Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Entity Registrant Name | NORTHLAND CABLE PROPERTIES EIGHT LIMITED PARTNERSHIP | |
Entity Central Index Key | 843368 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 19,087 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE |
Condensed_Balance_Sheets_Unaud
Condensed Balance Sheets - (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash | $143,139 | $87,503 |
Accounts receivable, net of allowance of $9,400 | 125,304 | 117,745 |
Due from affiliates | 5,439 | 6,028 |
Prepaid expenses | 44,732 | 45,547 |
Property and equipment, net of accumulated depreciation of $11,786,895, and $11,642,253, respectively | 2,685,156 | 2,725,476 |
Franchise agreements, net of accumulated amortization of $1,907,136 | 394,311 | 394,311 |
Total assets | 3,398,081 | 3,376,610 |
LIABILITIES AND PARTNERS' CAPITAL | ||
Accounts payable and accrued expenses | 524,515 | 586,106 |
Due to General Partner and affiliates | 357,071 | 233,437 |
Deposits | 10,090 | 9,515 |
Subscriber prepayments | 174,392 | 157,694 |
Total liabilities | 1,066,068 | 986,752 |
General Partner: | ||
Contributed capital, net | 1,000 | 1,000 |
Accumulated deficit | -57,602 | -57,024 |
-56,602 | -56,024 | |
Limited Partners: | ||
Contributed capital, net (19,087 units) | 8,091,119 | 8,091,119 |
Accumulated deficit | -5,702,504 | -5,645,237 |
2,388,615 | 2,445,882 | |
Total partners' capital | 2,332,013 | 2,389,858 |
Total liabilities and partners' capital | $3,398,081 | $3,376,610 |
Condensed_Balance_Sheets_Unaud1
Condensed Balance Sheets - (Unaudited) (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Allowance for doubtful accounts | $9,400 | $9,400 |
Property and equipment, accumulated depreciation | 11,786,895 | 11,642,253 |
Franchise agreements, accumulated amortization | $1,907,136 | $1,907,136 |
Capital units outstanding (in shares) | 19,087 | 19,087 |
Condensed_Statements_of_Operat
Condensed Statements of Operations - (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Service revenues | $1,092,518 | $1,147,210 |
Expenses: | ||
Cable system operations / cost of revenue (including $10,243, and $17,044 to affiliates in 2015 and 2014, respectively), excluding depreciation shown below | 129,575 | 117,499 |
General and administrative (including $168,942, and $160,776 to affiliates in 2015 and 2014, respectively) | 336,437 | 347,499 |
Programming / cost of revenue (including $19,610 and $19,392 to affiliates in 2015 and 2014, respectively) | 537,629 | 487,144 |
Depreciation / cost of revenue | 144,642 | 142,103 |
1,148,283 | 1,094,245 | |
(Loss) income from operations | -55,765 | 52,965 |
Other income (expense): | ||
Interest expense | -1,980 | |
Other income (expenses) net of interest income | -100 | 5 |
-2,080 | 5 | |
Net (loss) income | -57,845 | 52,970 |
Allocation of net (loss) income: | ||
General Partner (1%) | -578 | 530 |
Limited Partners (99%) | ($57,267) | $52,440 |
Net (loss) income per limited partnership unit: | ||
(19,087 units) (in dollars per share) | ($3) | $3 |
Condensed_Statements_of_Operat1
Condensed Statements of Operations - (Unaudited) (Parentheticals) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cable system operations cost related to affiliates | $129,575 | $117,499 |
General and administrative related to affiliates | 336,437 | 347,499 |
Programming cost attributable to affiliates | 537,629 | 487,144 |
General Partner, Percent | 1.00% | 1.00% |
Limited Partners, Perecent | 99.00% | 99.00% |
Capital units outstanding (in shares) | 19,087 | 19,087 |
Affiliated Entity [Member] | ||
Cable system operations cost related to affiliates | 10,243 | 17,044 |
General and administrative related to affiliates | 168,942 | 160,776 |
Programming cost attributable to affiliates | $19,610 | $19,392 |
Condensed_Statements_of_Cash_F
Condensed Statements of Cash Flows - (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | ($57,845) | $52,970 |
Adjustments to reconcile net (loss) income to cash provided by operating activities: | ||
Depreciation | 144,642 | 142,103 |
(Increase) decrease in operating assets: | ||
Accounts receivable | -7,559 | 12,771 |
Due from affiliates | 589 | 11,851 |
Prepaid expenses | 815 | -116,910 |
Increase (decrease) in operating liabilities: | ||
Accounts payable and accrued expenses | -33,731 | 16,325 |
Due to General Partner and affiliates | 123,634 | 23,381 |
Subscriber prepayments and deposits | 17,273 | -5,839 |
Net cash provided by operating activities | 187,818 | 136,652 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | -132,182 | -178,602 |
Net cash used in investing activities | -132,182 | -178,602 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
INCREASE (DECREASE) IN CASH | 55,636 | -41,950 |
CASH, beginning of period | 87,503 | 144,373 |
CASH, end of period | 143,139 | 102,423 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid during the period for interest | 1,980 | 2,908 |
Capital expenditures in accounts payable at March 31, 2015 and 2014 | 5,780 | 25,906 |
Capital expenditures in due to general partner and affiliates at March 31, 2015 and 2014 | $95,701 |
Note_1_Basis_of_Presentation
Note 1 - Basis of Presentation | 3 Months Ended | |
Mar. 31, 2015 | ||
Notes to Financial Statements | ||
Basis of Accounting [Text Block] | -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 March 31, 2015, its statements of operations for the three months ended March 31, 2015 and 2014, and its statements of cash flows for the three months ended March 31, 2015 and 2014. 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, 2014. |
Note_2_Intangible_Assets
Note 2 - Intangible Assets | 3 Months Ended | |
Mar. 31, 2015 | ||
Notes to Financial Statements | ||
Intangible Assets Disclosure [Text Block] | -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’s test for impairment performed during the fourth quarter of 2014 indicated that the carrying value of the franchise agreements associated with its Swainsboro, Georgia system exceeded such assets fair value as of September 30, 2014. The Partnership recognized an impairment loss of $1,898,393 as of September 30, 2014, which resulted in a total impairment of the franchises. | ||
The Partnership determined that there are no conditions such as obsolescence, regulatory changes, changes in demand, competition, or other factors that would change their indefinite life determination. The Partnership will continue to test these assets for impairment annually as of September 30th, or more frequently as warranted by events or changes in circumstances. |
Note_3_Litigation
Note 3 - Litigation | 3 Months Ended | |
Mar. 31, 2015 | ||
Notes to Financial Statements | ||
Legal Matters and Contingencies [Text Block] | -3 | 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 $216,848 in legal fees associated with the defense of this claim, of which approximately $5,948 was incurred for the three months ended March 31, 2014. The Partnership recognized both the settlement and the associated legal fees as general and administrative expenses for the year ended December 31, 2014. | ||
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. |
Note_4_Liquidity
Note 4 - Liquidity | 3 Months Ended | |
Mar. 31, 2015 | ||
Notes to Financial Statements | ||
Liquidity Disclosure [Policy Text Block] | -4 | Liquidity |
The Partnership's primary source of liquidity is cash flow provided by operations. The Partnership generates cash through the monthly billing of subscribers for video, Internet, telephone and other services. As a result of the aforementioned legal settlement, the Partnership will actively reduce its capital expenditures and continue to defer payment of management fees and other payments to affiliates for 2015 to satisfy these obligations and to cover future operating costs and working capital needs over the next twelve-month period. In the normal course of operations over the next twelve-month period, the General Partner and its affiliates have represented to the Partnership that they will not call the amounts deferred by the Partnership. |
Note_5_Solicitation_of_Interes
Note 5 - Solicitation of Interest from Potential Buyers | 3 Months Ended | |
Mar. 31, 2015 | ||
Notes to Financial Statements | ||
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | -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. |
Note_6_Recent_Accounting_Prono
Note 6 - Recent Accounting Pronouncements | 3 Months Ended | |
Mar. 31, 2015 | ||
Notes to Financial Statements | ||
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | -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. | ||
At its April 1, 2015, meeting, the FASB agreed to propose a one-year deferral of the revenue recognition standard’s effective date for all entities. The FASB intend to issue an exposure draft in the near term with a 30-day comment period. |
Note_2_Intangible_Assets_Detai
Note 2 - Intangible Assets (Details Textual) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $1,898,393 |
Note_3_Litigation_Details_Text
Note 3 - Litigation (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 36 Months Ended |
Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | |
Litigation Settlement, Amount | ($150,000) | ||
Litigation Settlement, Expense | $5,948 | $216,848 |
Note_5_Solicitation_of_Interes1
Note 5 - Solicitation of Interest from Potential Buyers (Details Textual) | Jul. 31, 2014 |
Number of Potential Buyers | 8 |