<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 March 31, 1999
[_] 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.
Exact name of registrant as specified in charter
Colorado 84-1060544
- --------------------------------------------------------------------------------
State of organization I.R.S. employer I.D. #
1500 Market Street, Philadelphia, PA 19102-2148
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Address of principal executive office
(215) 665-1700
-----------------------------
Registrant's telephone number
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
----- -----
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IDS/JONES GROWTH PARTNERS 87-A, LTD.
------------------------------------
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
------------------------
<TABLE>
<CAPTION>
March 31, December 31,
ASSETS 1999 1998
------ -------------- --------------
<S> <C> <C>
Cash $ 39,626 $ 27,485,016
Final working capital adjustment receivable 156,835 -
-------------- --------------
Total assets $ 196,461 $ 27,485,016
============== ==============
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
-------------------------------------------
LIABILITIES:
Accounts payable and accrued liabilities $ 196,461 $ 297,396
Accrued distributions - 27,436,365
-------------- --------------
Total liabilities 196,461 27,733,761
-------------- --------------
PARTNERS' CAPITAL:
General Partners-
Contributed capital 500 500
Accumulated earnings 2,043,080 2,043,080
Distributions (2,043,580) (2,043,580)
-------------- --------------
- -
Limited Partners-
Net contributed capital (164,178 units
outstanding at March 31, 1999 and
December 31, 1998) 35,824,200 35,824,200
Accumulated earnings 21,612,165 21,363,420
Distributions (57,436,365) (57,436,365)
-------------- --------------
- (248,745)
-------------- --------------
Total liabilities and partners' capital (deficit) $ 196,461 $ 27,485,016
============== ==============
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
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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
March 31,
--------------------------
1999 1998
---------- ----------
<S> <C> <C>
REVENUES $ - $2,031,874
COSTS AND EXPENSES:
Operating expenses - 1,188,584
Management fees and allocated overhead from
General Partners - 232,323
Depreciation and amortization - 336,198
---------- ----------
OPERATING INCOME - 274,769
---------- ----------
OTHER INCOME (EXPENSE):
Interest expense - (176,735)
Other, net 248,745 (7,513)
---------- ----------
Total other income (expense), net 248,745 (184,248)
---------- ----------
NET INCOME $ 248,745 $ 90,521
========== ==========
ALLOCATION OF NET INCOME:
General Partners $ - $ 905
========== ==========
Limited Partners $ 248,745 $ 89,616
========== ==========
NET INCOME PER LIMITED PARTNERSHIP UNIT $ 1.52 $ .55
========== ==========
WEIGHTED AVERAGE NUMBER OF LIMITED PARTNERSHIP
UNITS OUTSTANDING 164,178 164,178
========== ==========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
3
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IDS/JONES GROWTH PARTNERS 87-A, LTD.
------------------------------------
(A Limited Partnership)
UNAUDITED STATEMENTS OF CASH FLOWS
----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended
March 31,
------------------------------
1999 1998
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 248,745 $ 90,521
Adjustments to reconcile net income to net cash provided
by (used in) operating activities:
Depreciation and amortization - 336,198
Decrease in trade receivables - 140,709
Increase in final working capital adjustment receivable (156,835) -
Increase in deposits, prepaid expenses and other assets - (10,304)
Decrease in accounts payable and accrued liabilities and
subscriber prepayments (100,935) (149,073)
Decrease in Managing General Partner advances - (188,481)
------------ ------------
Net cash provided by (used in) operating activities (9,025) 219,570
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment, net - (359,343)
------------ ------------
Net cash used in investing activities - (359,343)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings - 20,204
Distribution to Limited Partners (27,436,365) -
------------ ------------
Net cash provided by (used in) financing activities (27,436,365) 20,204
------------ ------------
Decrease in cash (27,445,390) (119,569)
Cash, beginning of period 27,485,016 612,953
------------ ------------
Cash, end of period $ 39,626 $ 493,384
------------ ------------
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ - $ 236,763
------------ ------------
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
4
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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 complete 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 March 31, 1999 and December 31, 1998 and its
Statements of Operations and Cash Flows for the three month periods ended March
31, 1999 and 1998.
The Partnership owned and operated the cable television system serving the
areas in and around Roseville, California (the "Roseville System") until its
sale to an affiliate of Comcast Corporation ("Comcast") in December 1998. The
Roseville System represented the only remaining operating asset of the
Partnership. The Partnership settled final working capital adjustments in April
1999 and it is expected to be liquidated and dissolved in the second quarter of
1999.
On April 7, 1999, Comcast completed the acquisition of a controlling
interest in Jones Intercable, Inc. ("Intercable"). Comcast now owns
approximately 12.8 million shares of Intercable's Class A Common Stock and
approximately 2.9 million shares of Intercable's Common Stock, representing
approximately 37% of the economic interest and 47% of the voting interest in
Intercable. Also on that date, Comcast contributed its shares in Intercable to
Comcast's wholly owned subsidiary, Comcast Cable Communications, Inc. ("Comcast
Cable"). The approximately 2.9 million shares of Common Stock of Intercable
owned by Comcast represents approximately 57% of the outstanding Common Stock,
which class of stock is entitled to elect 75% of the Board of Directors of
Intercable. As a result of this transaction, Intercable is now a consolidated
public company subsidiary of Comcast Cable.
Also on April 7, 1999, the bylaws of Intercable were amended to establish
the size of Intercable's Board of Directors as a range from eight to thirteen
directors and the board was reconstituted so as to have eight directors and the
following directors of Intercable resigned: Robert E. Cole, Josef J. Fridman,
James J. Krejci, James B. O'Brien, Raphael M. Solot, Robert Kearney, Howard O.
Thrall, Siim Vanaselja, Sanford Zisman and Glenn R. Jones. In addition, Donald
L. Jacobs resigned as a director elected by the holders of Class A Common Stock
and was elected by the remaining directors as a director elected by the holders
of Common Stock. The remaining directors elected the following persons to fill
the vacancies on the board created by such resignations: Ralph J. Roberts, Brian
L. Roberts, John R. Alchin, Stanley Wang and Lawrence S. Smith. All of the newly
elected directors, with the exception of Mr. Jacobs, are officers of Comcast.
Also on April 7, 1999, the following executive officers of Intercable resigned:
Glenn R. Jones, James B. O'Brien, Ruth E. Warren, Kevin P. Coyle, Cynthia A.
Winning, Elizabeth M. Steele, Wayne H. Davis and Larry W. Kaschinske. The
following persons were appointed as executive officers of Intercable on April 7,
1999: Ralph J. Roberts, Brian L. Roberts, Lawrence S. Smith, John R. Alchin and
Stanley Wang.
Comcast is principally engaged in the development, management and
operation of broadband cable networks and in the provision of content through
programming investments. Comcast Cable is principally engaged in the
development, management and operation of broadband cable networks. The address
of Comcast's principal office is 1500 Market Street, Philadelphia, Pennsylvania
19102-2148, which is also now the address of the principal office of Intercable
and of the Managing General Partner. The address of Comcast Cable's principal
office is 1201 Market Street, Suite 2201, Wilmington, Delaware 19801.
(2) Jones Cable Corporation (the "Managing General Partner"), a wholly owned
subsidiary of Intercable , managed the Partnership and received 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 month
periods ended March 31, 1999 and 1998 were $-0- and $101,594, respectively. The
Managing General Partner has not received and will not receive a management fee
after December 31, 1998.
5
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IDS Cable Corporation (the "Supervising General Partner") participated in
certain management decisions of the Partnership and received 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 month periods ended March 31, 1999 and 1998 were $-0- and $10,159,
respectively. The Supervising General Partner has not received and will not
receive a supervision fee after December 31, 1998.
The Partnership will continue to reimburse Intercable for certain
administrative expenses. These expenses represent the salaries and related
benefits paid for corporate personnel. Such personnel provide administrative,
accounting, tax, legal and investor relations services to the Partnership. Such
services, and their related costs, are necessary to the administration of the
Partnership. Reimbursements made to Intercable by the Partnership for overhead
and administrative expenses during the three month periods ended March 31, 1999
and 1998 were $4,877 and $120,570, respectively.
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 overhead and
administrative expenses during the three month periods ended March 31, 1999 and
1998.
6
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IDS/JONES GROWTH PARTNERS 87-A, LTD.
------------------------------------
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
FINANCIAL CONDITION
- -------------------
On December 31, 1998, the Partnership sold the Roseville System to an
affiliate of Comcast. The Partnership settled final working capital adjustments
in April 1999 and is expected to be liquidated and dissolved in the second
quarter of 1999.
RESULTS OF OPERATIONS
- ---------------------
Due to the Partnership's sale of the Roseville System on December 31,
1998, which was the Partnership's last remaining operating asset, a discussion
of financial condition and results of operations would not be meaningful.
7
<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
Report on Form 8-K dated December 31, 1998, filed in January
1999, reported that on December 31, 1998, the Partnership sold its Roseville
System to an affiliate of Comcast Corporation for a sales price of $40,000,000
subject to customary closing adjustments.
8
<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/ Lawrence S. Smith
------------------------------------
Lawrence S. Smith
Principal Accounting Officer
By: /s/ Joseph J. Euteneuer
------------------------------------
Joseph J. Euteneuer
Vice President (Authorized Officer)
Dated: May 14, 1999
9
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 39,626
<SECURITIES> 0
<RECEIVABLES> 156,835
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 196,461
<CURRENT-LIABILITIES> 196,461
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 196,461
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> (248,745)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 248,745
<INCOME-TAX> 0
<INCOME-CONTINUING> 248,745
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 248,745
<EPS-PRIMARY> 1.52
<EPS-DILUTED> 1.52
</TABLE>
