revenues, upon
which such fees and allocations are based.
Depreciation and amortization expense decreased $673,766, or approximately
71 percent, to $275,202 for the three month period ended September 30, 1996 from
$948,968 for the similar period in 1995. Depreciation and amortization expense
decreased $2,042,947, or approximately 58 percent, to $1,466,414 for the nine
month period ended September 30, 1996 from $3,509,361 for the similar period in
1995. Disregarding the effect of the Carmel System sale, depreciation and
amortization expense decreased $20,756, or approximately 7 percent, to $275,201
for the three month period ended September 30, 1996 from $295,957 for the
similar period in 1995. Depreciation and amortization expense decreased
$395,554, or approximately 28 percent, to $1,020,226 for the nine month period
ended September 30, 1996 from $1,415,780 for the similar period in 1995. These
decreases were due to the maturation of the Partnership's asset base.
9
<PAGE>
The Partnership's operating income increased $18,117, or approximately 8
percent, to $245,601 for the three month period ended September 30, 1996 from
$227,484 for the similar period in 1995. The Partnership reported operating
income of $234,192 for the nine month period ended September 30, 1996 compared
to an operating loss of $134,176 for the similar period in 1995. Disregarding
the effect of the Carmel System sale, operating income increased $68,171, or
approximately 38 percent, to $247,593 for the three month period ended September
30, 1996 from $179,422 for the similar period in 1995. The Partnership reported
operating income of $427,396 for the nine month period ended September 30, 1996
compared to an operating loss of $147,851 for the similar period in 1995. These
changes were due to the 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 Partners.
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 decreased $655,649, or approximately 56
percent, to $520,803 for the three month period ended September 30, 1996 from
$1,176,452 for the period in 1995. Operating income before depreciation and
amortization expense decreased $1,674,579, or approximately 50 percent, to
$1,700,606 for the nine month period ended September 30, 1996 from $3,375,185
for the period in 1995. Disregarding the effect of the Carmel System sale,
operating income before depreciation and amortization increased $47,415, or
approximately 10 percent, to $522,794 for the three month period ended September
30, 1996 from $475,379 for the similar period in 1995. Operating income before
depreciation and amortization increased $179,693, or approximately 14 percent,
to $1,447,622 for the nine month period ended September 30, 1996 from $1,267,929
for the similar period in 1995. These increases were due to the increases in
revenues exceeding the increases in operating expenses and management fees and
allocated overhead from the General Partners.
Interest expense decreased $263,058, or approximately 62 percent, to
$163,629 for the three month period ended September 30, 1996 from $426,687 for
the similar period in 1995. Interest expense decreased $721,723, or
approximately 55 percent, to $585,258 for the nine month period ended September
30, 1996 from $1,306,981 for the similar period in 1995. These decreases in
interest expense were primarily due to the lower outstanding balance on the
Partnership's interest bearing obligations, as a result of a portion of the
proceeds from the sale of the Carmel System being used to repay the outstanding
loan principal balance of $22,655,000 on February 28, 1996.
The Partnership reported net income of $38,773 for the three months ended
September 30, 1996 compared to a net loss of $197,642 for the similar 1995
period. Net income totaled $20,742,441 for the nine months ended September 30,
1996 compared to a net loss of $1,438,501 for the similar 1995 period. Included
in net income for the nine months ended September 30, 1996 was a gain on the
sale of the Carmel System of $21,096,325. Disregarding the effect of the sale
of the Carmel System, the Partnership reported net income of $38,735 for the
three months ended September 30, 1996 compared to $26,939 for the similar 1995
period. For the nine month periods ended September 30, 1996 and 1995, the
Partnership reported net losses of $36,752 and $704,993, respectively. These
changes were due to the factors discussed above.
10
<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
11
<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.
IDS/JONES GROWTH PARTNERS 87-A, LTD.
BY: JONES CABLE CORPORATION
Managing General Partner
By: /S/ Kevin P. Coyle
----------------------------------------
Kevin P. Coyle
Group Vice President/Finance
(Principal Financial Officer)
Dated: November 13, 1996
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 164,357
<SECURITIES> 0
<RECEIVABLES> 277,727
<ALLOWANCES> (42,968)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 16,085,741
<DEPRECIATION> (7,098,755)
<TOTAL-ASSETS> 12,425,813
<CURRENT-LIABILITIES> 133,145
<BONDS> 9,850,000
0
0
<COMMON> 0
<OTHER-SE> 2,422,668
<TOTAL-LIABILITY-AND-EQUITY> 12,425,813
<SALES> 0
<TOTAL-REVENUES> 6,649,872
<CGS> 0
<TOTAL-COSTS> 6,415,680
<OTHER-EXPENSES> (21,093,507)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 585,258
<INCOME-PRETAX> 20,742,441
<INCOME-TAX> 0
<INCOME-CONTINUING> 20,742,441
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 20,742,441
<EPS-PRIMARY> 124.87
<EPS-DILUTED> 124.87
</TABLE>
