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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, 1999.
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[ ] 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, Englewood, Colorado 80112
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Address of principal executive office
(303) 792-3111
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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.
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INDEX
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Page
Number
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Unaudited Statements of Financial Position
December 31, 1998 and June 30, 1999 3
Unaudited Statements of Operations
Three and Six Months Ended June 30, 1998 and 1999 4
Unaudited Statements of Cash Flows
Six Months Ended June 30, 1998 and 1999 5
Notes to Unaudited Financial Statements
June 30, 1999 6-7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8-11
PART II. OTHER INFORMATION 12
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JONES PROGRAMMING PARTNERS 1-A, LTD.
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(A Limited Partnership)
UNAUDITED STATEMENTS OF FINANCIAL POSITION
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<CAPTION>
December 31, June 30,
1998 1999
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ASSETS
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<S> <C> <C>
CASH AND CASH EQUIVALENTS $ 90,672 $ 138,776
RECEIVABLES:
Domestic income receivable 25,275 15,000
Foreign income receivable 81,122 24,839
INVESTMENT IN AND ADVANCES FOR FILM PRODUCTION,
net of accumulated amortization of $8,822,233 and $8,824,670
as of December 31, 1998 and June 30, 1999, respectively 64,973 62,536
OTHER ASSETS 3,275 3,275
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Total assets $ 265,317 $ 244,426
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LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
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CURRENT LIABILITIES:
Accounts payable to affiliates 11,045 62,043
Unearned revenue 3,889 -
Accrued liabilities 115,010 59,058
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Total current liabilities 129,944 121,101
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PARTNERS' CAPITAL (DEFICIT):
General partner -
Contributed capital 1,000 1,000
Distributions (42,440) (42,440)
Accumulated deficit (11,172) (11,292)
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Total general partner's deficit (52,612) (52,732)
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Limited partners -
Contributed capital, net of offering costs
(12,743 units outstanding as of December 31, 1998
and June 30, 1999) 5,459,327 5,459,327
Distributions (4,201,502) (4,201,502)
Accumulated deficit (1,069,840) (1,081,768)
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Total limited partners' capital 187,985 176,057
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Total partners' capital 135,373 123,325
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Total liabilities and partners' capital (deficit) $ 265,317 $ 244,426
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</TABLE>
The accompanying notes to these 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
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<CAPTION>
For the Three Months For the Six Months
Ended June 30, Ended June 30,
-------------------------- --------------------------
1998 1999 1998 1999
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
GROSS REVENUES $ 10,754 $ 515 $ 18,702 $ 4,791
COSTS AND EXPENSES:
Costs of filmed entertainment 232 133 7,556 2,437
Distribution fees and expenses 77,779 - 77,779 23
Operating, general and administrative expenses 12,708 9,570 17,810 15,278
--------- --------- --------- ---------
Total costs and expenses 90,719 9,703 103,145 17,738
--------- --------- --------- ---------
OPERATING LOSS (79,965) (9,188) (84,443) (12,947)
--------- --------- --------- ---------
OTHER INCOME (EXPENSE):
Interest income 1,572 654 7,804 975
Other income (expense), net (260) (57) (234) (77)
--------- --------- --------- ---------
Other income, net 1,312 597 7,570 898
--------- --------- --------- ---------
NET LOSS $ (78,653) $ (8,591) $ (76,873) $ (12,049)
--------- --------- --------- ---------
--------- --------- --------- ---------
ALLOCATION OF NET LOSS:
General partner $ (787) $ (86) $ (769) $ (120)
--------- --------- --------- ---------
--------- --------- --------- ---------
Limited partners $ (77,866) $ (8,505) $ (76,104) $ (11,929)
--------- --------- --------- ---------
--------- --------- --------- ---------
NET LOSS PER LIMITED
PARTNERSHIP UNIT $ (6.11) $ (.66) $ (5.97) $ (.94)
--------- --------- --------- ---------
--------- --------- --------- ---------
WEIGHTED AVERAGE NUMBER OF LIMITED
PARTNERSHIP UNITS OUTSTANDING 12,743 12,743 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 Six Months
Ended June 30,
--------------------------
1998 1999
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (76,873) $ (12,049)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Amortization of filmed entertainment costs 7,556 2,437
Net change in assets and liabilities:
Decrease (increase) in domestic income receivable (135,000) 10,275
Decrease in foreign income receivable 4,384 56,283
Increase in accounts payable - trade - 55,758
Net change in amounts due to/from affiliates 84,207 50,999
Decrease in accrued liabilities (2,289) (111,710)
Increase (decrease) in unearned revenue 142,222 (3,889)
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Net cash provided by operating activities 24,207 48,104
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CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (160,897) -
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Net cash used in financing activities (160,897) -
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INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (136,690) 48,104
CASH AND CASH EQUIVALENTS, beginning of period 234,842 90,672
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CASH AND CASH EQUIVALENTS, end of period $ 98,152 $ 138,776
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</TABLE>
The accompanying notes to these 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 December 31, 1998 and June 30, 1999
and its results of operations and its cash flows for the three month
periods ended June 30, 1998 and 1999. Results of operations for these
periods are not necessarily indicative of results to be expected for
the full year.
(2) TRANSACTIONS WITH AFFILIATED ENTITIES
-------------------------------------
Jones Entertainment Group, Ltd. ("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 $6,389 and $4,948 to the Partnership for direct expenses for
the three months ended June 30, 1998 and 1999, respectively.
(3) INVESTMENT IN AND ADVANCES FOR FILM PRODUCTION
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"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. In March 1999, the Partnership fully
amortized its net investment in this film. From inception to June 30,
1999, the Partnership has recognized approximately $3,002,000 of
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 June 30, 1999, there were no outstanding receivables.
"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 approximately $1,183,000 in
return for worldwide 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 amortized
its net investment in the film. From inception to June 30, 1999, the
Partnership has recognized approximately $2,309,000 of revenue from
this film. As of June 30, 1999, the Partnership had outstanding
receivables from the film's domestic and international distributors and
licensees totaling $39,839, of which $10,000 was received by the
Partnership in July 1999. The Partnership anticipates payment of the
remaining $29,839 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 production cost of the film incurred by the
Partnership 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. From inception to June 30, 1999, the Partnership has
recognized approximately $4,032,000 of revenue from this film, which
included 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
June 30, 1999, the Partnership's net investment in the film, after
consideration of amortization and write downs, was
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$62,536. The Partnership plans to amortize its remaining net investment
in this film from the net revenues generated from remaining
international and domestic television markets or recover its remaining
net investment from the sale of the Partnership's interest in the film.
As of June 30, 1999, there were no outstanding receivables.
7
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JONES PROGRAMMING PARTNERS 1-A, LTD.
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(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
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FINANCIAL CONDITION AND RESULTS OF OPERATIONS
---------------------------------------------
FINANCIAL CONDITION
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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 approximately $139,000 in cash
as of June 30, 1999. It is not anticipated that the Partnership will invest
in any additional programming projects, but instead will focus on the
distribution and/or sale of its existing programming projects. The
Partnership had outstanding amounts receivable from unaffiliated distributors
totaling approximately $39,000 as of June 30, 1999. The domestic income
receivable of approximately $15,000 will be paid to the Partnership over the
next five months. The foreign income receivable of approximately $24,000 will
be paid to the Partnership over the next three to twenty-four months as
collected by distributors.
Given the near completion of the second cycle distribution of the
Partnership's programming, as previously announced, regular quarterly
distributions from operations were suspended beginning with the quarter ended
March 31, 1997. However, upon further evaluation by the General Partner of
the cash reserves and cash operating needs of the Partnership, an additional
quarterly cash flow distribution totaling $160,897 was declared for the
quarter ending March 31, 1998 and paid in May 1998. The Partnership will
retain a certain level of working capital, including any necessary reserves,
to fund its operating activities and/or satisfy its outstanding liabilities.
It is anticipated that any future distributions will only be made once
proceeds are received from the sale of the Partnership's assets; although,
the General Partner will continue to make quarterly evaluations of the
partnership's working capital position and needs.
The General Partner, on behalf of the Partnership, is currently considering
the sale of the Partnership's interests in its programming projects. If the
General Partner or one of its affiliates exercises its right to purchase the
Partnership's interests in a programming project, however, the sales price
for such a transaction will be at least equal to the average of three
independent appraisals of the programming project's fair market value. The
General Partner has no obligation to purchase any assets of the Partnership.
Any sale of all or substantially all of the Partnership's assets will be
subject to the approval of the Partnership's limited partners prior to
closing of the sale.
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.
Any direct costs incurred by the General Partner on behalf of the Partnership
in soliciting and arranging for the sale of the Partnership's programming
projects will be charged to the Partnership. It is anticipated that the net
proceeds from the sale of the Partnership's interests in its programming will
be distributed to the partners after such sale. Based on the General
Partner's estimates of value and indications of value obtained from
unaffiliated parties, it is probable that the distributions of the proceeds
from the sales of the Partnership's programming projects, together with all
prior distributions paid to the limited partners, will return to the limited
partners less than 75% of their initial capital contributions to the
Partnership.
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. 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.
This film is currently being distributed in domestic markets through the
following contracts. The General Partner licensed the film to The Disney
Channel for an additional license period of six years beginning January 1,
1994 for an additional fee of $300,000, which had been received by the
Partnership as of June 30, 1999. In May 1997, the General Partner, on behalf
of the Partnership entered into a five year licensing agreement with an
unaffiliated third party, granting the rights to distribute "The Little
Kidnappers" in the North American home video market. Under this agreement,
the Partnership is entitled to a $20,000 license fee, which has been received
by the Partnership as of June 30, 1999. In addition to the initial license
fee, the Partnership is also entitled to a home
8
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video royalty of 10 to 20 percent of net retail sale proceeds earned by the
licensee, with the royalty percentage dependent on the per video unit sales
price obtained. As of June 30, 1999, the Partnership had recognized $20,000
in revenue under this agreement.
The General Partner on behalf of the Partnership is now handling the
international distribution rights for "The Little Kidnappers". 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 and a license
fee of $35,000. The General Partner will not earn a distribution fee relating
to this agreement.
In March 1999, the Partnership fully amortized its net investment in this
film.
"The Story Lady"
- ----------------
In 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, 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
June 30, 1999, 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 June
30, 1999, 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 June 30,
1999, international gross sales totaled $1,474,299, of which $434,387 was
retained by the distributor for its fees and marketing costs, with the
remaining $1,039,912 due to the Partnership. As of June 30, 1999, the
Partnership had received $1,015,366 of such amounts. The remaining $24,546
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 in November 1995, of which
$21,341 was remitted to 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 retained by the Partnership. As
of June 30, 1999, the Partnership had received monthly license fee payments
in total for the remaining $150,000. In June 1998, the General Partner agreed
to extend this distribution agreement to the unaffiliated third party for an
additional three years. The distribution agreement extension requires a fee
of $150,000 for the renewal period to be paid in 15 equal monthly
installments. As of June 30, 1999, the Partnership has received $135,000
toward the distribution agreement extension. The remaining $15,000 will be
paid to the Partnership over the next three 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 1998. In
accordance with the terms of the agreement, the Partnership is entitled to a
$75,000 license fee, which was received in three equal payments of $25,000 in
January 1997, August 1997 and July 1998.
In May 1997, the General Partner, acting on behalf of the Partnership,
entered into a five year licensing agreement with an unaffiliated third
party, granting the rights to distribute "The Story Lady" in the North
American home video market. Under this agreement, the Partnership is entitled
to a $20,000 license fee which has been received by the Partnership as of
June 30, 1999. In addition to the initial license fee, the Partnership will
also be entitled to a home video royalty of 10 to 20 percent of net retail
sale proceeds earned by the licensee, with the royalty percentage dependent
on the per video unit sales price obtained. As of June 30, 1999, the
Partnership has recognized $31,627 in revenue under this agreement.
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The Partnership has fully amortized its 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. The
Partnership does not expect to 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 June 30,
1999, 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.
Also, in May 1993, 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 June 30, 1999, the Partnership had
recorded international gross revenues of $1,245,075, of which $355,733 was
retained by the distributor for its fees and marketing costs. The remaining
$889,342 has been received by the Partnership.
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 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 June
30, 1999, the Partnership's net investment in the film, after consideration
of amortization and the write-downs discussed above, was $62,536. The
Partnership plans to amortize its net investment in this film of $62,536 from
the net revenues generated from remaining international and domestic
television markets or recover its remaining net investment from the sale of
the Partnership's interests in the film.
IMPACT OF THE YEAR 2000 ISSUE (UNAUDITED)
The Year 2000 issue is the result of many computer programs being written
such that they will malfunction when reading a year of "00." This problem
could cause system failure or miscalculations causing disruptions of business
processes.
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In conjunction with its affiliates, the General Partner has initiated an
assessment of its computer applications to determine the extent of the
problem. Based on this assessment, the General Partner has determined that
the majority of its computer applications supporting business processes,
including accounting and investor services, are designed to handle the Year
2000 appropriately. The General Partner believes there will be no financial
impact to the Partnership due to the Year 2000 issue.
RESULTS OF OPERATIONS
---------------------
Revenues of the Partnership decreased $10,239, from $10,754 to $515 for the
three months ended June 30, 1998 and 1999, respectively. Revenues of the
Partnership decreased $13,911, from $18,702 to $4,791 for the six months
ended June 30, 1998 and 1999, respectively. These decreases were due primarily
to a decrease in the international and domestic sales of "The Story Lady" and
"The Little Kidnappers". Revenue for "Curacao" increased $133 and $133 for
the three and six months ended June 30, 1999, respectively, as compared to
the same periods of 1998. Revenue for "The Little Kidnappers" decreased $250
and $3,836 for the three and six months ended June 30, 1999, respectively, as
compared to the same periods of 1998. Revenue for "The Story Lady" decreased
$10,123 and $10,208 for the three and six months ended June 30, 1999,
respectively, as compared to the same periods of 1998
Filmed entertainment costs decreased $99, from $232 to $133 for the three
months ended June 30, 1998 and 1999, respectively. Filmed entertainment costs
decreased $5,118, from $7,556 to $2,437 for the six months ended June 30,
1998 and 1999, 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 $77,779, from $77,779 to $0 for the
three months ended June 30, 1998 and 1999, respectively. Distribution fees
and expenses decreased $77,756, from $77,779 to $23 for the six months ended
June 30, 1998 and 1999, respectively. The decrease for the three and six
month periods resulted primarily from the payment of royalties in 1998 of
approximately $47,000 and $30,000 to artisan guilds for revenue received from
inception to date for the films "Curacao" and "The Little Kidnappers,"
respectively. 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 decreased $3,138, from $12,708
to $9,570 for the three months ended June 30, 1998 and 1999, respectively.
Operating, general and administrative expenses decreased $2,532, from $17,810
to $15,278 for the six months ended June 30, 1998 and 1999, respectively.
This decrease was due primarily to a decrease in the direct costs allocable
to the operations of the Partnership that were charged to the Partnership by
the General Partner and its affiliates during the three and six months ended
June 30, 1999 as compared to the same periods in 1998. This decrease in
direct costs allocable to the Partnership's operations resulted mainly from
the decrease in General Partner personnel expenses and the decrease in direct
time spent by the affiliates of the General Partner on the accounting and
legal functions of the Partnership.
Interest income decreased $918, from $1,572 to $654 for the three months
ended June 30, 1998 and 1999, respectively. Interest income decreased $6,829,
from $7,804 to $975 for the six months ended June 30, 1998 and 1999,
respectively. This decrease in interest income was the result of lower
average levels of invested cash balances existing during the three month and
the six month periods of 1999 as compared to the same periods in 1998.
Limited partners' net loss per partnership unit changed $5.45, from $(6.11)
to $(.66) for the three months ended June 30, 1998 and 1999, respectively.
Limited partners' net income (loss) per partnership unit changed $5.03, from
$(5.97) to $(.94) for the six months ended June 30, 1998 and 1999,
respectively. This change was due to the results of operations as discussed
above.
11
<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
12
<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.
JONES PROGRAMMING PARTNERS 1-A, LTD.
BY: JONES ENTERTAINMENT GROUP, LTD.
General Partner
By: /s/ Thomas B. Anema
------------------------------------
Thomas B. Anema
Vice President/Finance and Treasurer
(Principal Financial Officer)
Dated: August 13, 1999
13
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<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> APR-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 138,776
<SECURITIES> 0
<RECEIVABLES> 39,839
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 178,615
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 244,426
<CURRENT-LIABILITIES> 121,101
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 123,325
<TOTAL-LIABILITY-AND-EQUITY> 244,426
<SALES> 0
<TOTAL-REVENUES> 4,791
<CGS> 0
<TOTAL-COSTS> (12,947)
<OTHER-EXPENSES> (77)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 975
<INCOME-PRETAX> (12,049)
<INCOME-TAX> 0
<INCOME-CONTINUING> (12,049)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (12,049)
<EPS-BASIC> (.94)
<EPS-DILUTED> (.94)
</TABLE>
