Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2014 | |
Document And Entity Information [Abstract] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 30-Sep-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q3 |
Trading Symbol | 'ncpe |
Entity Registrant Name | 'NORTHLAND CABLE PROPERTIES EIGHT LIMITED PARTNERSHIP |
Entity Central Index Key | '0000843368 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Smaller Reporting Company |
Entity Common Stock, Shares Outstanding | 0 |
Condensed_Balance_Sheets_Unaud
Condensed Balance Sheets - (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
ASSETS | ' | ' |
Cash | $78,364 | $144,373 |
Accounts receivable, net of allowance of $5,500 and $8,000 in 2014 and 2013, respectively | 111,563 | 101,777 |
Due from affiliates | 8,621 | 16,613 |
Prepaid expenses | 124,130 | 44,586 |
Property and equipment, net of accumulated depreciation of $11,649,462, and $11,289,448, respectively | 2,747,488 | 2,629,551 |
Franchise agreements, net of accumulated amortization of $1,907,136 | 394,311 | 2,292,704 |
Total assets | 3,464,477 | 5,229,604 |
LIABILITIES AND PARTNERS' CAPITAL | ' | ' |
Accounts payable and accrued expenses | 596,673 | 325,181 |
Due to General Partner and affiliates | 190,707 | 53,163 |
Deposits | 9,240 | 9,465 |
Subscriber prepayments | 150,137 | 192,433 |
Total liabilities | 946,757 | 580,242 |
General Partner: | ' | ' |
Contributed capital, net | 1,000 | 1,000 |
Accumulated deficit | -55,746 | -34,496 |
Total general partner | -54,746 | -33,496 |
Limited Partners: | ' | ' |
Contributed capital, net (19,087 units) | 8,091,119 | 8,097,798 |
Accumulated deficit | -5,518,653 | -3,414,940 |
Total limited partners | 2,572,466 | 4,682,858 |
Total partners' capital | 2,517,720 | 4,649,362 |
Total liabilities and partners' capital | $3,464,477 | $5,229,604 |
Condensed_Balance_Sheets_Unaud1
Condensed Balance Sheets - (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Allowance for accounts receivable | $5,500 | $8,000 |
Accumulated depreciation for property and equipment | 11,649,462 | 11,289,448 |
Accumulated amortization for franchise agreements | $1,907,136 | $1,907,136 |
Contributed capital, units | 19,087 | 19,087 |
Condensed_Statements_of_Operat
Condensed Statements of Operations - (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Statement [Abstract] | ' | ' | ' | ' |
Service revenues | $1,062,196 | $1,126,809 | $3,339,411 | $3,384,936 |
Expenses: | ' | ' | ' | ' |
Cable system operations / cost of revenue (including $12,551 and $17,228 to affiliates in 2014 and 2013, respectively), excluding depreciation shown below | 120,069 | 137,525 | 356,376 | 394,669 |
General and administrative (including $169,549 and $135,142 to affiliates in 2014 and 2013, respectively) | 636,700 | 367,366 | 1,363,645 | 998,880 |
Programming / cost of revenue (including $20,731 and $15,858 to affiliates in 2014 and 2013, respectively) | 469,344 | 461,335 | 1,428,217 | 1,348,763 |
Depreciation / cost of revenue | 139,020 | 142,088 | 421,177 | 416,622 |
Loss on impairment of franchise agreements | 1,898,393 | ' | 1,898,393 | ' |
(Gain) loss on disposal of assets | -3,323 | 210 | -3,323 | 210 |
Total Expenses | 3,260,203 | 1,108,524 | 5,464,485 | 3,159,144 |
Insurance proceeds | ' | ' | ' | 2,564 |
(Loss) income from operations | -2,198,007 | 18,285 | -2,125,074 | 228,356 |
Other income (expense): | ' | ' | ' | ' |
Interest expense and amortization of loan fees | ' | ' | ' | -9,310 |
Other income (expenses) net of interest income | 101 | 5 | 111 | 153 |
Total other income (expenses) | 101 | 5 | 111 | -9,157 |
Net (loss) income | -2,197,906 | 18,290 | -2,124,963 | 219,199 |
Allocation of net (loss) income: | ' | ' | ' | ' |
General Partner (1%) | -21,979 | 183 | -21,250 | 2,192 |
Limited Partners (99%) | ($2,175,927) | $18,107 | ($2,103,713) | $217,007 |
Net (loss) income per limited partnership unit: (19,087 units) | ($114) | $1 | ($110) | $11 |
Condensed_Statements_of_Operat1
Condensed Statements of Operations - (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Cable system operations cost related to affiliates | $120,069 | $137,525 | $356,376 | $394,669 |
General and administrative related to affiliates | 636,700 | 367,366 | 1,363,645 | 998,880 |
Programming cost attributable to affiliates | 469,344 | 461,335 | 1,428,217 | 1,348,763 |
General partners percentage on net income loss | 1.00% | 1.00% | 1.00% | 1.00% |
Limited partners percentage on net income loss | 99.00% | 99.00% | 99.00% | 99.00% |
Limited partners' capital account, units | 19,087 | 19,087 | 19,087 | 19,087 |
Affiliated Entity [Member] | ' | ' | ' | ' |
Cable system operations cost related to affiliates | 12,551 | 17,228 | 42,017 | 47,804 |
General and administrative related to affiliates | 169,549 | 135,142 | 502,350 | 411,044 |
Programming cost attributable to affiliates | $20,731 | $15,858 | $61,076 | $40,214 |
Condensed_Statements_of_Cash_F
Condensed Statements of Cash Flows - (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net (loss) income | ($2,124,963) | $219,199 |
Adjustments to reconcile net (loss) income to cash provided by operating activities: | ' | ' |
Depreciation | 421,177 | 416,622 |
Loss on impairment of franchise agreements | 1,898,393 | ' |
(Gain) loss on disposal of assets | -3,323 | 210 |
Amortization of loan fees | ' | 1,007 |
Insurance proceeds | ' | -2,564 |
(Increase) decrease in operating assets: | ' | ' |
Accounts receivable | -9,786 | -23,648 |
Due from affiliates | 7,992 | 31,006 |
Prepaid expenses | -79,544 | -52,565 |
Increase (decrease) in operating liabilities: | ' | ' |
Accounts payable and accrued expenses | 286,343 | 29,097 |
Due to General Partner and affiliates | 16,541 | 138,373 |
Subscriber prepayments and deposits | -42,521 | -15,252 |
Net cash provided by operating activities | 370,309 | 741,485 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of property and equipment | -454,703 | -505,361 |
Insurance proceeds | ' | 2,564 |
Proceeds from sale of assets | 25,064 | ' |
Net cash used in investing activities | -429,639 | -502,797 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Principal payments on borrowings | ' | -553,376 |
Distribution on behalf of limited partners for tax purposes | -6,679 | -4,720 |
Net cash used in financing activities | -6,679 | -558,096 |
DECREASE IN CASH | -66,009 | -319,408 |
CASH, beginning of period | 144,373 | 380,676 |
CASH, end of period | 78,364 | 61,268 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ' | ' |
Cash paid during the period for interest | ' | 8,303 |
Capital expenditures in accounts payable at September 30, 2014 and 2013 | ' | 2,304 |
Capital expenditures in due to General Partner and affiliates at September 30, 2014 and 2013 | $99,439 | ' |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
(1) Basis of Presentation | |
These unaudited condensed financial statements are being filed in conformity with Rule 10-01 of Regulation S-X regarding interim financial statement disclosure and do not contain all of the necessary footnote disclosures required for a full presentation of the balance sheets, statements of operations and statements of cash flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, these statements include all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Partnership’s financial position at September 30, 2014, its statements of operations for the three and nine months ended September 30, 2014 and 2013, and its statements of cash flows for the nine months ended September 30, 2014 and 2013. Results of operations for these periods are not necessarily indicative of results to be expected for the full year. These financial statements and notes should be read in conjunction with the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2013. |
Intangible_Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Intangible Assets | ' |
(2) Intangible Assets | |
The Partnership does not amortize intangible assets determined to have indefinite lives. The Partnership has determined that its franchises meet the definition of indefinite lived assets. The Partnership tests these assets for impairment on an annual basis during the fourth quarter using financial information as of September 30th, or on an interim basis if an event occurs or circumstances change that would indicate the assets might be impaired. | |
The Partnership tested and determined that the carrying value of the franchise agreements associated with its Swainsboro, Georgia system exceeded such assets fair value as of September 30, 2014. Fair value was determined using discounted system cash flows net of contributory charges for the system’s property and equipment (a Level 3 measurement). The Partnership recognized an impairment loss of $1,898,393 as of September 30, 2014, which resulted in a total impairment of the franchises. This is primarily the result of a significant decrease in estimated future cash flows expected to be generated by the system, which is due to, among other factors, the decline in the number of video subscribers served by the system and increasing competition from providers in the market experienced in the third quarter. |
Term_Loan
Term Loan | 9 Months Ended |
Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Term Loan | ' |
(3) Term Loan | |
The Partnership’s term loan matured and was paid in full on July 1, 2013. |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Litigation | ' |
(4) Litigation | |
In September 2014, the Partnership settled a legal claim made by a former employee. Under the terms of the settlement, the Partnership will pay $150,000 in damages, fees and costs. Pursuant to the settlement agreement, the Partnership entered into a security agreement to grant a security interest in all of the assets of the Partnership to secure the obligations. In addition, the Partnership incurred approximately $187,768 in legal fees associated with the defense of this claim, of which approximately $118,276 and $147,978 was incurred for the three and nine months ended September 30, 2014, respectively. The Partnership has recorded both the settlement and the associated legal fees as general and administrative expenses in the accompanying financial statements. | |
The Partnership is party to other ordinary and routine litigation proceedings that are incidental to the Partnership’s business. Management believes that the outcome of all pending legal proceedings will not, individually or in the aggregate, have a material adverse effect on the Partnership, its financial statements or prospects. |
Solicitation_of_Interest_from_
Solicitation of Interest from Potential Buyers | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Solicitation of Interest from Potential Buyers | ' |
(5) Solicitation of Interest from Potential Buyers | |
In July 2014, the Partnership engaged a nationally recognized brokerage firm to assess and market the Partnership’s assets for a potential sale. Eight potential buyers expressed interest and were sent a Confidential Information Memorandum on the Partnership’s systems. In the end, all interested parties declined to submit bids. Accordingly, management expects to manage the Partnership’s systems for the remaining partnership duration with the possibility of again offering the systems for sale in 2015. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
(6) Recent Accounting Pronouncements | |
In May 2014, the FASB and the International Accounting Standards Board updated the accounting guidance related to revenue recognition. The updated accounting guidance provides a single, contract-based revenue recognition model to help improve financial reporting by providing guidance on when an entity should recognize revenue, and by reducing the number of standards to which entities have to refer. The updated accounting guidance will be effective for the Partnership on January 1, 2017, and early adoption is not permitted. The updated accounting guidance allows for either a full retrospective adoption or modified retrospective adoption. The Partnership is currently in the process of determining the impact that the updated accounting guidance will have on its financial statements and its method of adoption. |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Impairment loss | $1,898,393 | $1,898,393 |
Term_Loan_Additional_Informati
Term Loan - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Credit agreement maturity date | 1-Jul-13 |
Litigation_Additional_Informat
Litigation - Additional Information (Detail) (General and administrative expenses [Member], USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
General and administrative expenses [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Legal claim settlement expenses | $150,000 | ' | ' |
Legal fees | $187,768 | $118,276 | $147,978 |
Solicitation_of_Interest_from_1
Solicitation of Interest from Potential Buyers - Additional Information (Detail) | 1 Months Ended |
Jul. 31, 2014 | |
Entity | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | ' |
Number of potential buyers | 8 |