Northland Cable Properties Eight Limited Partnership (NCPE) 10-Q 10 Aug 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - Jun. 30, 2015 - shares	Total
Entity Registrant Name	NORTHLAND CABLE PROPERTIES EIGHT LIMITED PARTNERSHIP
Entity Central Index Key	843,368
Current Fiscal Year End Date	--12-31
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	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Balance Sheets - (Una

Condensed Balance Sheets - (Unaudited) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
ASSETS
Cash	$ 95,589	$ 87,503
Accounts receivable, net of allowance of $9,400	133,128	117,745
Due from affiliates	3,370	6,028
Prepaid expenses	106,980	45,547
Property and equipment, net of accumulated depreciation of $11,928,057, and $11,642,253, respectively	2,594,901	2,725,476
Franchise agreements, net of accumulated amortization of $1,907,136	394,311	394,311
Total assets	3,328,279	3,376,610
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued expenses	472,299	586,106
Due to General Partner and affiliates	421,361	233,437
Deposits	7,590	9,515
Subscriber prepayments	162,935	157,694
Total liabilities	1,064,185	986,752
General Partner:
Contributed capital, net	1,000	1,000
Accumulated deficit	(58,282)	(57,024)
	(57,282)	(56,024)
Limited Partners:
Contributed capital, net (19,087 units)	8,091,119	8,091,119
Accumulated deficit	(5,769,743)	(5,645,237)
	2,321,376	2,445,882
Total partners' capital	2,264,094	2,389,858
Total liabilities and partners' capital	$ 3,328,279	$ 3,376,610

Condensed Balance Sheets - (Un3

Condensed Balance Sheets - (Unaudited) (Parentheticals) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Allowance for doubtful accounts	$ 9,400	$ 9,400
Property and equipment, accumulated depreciation	11,928,057	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 Operati

Condensed Statements of Operations - (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Service revenues	$ 1,085,952	$ 1,130,004	$ 2,178,470	$ 2,277,215
Cable system operations cost related to affilates	128,626	118,809	258,202	236,308
General and administrative	342,240	379,446	678,676	726,945
Programming / cost of revenue	540,508	471,728	1,078,137	958,873
Depreciation / cost of revenue	141,162	140,054	285,804	282,156
	1,152,536	1,110,037	2,300,819	2,204,282
(Loss) income from operations	(66,584)	$ 19,967	(122,349)	$ 72,933
Interest expense	$ (1,335)		(3,315)
Other income (expenses) net of interest income		$ 5	(100)	$ 9
	$ (1,335)	5	(3,415)	9
Net (loss) income	(67,919)	19,972	(125,764)	72,942
General Partner (1%)	(679)	200	(1,258)	729
Limited Partners (99%)	$ (67,240)	$ 19,772	$ (124,506)	$ 72,213
(19,087 units) (in dollars per share)	$ (4)	$ 1	$ (7)	$ 4
Insurance proceeds

Condensed Statements of Operat5

Condensed Statements of Operations - (Unaudited) (Parentheticals) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Affiliated Entity [Member]
Cable system operations cost related to affilates	$ 15,128	$ 12,422	$ 25,371	$ 29,466
General and administrative related to affiliates	169,567	172,075	338,510	332,801
Programming cost attributable to affiliates	18,934	20,952	38,544	40,344
Cable system operations cost related to affilates	128,626	118,809	258,202	236,308
General and administrative related to affiliates	342,240	379,446	678,676	726,945
Programming cost attributable to affiliates	$ 540,508	$ 471,728	$ 1,078,137	$ 958,873
General Partners, Percent	1.00%	1.00%	1.00%	1.00%
Limited Partners, Percent	99.00%	99.00%	99.00%	99.00%
Capital units outstanding (in shares)	19,087	19,087	19,087	19,087

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (125,764)	$ 72,942
Adjustments to reconcile net (loss) income to cash provided by operating activities:
Depreciation	285,804	282,156
(Increase) decrease in operating assets:
Accounts receivable	(15,383)	(21,826)
Due from affiliates	2,658	8,300
Prepaid expenses	(61,433)	(70,549)
Increase (decrease) in operating liabilities:
Accounts payable and accrued expenses	(113,807)	70,089
Due to General Partner and affiliates	187,924	16,078
Subscriber prepayments and deposits	3,316	(37,117)
Net cash provided by operating activities	163,315	320,073
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(155,229)	(368,713)
Net cash used in investing activities	$ (155,229)	(368,713)
CASH FLOWS FROM FINANCING ACTIVITIES:
Distribution on behalf of limited partners for tax purposes		(6,679)
Net cash used in financing activities		(6,679)
INCREASE (DECREASE) IN CASH	$ 8,086	(55,319)
CASH, beginning of period	87,503	144,373
CASH, end of period	95,589	$ 89,054
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest	3,315
Capital expenditures in due to General Partner and affiliates at June 30, 2015 and 2014	$ 95,701	$ 2,805

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	6 Months Ended
	Jun. 30, 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 June 30, 2015, its statements of operations for the three and six months ended June 30, 2015 and 2014, and its statements of cash flows for the six months ended June 30, 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	6 Months Ended
	Jun. 30, 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 Swainsboro 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	6 Months Ended
	Jun. 30, 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 $23,754 and $29,702 was incurred for the three and six months ended June 30, 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	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Substantial Doubt about Going Concern [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. The General Partner and its affiliates have represented to the Partnership that they will not call the amounts deferred if it impacts the ability of the Partnership to operate in the normal course.

Note 5 - Solicitation of Intere

Note 5 - Solicitation of Interest from Potential Buyers	6 Months Ended
	Jun. 30, 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 (“CIM”) on the Partnership’s systems. In the end, all interested parties declined to submit bids. In June 2015, the CIM was updated. Potential buyers were contacted and three parties expressed interest in receiving the updated CIM. To date, management has received a non-interest comment from two of the parties and one party is still looking at the Aliceville system. 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 late 2015.

Note 6 - Recent Accounting Pron

Note 6 - Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 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. In July 2015, FASB voted to defer the effective date by one year to December 15, 2017 for annual reporting periods beginning after that date. The updated accounting guidance provides companies with alternative methods of adoption. We are currently in the process of determining the impact that the updated accounting guidance will have on the Partnership’s financial statements and method of adoption.

Note 2 - Intangible Assets (Det

Note 2 - Intangible Assets (Details Textual)	9 Months Ended
	Sep. 30, 2014USD ($)
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)	$ 1,898,393

Note 3 - Litigation (Details Te

Note 3 - Litigation (Details Textual) - USD ($)	1 Months Ended	3 Months Ended	6 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Jun. 30, 2014
Litigation Settlement, Amount	$ (150,000)
Litigation Settlement, Expense	$ 216,848	$ 23,754	$ 29,702

Note 5 - Solicitation of Inte15

Note 5 - Solicitation of Interest from Potential Buyers (Details Textual)	Jun. 30, 2015	Jul. 31, 2014
Number of Potential Buyers	3	8
Number of Potential Buyers, Not Interested	2
Number of Potential Buyers Still Considering	1

Uncategorized Items - ncpe-2015

Label	Element	Value
Net (loss) income	us-gaap_NetIncomeLoss	$ (67,919)
Net (loss) income	us-gaap_NetIncomeLoss	19,972
us-gaap_CostOfServicesDepreciation	us-gaap_CostOfServicesDepreciation	140,054
us-gaap_CostOfServicesDepreciation	us-gaap_CostOfServicesDepreciation	$ 141,162