<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, 1997.
--------------
[ ] 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 0-19075
Jones Programming Partners 1-A, Ltd.
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Exact name of registrant as specified in charter
Colorado #84-1088820
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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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JONES PROGRAMMING PARTNERS 1-A, LTD.
------------------------------------
INDEX
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Page
Number
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PART I. FINANCIAL INFORMATION
<TABLE>
<CAPTION>
Item 1. Financial Statements
<S> <C>
Unaudited Statements of Financial Position
March 31, 1997 and December 31, 1996 3
Unaudited Statements of Operations
Three Months Ended March 31, 1997 and 1996 4
Unaudited Statements of Cash Flows
Three Months Ended March 31, 1997 and 1996 5
Notes to Unaudited Financial Statements
March 31, 1997 6-7
</TABLE>
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8-11
PART II. OTHER INFORMATION 12
2
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JONES PROGRAMMING PARTNERS 1-A, LTD.
------------------------------------
(A Limited Partnership)
UNAUDITED STATEMENTS OF FINANCIAL POSITION
------------------------------------------
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
------------ --------------
<S> <C> <C>
ASSETS
------
CASH AND CASH EQUIVALENTS $ 190,352 $ 266,452
RECEIVABLES:
Foreign income receivable 154,212 141,602
Domestic income receivable 36,146 77,573
INVESTMENT IN AND ADVANCES FOR FILM PRODUCTION,
net of accumulated amortization of $8,734,275 and $8,716,704
as of March 31, 1997 and December 31, 1996, respectively 152,931 170,502
OTHER ASSETS 705 1,092
----------- -----------
Total assets $ 534,346 $ 657,221
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
-------------------------------------------
LIABILITIES:
Accounts payable to affiliates $ 21,569 $ 15,600
Accrued distributions payable to partners - 160,897
Accrued liabilities 12,068 12,586
----------- -----------
Total liabilities 33,637 189,083
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UNEARNED REVENUE 60,000 -
----------- -----------
PARTNERS' CAPITAL (DEFICIT):
General partner -
Contributed capital 1,000 1,000
Distributions (40,831) (40,831)
Accumulated deficit (9,727) (9,453)
----------- -----------
Total general partner's deficit (49,558) (49,284)
----------- -----------
Limited partners -
Contributed capital, net of offering costs
(12,743 units outstanding as of March 31, 1997
and December 31, 1996) 5,459,327 5,459,327
Distributions (4,042,214) (4,042,214)
Accumulated deficit (926,846) (899,691)
----------- -----------
Total limited partners' capital 490,267 517,422
----------- -----------
Total partners' capital 440,709 468,138
----------- -----------
Total liabilities and partners' capital $ 534,346 $ 657,221
=========== ===========
</TABLE>
The accompanying notes to the unaudited financial statements
are an integral part of these unaudited financial statements.
3
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JONES PROGRAMMING PARTNERS 1-A, LTD.
------------------------------------
(A Limited Partnership)
UNAUDITED STATEMENTS OF OPERATIONS
----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended
March 31,
--------------------------
1997 1996
-------- --------
<S> <C> <C>
GROSS REVENUES $ 17,918 $ 81,118
COSTS AND EXPENSES:
Costs of filmed entertainment 17,571 61,805
Distribution fees and expenses 9,153 22,033
Operating, general and administrative expenses 20,451 10,857
-------- --------
Total costs and expenses 47,175 94,695
-------- --------
OPERATING LOSS (29,257) (13,577)
-------- --------
OTHER INCOME (EXPENSE):
Interest income 2,685 5,357
Other expense (857) -
-------- --------
Other income, net 1,828 5,357
-------- --------
NET LOSS $(27,429) $ (8,220)
======== ========
ALLOCATION OF NET LOSS:
General Partner $ (274) $ (82)
======== ========
Limited Partners $(27,155) $ (8,138)
======== ========
NET LOSS PER LIMITED
PARTNERSHIP UNIT $(2.13) $(.64)
======== ========
WEIGHTED AVERAGE NUMBER OF
LIMITED PARTNERSHIP UNITS
OUTSTANDING 12,743 12,743
======== ========
</TABLE>
The accompanying notes to the unaudited financial statements
are an integral part of these unaudited financial statements.
4
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JONES PROGRAMMING PARTNERS 1-A, LTD.
------------------------------------
(A Limited Partnership)
UNAUDITED STATEMENTS OF CASH FLOWS
----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended
March 31,
--------------------------
1997 1996
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (27,429) $ (8,220)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Amortization of filmed entertainment costs 17,571 61,805
Net change in assets and liabilities:
Increase in foreign income receivable (12,610) (34,623)
Decrease in domestic income receivable 41,427 15,000
Decrease in other assets 387 2,273
Net change in amounts due to/from affiliates 5,969 (511)
Increase (decrease) in accrued liabilities (518) 1,500
Increase in unearned revenue 60,000 -
--------- ---------
Net cash provided by operating activities 84,797 37,224
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net decrease in production advances - -
--------- ---------
Net cash provided by investing activities - -
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (160,897) (160,897)
--------- ---------
Net cash used in financing activities (160,897) (160,897)
--------- ---------
DECREASE IN CASH AND CASH EQUIVALENTS (76,100) (123,673)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 266,452 502,435
--------- ---------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 190,352 $ 378,762
========= =========
</TABLE>
The accompanying notes to the unaudited financial statements
are an integral part of these unaudited financial statements.
5
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JONES PROGRAMMING PARTNERS 1-A, LTD.
------------------------------------
(A Limited Partnership)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
---------------------------------------
(1) BASIS OF PRESENTATION
---------------------
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 Statements of
Financial Position 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 Jones Programming Partners 1-A, Ltd. (the "Partnership") as of
March 31, 1997 and December 31, 1996 and its results of operations and its
cash flows for the three month periods ended March 31, 1997 and 1996.
Results of operations for these periods are not necessarily indicative of
results to be expected for the full year.
(2) TRANSACTIONS WITH AFFILIATED ENTITIES
-------------------------------------
The General Partner is entitled to reimbursement from the Partnership for
its direct and indirect expenses allocable to the operations of the
Partnership, which shall include, but not be limited to, rent, supplies,
telephone, travel, legal expenses, accounting expenses, preparation and
distribution of reports to investors and salaries of any full or part-time
employees. Because the indirect expenses incurred by the General Partner on
behalf of the Partnership are immaterial, the General Partner generally
does not charge indirect expenses to the Partnership. The General Partner
charged $13,728 and $6,536 to the Partnership for direct expenses for the
three month periods ended March 31, 1997 and 1996, respectively.
(3) INVESTMENT IN AND ADVANCES FOR FILM PRODUCTION
----------------------------------------------
"The Little Kidnappers"
---------------------
In January 1990, the General Partner, on behalf of the Partnership, entered
into an agreement with Jones Maple Leaf Productions ("Maple Leaf") to
produce a full-length feature film for television entitled "The Little
Kidnappers." The total film cost was approximately $3,200,000. Of this
amount, the Partnership invested approximately $2,794,000, which included a
production and overhead fee of $300,000 paid to the General Partner. As of
March 31, 1997, the Partnership's net investment in the film, after
consideration of amortization, was $82,811. From inception to March 31,
1997, the Partnership has recognized approximately $2,911,000 of gross
revenue from this film, which includes the initial license fees of
approximately $1,365,000 from The Disney Channel and the Canadian
Broadcasting Corporation, which were used to finance the film's production.
As of March 31, 1997, $23,628 in net receivables was outstanding from the
film's distributors and licensees, with $5,040 received by the Partnership
in May 1997. The Partnership expects to receive the remaining $18,588 over
the next three to twenty-four months as collected by distributors.
"The Story Lady"
--------------
In April 1991, the General Partner, on behalf of the Partnership, entered
into an agreement with NBC Productions, Inc. ("NBC") for the production of
a full-length made-for-television film entitled "The Story Lady." The
total cost of the film was approximately $4,300,000. Of this amount, the
Partnership invested its share of $1,183,000 in return for world wide
distribution rights to this film, excluding United States and Canadian
broadcast television rights. Included in the total amount invested is a
production and overhead fee of $120,000 paid to the General Partner. In
December 1995, the Partnership fully recovered its remaining net investment
in the film. From inception to March 31, 1997, the Partnership has
recognized approximately $2,003,000 of revenue from this film. As of March
31, 1997, the Partnership had outstanding receivables from the film's
domestic and international distributors and licensees totaling $166,546.
The Partnership anticipates payment of these amounts over the next three to
twenty-four months as collected by distributors.
"Curacao"
-------
In October 1992, the General Partner, on behalf of the Partnership, entered
into an agreement with Showtime Networks, Inc. ("Showtime") for the
production of a full-length made-for-television film entitled "Curacao."
The total cost of the film was approximately $4,410,000. In addition to
the costs of production, the Partnership paid the General Partner $500,000
as a production and overhead fee for services rendered in connection with
arranging the Showtime pre-sale and supervising production of this picture.
As of March 31, 1997, the Partnership's net investment in the film, after
consideration of amortization was $70,120. From inception to March 31,
1997, the Partnership has recognized
6
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approximately $4,025,000 of gross revenue from this film, which includes
the initial license fee and home video advance from Showtime of $2,650,000,
which was used to finance the film's production. As of March 31, 1997, $184
in receivables was outstanding from the film's distributors. This amount
was received by the Partnership in May 1997.
7
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JONES PROGRAMMING PARTNERS 1-A, LTD.
------------------------------------
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
----------------------------------------
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
---------------------------------------------
FINANCIAL CONDITION
-------------------
Liquidity and Capital Resources
- -------------------------------
The Partnership's principal sources of liquidity are cash on hand and amounts
received from the domestic and international distribution of the Partnership's
programming. The Partnership had $190,352 in cash as of March 31, 1997. It is
not anticipated that the Partnership will invest in any additional programming
projects, but instead will focus on the distribution of its existing programming
projects. The Partnership had outstanding amounts receivable from unaffiliated
distributors totaling approximately $190,000 as of March 31, 1997. The foreign
income receivable of approximately $154,000 will be paid to the Partnership over
the next three to twenty-four months as collected by distributors. The domestic
income receivable of approximately $36,000 will be paid to the Partnership over
the next four months.
In February 1997, distributions for the quarter ending December 31, 1996 were
paid by the Partnership totaling $160,897. Distributions were made using cash
on hand, interest income and cash provided by operating activities. Given the
near completion of the second cycle distribution of the Partnership's
programming, quarterly distributions were suspended beginning with the quarter
ended March 31, 1997 and will continue to be suspended or substantially reduced
for the remainder of 1997. The Partnership will retain a certain level of
working capital, including any necessary reserves, to fund its operating
activities. Any amounts in excess of the Partnership's working capital needs
received from continued second cycle distribution of the Partnership's
programming may be periodically distributed to partners.
The General Partner, on behalf of the Partnership, will continue to manage and
arrange for the second cycle distribution of the Partnership's programming in
remaining unexploited territories and markets. In addition, the General
Partner, on behalf of the Partnership, engaged an independent public accounting
firm during 1996 for purposes of performing distribution audits of the major
distributors of the Partnership's programming. The purpose of these audits is
to identify and facilitate payment of any excess film proceeds improperly
retained by the distributors that belong to the Partnership. Based on the
preliminary results of these audits, it is anticipated that revenue proceeds
identified and collected by the Partnership in conjunction with these audits in
1997 will not be material. There can also be no assurance that the continued
second cycle distribution of the Partnership's programming will generate
significant revenue for the Partnership.
It is anticipated that proceeds from the sale of the Partnership's interests in
its programming will be distributed to partners in the future when the
Partnership's interests in the programming are sold. The General Partner cannot
predict at this time when or at what price the Partnership's interests in its
programming projects ultimately will be sold.
The General Partner believes that the Partnership has, and will continue to
have, sufficient liquidity to fund its operations and to meet its obligations so
long as quarterly distributions are suspended or substantially reduced. Cash
flow from operating activities will be generated primarily from the
Partnership's programming projects as follows:
"The Little Kidnappers"
---------------------
During 1990, the Partnership invested approximately $2,794,000 in a film
entitled "The Little Kidnappers." The Partnership advanced funds as production
advances to Maple Leaf to complete the film. In return for such production
advances, the Partnership received all distribution rights in perpetuity in all
markets except Canada. The General Partner, on behalf of the Partnership,
licensed the film to The Disney Channel and Maple Leaf licensed the film to the
Canadian Broadcasting Corporation. Aggregate license fees of approximately
$1,365,000 were received from these licensees. The original Disney Channel
license expired in September 1993. The General Partner subsequently relicensed
the film to The Disney Channel for an additional license period of five years
beginning January 1, 1994. An additional fee of $300,000 was received from this
licensee. The Canadian Broadcasting Corporation license expired in the second
quarter of 1994 and was not renewed.
In April 1991, the General Partner, on behalf of the Partnership, entered into a
distribution agreement with an unaffiliated party granting rights to distribute
"The Little Kidnappers" in the non-theatrical domestic markets for a period not
to exceed seven years. Non-theatrical markets include 16mm sales and rentals,
in-flight, oil rigs, ships at sea, military installations, libraries,
restaurants, hotels, motels or other institutional or commercial enterprises.
As of March 31, 1997, gross sales made under this arrangement
8
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totaled $94,190, of which $23,548 was retained by the distributor for its fees
and the remaining $70,642 was remitted to the Partnership.
In July 1991, the General Partner, on behalf of the Partnership, entered into an
agreement with an unaffiliated party granting the rights to distribute "The
Little Kidnappers" in the domestic home video market for a period not to exceed
five years. Under this agreement, the Partnership received a minimum guarantee
of $500,000, of which $100,000 was received upon delivery of the film in October
1991. The Partnership discounted the remaining $400,000 at an imputed interest
rate of 8%, which created a discount of $79,157. The Partnership received
$50,000 in October 1992, $75,000 in October 1993, $75,000 in October 1994 and
the remaining $200,000 in October 1995. The Partnership does not expect to
receive any additional proceeds under this agreement.
In the third quarter of 1990, the General Partner, on behalf of the Partnership,
entered into a distribution agreement with an unaffiliated party, granting the
rights to distribute "The Little Kidnappers" in international television and
international home video markets for a period of five years. This agreement
expired in October 1995. As of March 31, 1997, international gross sales made
under the original distribution agreement totaled $1,139,570, of which $363,753
was retained by the distributor for its fees and marketing costs and $771,229
was remitted to the Partnership as of March 31, 1997. The remaining $4,588 will
be paid to the Partnership over the next three to twenty-four months as
collected by the distributor.
The international distribution rights for "The Little Kidnappers" are now being
handled by the General Partner on behalf of the Partnership. The General
Partner will generally earn a distribution fee equal to 25 percent of gross
international sales and will recover its actual distribution and marketing
costs incurred, with remaining net revenues to be paid to the Partnership. In
December 1996, the General Partner, acting on behalf of the Partnership, entered
into a distribution agreement with an unaffiliated party, granting the rights to
distribute "The Little Kidnappers" in various international television markets,
including France, the United Kingdom, Scandinavia, Africa and the Middle East,
for license periods of five to six years. Under this agreement, the Partnership
is entitled to a license fee of $35,000, of which $21,000 had been received by
the Partnership as of March 31, 1997. The remaining $14,000 will be paid to the
Partnership over the next three months. The General Partner will not earn a
distribution fee relating to this agreement. As the license periods under this
agreement do not commence until April 1997, no revenue from this agreement has
been recognized by the Partnership as of March 31, 1997. The Partnership
anticipates that it will recover its remaining net investment in this film of
$82,811 from net revenues to be generated in remaining worldwide television and
home video markets by direct distribution efforts to be made on behalf of the
Partnership by the General Partner and other non-affiliated distributors.
"The Story Lady"
--------------
In 1991, the General Partner, on behalf on the Partnership, entered into an
agreement with NBC Productions, Inc. ("NBC") for the production of a full-length
made-for-television film entitled "The Story Lady." The total cost of the film
was approximately $4,300,000, and the Partnership invested its share of
approximately $1,183,000 in return for all distribution rights to this film
after the contractual airings on the NBC television network, which have been
completed.
In 1992, the General Partner, on behalf of the Partnership, entered into a
distribution agreement with an unaffiliated party, granting rights to distribute
"The Story Lady" in the non-theatrical domestic markets. As of March 31, 1997,
gross sales made under this arrangement totaled $300,969, of which $75,241 was
retained by the distributor for its fees. The remaining $225,728 has been
received by the Partnership. The General Partner, on behalf of the Partnership,
entered into an agreement with The Disney Channel, granting The Disney Channel
exclusive domestic television rights to the film for one year, from September
1994 until September 1995, for a license fee of $40,000. Of this license fee,
$26,667 was received in July 1994, with the remaining balance of $13,333
received in April 1995. In addition, the film was distributed in the domestic
home video market by the General Partner and a third party consultant beginning
in the second quarter of 1994. As of March 31, 1997, net sale proceeds under
this arrangement totaled $99,312, which were applied towards the General
Partner's recoupment of its distribution costs. As the General Partner has
fully recovered its remaining distribution costs, any additional sales, net of
fees, will flow to the Partnership. However, the Partnership does not expect to
receive any additional proceeds under this agreement.
On behalf of the Partnership, the General Partner has sub-licensed under the NBC
agreement international television and home video distribution rights to a
distribution affiliate of NBC for approximately eight years. As of March 31,
1997, international gross sales totaled $1,425,298, of which $376,728 was
retained by the distributor for its fees and marketing costs, with the remaining
$1,048,570 due to the Partnership. As of March 31, 1997, the Partnership had
received $917,986 of such amounts. The remaining $130,584 will be paid to the
Partnership over the next three to twenty-four months as collected by the
distributor.
In October 1995, the General Partner, on behalf of the Partnership, entered into
a license agreement with an unaffiliated party, granting rights to distribute
"The Story Lady" in the domestic home video market through direct, non-retail
sales for a license fee of $200,000. Under the original terms of the three year
agreement, the Partnership was entitled to $50,000 upon execution of the
agreement, and $10,000 per month for fifteen consecutive months. Of this
license fee, $50,000 was received by the General
9
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Partner in November 1995, of which $21,341 was retained by the General Partner
to be applied towards recoupment of its remaining distribution costs incurred on
behalf of the Partnership for "The Story Lady." The remaining $28,659 was
remitted to the Partnership. As of March 31, 1997, the Partnership had received
monthly license fee payments totaling $114,038. In accordance with new payment
terms renegotiated with the distributor, the remaining balance due under the
licensing agreement of $35,962 will be paid to the Partnership over the next
four months.
In December 1996, the General Partner, on behalf of the Partnership, entered
into an agreement with Lifetime Television ("Lifetime"), granting rights to
distribute "The Story Lady" in the domestic cable and satellite television
markets for a period of one and a half years commencing in July 1997. In
accordance with the terms of the agreement, the Partnership is entitled to a
$75,000 license fee, of which $25,000 was received in January 1997, with the
remaining $50,000 due in two equal payments in July 1997 and July 1998. As the
license period of this agreement does not begin until July 1997, no revenue from
the agreement has been recognized by the Partnership as of March 31, 1997.
During 1995, the Partnership recovered its remaining net investment in this
film.
"Curacao"
-------
In October 1992, the General Partner, on behalf of the Partnership, entered into
an agreement with Showtime Networks, Inc. ("Showtime") for the production of a
full-length made-for-television film entitled "Curacao." The total cost of the
film was approximately $4,410,000. In addition to the costs of production, the
Partnership paid the General Partner $500,000 as a production and overhead fee
for services rendered in connection with arranging the Showtime pre-sale and
supervising production of this picture.
The Partnership has received license fees and a home video advance totaling
$2,650,000 from Showtime in return for granting Showtime a pay television
license through 1997 and the right to market domestic home video rights for
seven years. Home video revenues in excess of $875,000 will be shared 50/50
between the Partnership and Showtime until Showtime has received $1,875,000,
after which the Partnership will receive all of the home video revenues. It is
unlikely that the Partnership will receive any additional revenues beyond the
original Showtime advance from the domestic home video distribution of
"Curacao."
In May 1993, the General Partner, on behalf of the Partnership, entered into a
distribution agreement with an unaffiliated party, granting rights to distribute
"Curacao" in the non-theatrical domestic markets. As of March 31, 1997, gross
sales made under this arrangement totaled $117,358, of which $29,340 was
retained by the distributor for its fees and $88,018 was received by the
Partnership.
The Partnership has contracted with an unaffiliated international sales agent to
market theatrical, home video, and television rights outside the United States
and Canada for a period of five years. The General Partner approved an
agreement negotiated by the international sales agent with an unaffiliated party
to market international theatrical and home video rights for a period of ten
years. The terms of such agreement provide for an advance payment of $950,000
against international theatrical and home video revenues. The payment has been
received by the Partnership net of distribution fees and expenses retained by
the distributor. No international theatrical or home video overages are
expected to be received for the remaining term of the agreement. International
television sales continue and are remitted to the Partnership, net of
distribution fees and expenses, as collected by the distributor. As of March 31,
1997, the Partnership had recorded international gross revenues of $1,247,758,
of which $359,861 was retained by the distributor for its fees and marketing
costs. The Partnership had received the remaining $887,897 as of March 31,
1997.
During the third quarter of 1995, the General Partner reassessed the anticipated
total gross revenue remaining from the distribution of "Curacao" in available
international and domestic television markets. Based on revised television
sales projections by unexploited territory, a reduction was made to the
Partnership's estimate of total gross revenue to be recognized from the future
distribution of the film. Accordingly, based on the reduced revenue projections
for the film (primarily in international television revenues), a determination
was made by the General Partner that the Partnership's net investment in
"Curacao" of $1,076,664 exceeded the film's estimated net realizable value of
$832,500 as of September 30, 1995. As a result, a loss from write-down of film
production cost $244,164 was incurred to write-down the unamortized cost of the
film to its estimated net realizable value as of September 30, 1995.
Likewise, in the third quarter of 1996, the General Partner again reassessed the
anticipated gross revenue remaining from the distribution of "Curacao" based on
revised estimated television sales projections and actual results of the film's
distribution in comparison to the film's prior projections. A determination was
made by the General Partner that the Partnership's net investment in "Curacao"
of $756,744 exceeded the film's estimated net realizable value of $100,000 as of
September 30, 1996, resulting in a write-down of $656,744. The film's estimated
net realizable value was calculated based on an estimate of
10
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anticipated revenues remaining over the life of the film from international and
domestic television distribution, net of estimated distribution fees and costs,
as of September 30, 1996.
These revenue projections were estimated by the General Partner and the film's
distributor based on the film's prior distribution history, the remaining
international and domestic territories available to the film for future
television distribution, and the General Partner's and the distributor's
previous distribution experience with other films. As of March 31, 1997, the
Partnership's net investment in the film, after consideration of amortization
and the write-downs discussed above, was $70,120. The Partnership plans to
recover its remaining net investment in this film of $70,120 from the net
revenues generated from remaining international and domestic television markets.
RESULTS OF OPERATIONS
---------------------
Revenues of the Partnership decreased $63,200, from $81,118 to $17,918 for the
three months ended March 31, 1996 and 1997, respectively. This decrease was due
primarily to an overall decrease in international and domestic sales of the
Partnership's programming. The international and domestic sales of "The Little
Kidnappers" decreased $6,814, from $11,879 to $5,065 for the three months ended
March 31, 1996 and 1997, respectively. The international and domestic sales of
"Curacao" decreased $56,386, from $69,239 to $12,853, for the three months ended
March 31, 1996 and 1997, respectively.
Filmed entertainment costs decreased $44,234, from $61,805 to $17,571 for the
three months ended March 31, 1996 and 1997, respectively. This decrease was the
result of decreased film revenues as discussed above. Filmed entertainment
costs are amortized over the life of the film in the ratio that current gross
revenues bear to anticipated total gross revenues.
Distribution fees and expenses decreased $12,880, from $22,033 to $9,153 for the
three months ended March 31, 1996 and 1997, respectively. This decrease
resulted primarily from the decreased sales of the Partnership's programming as
discussed above. These distribution fees and expenses relate to the
compensation due and costs incurred by distributors in connection with selling
the Partnership's programming in the domestic and international markets. The
timing and amount of distribution fees and expenses vary depending upon the
individual market in which programming is distributed.
Operating, general and administrative expenses increased $9,594, from $10,857 to
$20,451 for the three months ended March 31, 1996 and 1997, respectively. This
increase was due primarily to an increase in consulting fees relating to film
revenue projections for the Partnership's films and increased direct costs
allocable to the operations of the Partnership that were charged to the
Partnership by the General Partner during the three months ended March 31, 1997
as compared to the same period in 1996. The increase in direct costs allocable
to the Partnership's operations resulted mainly from the increased involvement
of General Partner personnel required to properly administer the second cycle
distribution of the Partnership's programming.
Interest income decreased $2,672, from $5,357 to $2,685 for the three months
ended March 31, 1996 and 1997, respectively. This decrease in interest income
was the result of lower average levels of invested cash balances existing during
the first three months of 1997 as compared to the same period in 1996.
11
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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
12
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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.
JONES PROGRAMMING PARTNERS 1-A, LTD.
BY: JONES ENTERTAINMENT GROUP, LTD.
General Partner
By: /s/ Steven W. Gampp
----------------------------------
Steven W. Gampp
Vice President/Finance and Treasurer
(Principal Financial Officer)
Dated: May 14, 1997
13
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