1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 1995 Commission File No. 19324
Boston Celtics Limited Partnership
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(Exact name of registrant as specified in its charter)
Delaware 04-2936516
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
151 Merrimac Street, Boston, MA 02114
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(Address of principal executive offices) (Zip code)
(617) 523-6050
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(Registrant's telephone number including area code)
Indicate by checkmark whether the registrant (1) has filed reports
required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months and (2) has been
subject to such filing requirements for the past 90 days.
Yes [X] No [ ]
The number of Units outstanding as of December 31, 1994 was 6,399,722
of Limited Partnership Interest.
2
Part I - Financial Information
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BOSTON CELTICS LIMITED PARTNERSHIP AND SUBSIDIARIES
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Item 1 - Financial Statements
Boston Celtics Limited Partnership (the "Boston Celtics", "BCLP" or
the "Partnership") a Delaware Limited Partnership, through Celtics
Limited Partnership ("CLP"), its 99% owned limited partnership, owns
and operates the Boston Celtics professional basketball team of the
National Basketball Association, and through BCCLP Holding
Corporation ("Holdings"), a wholly-owned subsidiary of BCLP and
Holdings' 99% owned limited partnership Boston Celtics Communications
Limited Partnership ("BCCLP") and its 99% owned limited partnership
Boston Celtics Broadcasting Limited Partnership ("BCBLP") owns and
operates Television Station WFXT - Channel 25 of Boston,
Massachusetts and owned and operated Radio Station WEEI - 590 AM of
Boston, Massachusetts until its sale on June 30, 1994. The General
Partner of BCLP is Celtics, Inc. ("CI"); the General Partner of CLP
is Boston Celtics Corporation ("BCC"); the General Partner of BCCLP
is Celtics Communications, Inc. ("CCI"); and the General Partner of
BCBLP is BCCLP. The General Partners of BCLP, CLP and BCCLP are
Delaware corporations whose sole stockholders are Don Gaston, Alan
Cohen and Paul Dupee (principal holders of the limited partnership
Units of the Partnership), Paul Gaston (son of Don Gaston) and
certain of their affiliates. The consolidated financial statements
include the accounts of the Partnership, Celtics Investments, Inc.
("CII"), a wholly owned subsidiary of BCLP, Celtics Capital
Corporation ("CCC"), a wholly owned subsidiary of BCCLP, Holdings and
their subsidiary partnerships. All intercompany transactions are
eliminated in consolidation.
The accompanying unaudited interim consolidated financial statements
have been prepared in accordance with generally accepted accounting
principles for interim financial statements and with instructions to
Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In
the opinion of management, all adjustments (consisting of normal
recurring accruals) necessary for a fair presentation have been
included therein. Operating results for interim periods are not
indicative of the results that may be expected for the full year.
For further information, refer to the consolidated financial
statements and footnotes thereto included in the annual report on
Form 10-K of Boston Celtics Limited Partnerships and Subsidiaries for
the year ended June 30, 1994.
3
BOSTON CELTICS LIMITED PARTNERSHIP
and Subsidiaries
Consolidated Balance Sheets
March 31, June 30,
1995 1994
------------ ------------
ASSETS (Unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 27,850,400 $ 38,093,082
Marketable securities 42,815,265 22,205,099
Other short term investments 73,453,575
Accounts receivable (less allowance for
doubtful accounts - $236,281 in March
and $407,544 in June) 13,472,220 11,828,640
Program broadcast rights - current portion 7,724,898 7,084,177
Deferred game costs 338,063
Prepaid expenses 214,548 281,311
Other current assets and deferred charges 4,400,000
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TOTAL CURRENT ASSETS 170,268,969 79,492,309
PROGRAM BROADCAST RIGHTS - noncurrent portion 12,217,869 11,421,647
PROPERTY AND EQUIPMENT, net of depreciation of
$3,478,922 in March and $2,949,994 in June 2,443,754 2,544,234
NATIONAL BASKETBALL ASSOCIATION FRANCHISE,
net of amortization of $1,842,225 in March
and $1,696,640 in June 4,327,356 4,472,941
NETWORK AFFILIATION AND OTHER INTANGIBLE ASSETS,
net of amortization of $468,732 in March
and $393,043 in June 4,100,054 3,308,911
OTHER ASSETS 2,338,720 1,693,424
------------ ------------
$195,696,722 $102,933,466
============ ============
4
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 7,999,262 $8,758,022
Deferred game revenues 5,060,676
Ticket refunds payable 122,348 126,262
Program broadcast rights payable - current portion 6,216,331 6,023,495
Federal and state income taxes payable 2,763,158 100,000
Notes payable to bank 85,000,000 5,000,000
Deferred compensation - current portion 5,214,310 3,281,101
------------ ------------
TOTAL CURRENT LIABILITIES 112,376,085 23,288,880
PROGRAM BROADCAST RIGHTS - noncurrent portion 10,507,340 8,566,453
DEFERRED FEDERAL AND STATE INCOME TAXES 6,000,000 2,900,000
CONVERTIBLE SUBORDINATED NOTE PAYABLE 10,000,000 10,000,000
NOTES PAYABLE TO BANK 50,000,000 50,000,000
DEFERRED COMPENSATION - noncurrent portion 15,209,937 18,248,329
OTHER NON-CURRENT LIABILITIES 2,659,375 850,000
MINORITY INTEREST IN BCBLP 2,915,821 1,909,304
PARTNERS' CAPITAL (DEFICIT)
Boston Celtics Limited Partnership -
General Partner (142,235) (127,387)
Limited Partners (13,959,120) (12,542,458)
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(14,101,355) (12,669,845)
Celtics Limited Partnership - General Partner (2,144) (54,311)
Boston Celtics Communications Limited Partnership
- General Partner 52,261 (122,686)
Boston Celtics Broadcasting Limited Partnership
- Limited Partner 79,402 17,342
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TOTAL PARTNERS' CAPITAL (DEFICIT) (13,971,836) (12,829,500)
------------ ------------
$195,696,722 $102,933,466
============ ============
See notes to consolidated financial statements.
5
BOSTON CELTICS LIMITED PARTNERSHIP
and Subsidiaries
Consolidated Statements of Income (Loss)
Unaudited
Nine Months Ended Three Months Ended
-------------------------- --------------------------
March 31, March 31, March 31, March 31,
1995 1994 1995 1994
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Revenues:
Basketball regular season -
Ticket sales $18,708,000 $16,205,000 $11,330,000 $ 9,140,000
Television and radio broadcast rights fees 17,469,000 15,357,732 10,580,000 8,925,732
Other, principally promotional advertising 6,744,000 4,529,000 4,084,000 2,994,000
Television and radio broadcast revenues 37,662,032 27,928,111 11,194,748 8,527,647
----------- ----------- ----------- -----------
80,583,032 64,019,843 37,188,748 29,587,379
----------- ----------- ----------- -----------
Costs and expenses:
Basketball regular season -
Team 26,643,000 18,376,000 16,136,000 10,202,000
Game 2,124,000 1,957,000 1,286,000 1,128,000
Amortization of program broadcast rights 7,755,202 8,979,460 2,379,093 2,830,285
Other television and radio operating 3,465,756 5,367,594 1,264,722 1,778,709
General and administrative 12,369,264 12,881,385 4,299,473 5,052,420
Selling and promotional 6,524,978 6,456,966 2,104,589 2,040,062
Depreciation 594,242 900,131 195,475 287,887
Amortization of NBA franchise
and other intangible assets 309,811 951,758 93,695 549,914
----------- ----------- ----------- -----------
59,786,253 55,870,294 27,759,047 23,869,277
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20,796,779 8,149,549 9,429,701 5,718,102
Interest expense, including for the nine month periods
$867,401 in 1995 and $795,403 in 1994 related
to deferred compensation obligations (7,106,124) (4,076,547) (2,688,691) (1,357,197)
Interest income 4,743,654 1,935,022 2,029,192 858,060
Net realized and unrealized gains (losses)
on disposition of assets and investments 50,096 11,767,743 476,969 (3,285,235)
Net proceeds from life insurance 5,592,143
Minority interest in earnings of BCBLP (4,780,517) (659,671) (1,328,812) (288,902)
----------- ----------- ----------- -----------
Income before income taxes 13,703,888 22,708,239 7,918,359 1,644,828
Provision for Income Taxes 5,150,000 2,800,000 1,900 000
----------- ----------- ----------- -----------
Net income 8,553,888 19,908,239 6,018,359 1,644,828
Net income applicable to interests of General Partners 370,970 536,500 175,027 90,836
----------- ----------- ----------- -----------
Net income applicable to interests of Limited Partners $ 8,182,918 $19,371,739 $ 5,843,332 $ 1,553,992
=========== =========== =========== ===========
Per unit:
Net income $1.28 $3.03 $0.91 $0.24
Average units outstanding throughout the period 6,399,722 6,399,722 6,399,722 6,399,722
See notes to consolidated financial statements.
6
BOSTON CELTICS LIMITED PARTNERSHIP
and Subsidiaries
Consolidated Statements of Cash Flows
Unaudited
For the Nine Months Ended
-----------------------------
March 31, March 31,
1995 1994
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CASH FLOWS FROM OPERATING ACTIVITIES
Receipts:
Basketball regular season receipts:
Ticket sales $ 22,012,356 $ 19,987,101
Television and radio broadcast rights fees 13,877,667 11,826,399
Other, principally promotional advertising 5,193,812 3,921,517
Television and radio broadcast receipts 36,553,992 29,538,823
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77,637,827 65,273,840
Costs and expenses:
Basketball regular season expenditures:
Team expenses 20,238,088 18,053,605
Game expenses 2,460,071 2,329,168
Payments for program broadcast rights 7,038,422 8,247,246
Other television and radio operating expenses 3,368,488 6,123,070
General and administrative expenses 12,924,900 10,777,585
Selling and promotional expenses 7,035,474 6,209,834
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53,065,443 51,740,508
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24,572,384 13,533,332
Interest income 3,065,086 1,932,924
Interest expense (3,401,869) (3,517,366)
Ticket refunds paid (3,914) (1,833,366)
Payment of income taxes (3,748,587)
Proceeds from issuance of option for acquisition
of 26% ownership interest in BCBLP 14,850,000
Insurance proceeds received 17,000,000
Payment of deferred compensation (2,500,185) (2,785,184)
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NET CASH FLOWS FROM OPERATING ACTIVITIES 17,982,915 39,180,340
CASH FLOWS (USED BY) FROM INVESTING ACTIVITIES
Purchases of marketable securities
and short term investments (176,689,849) (73,443,867)
Proceeds from sales of marketable securities
and short term investments 84,330,695 41,068,803
Capital expenditures (499,014) (438,825)
Other receipts (expenditures) (1,030,346) (975,197)
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NET CASH (USED BY) FROM INVESTING ACTIVITIES (93,888,514) (33,789,086)
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7
NET CASH FLOWS (USED BY) FROM OPERATING
AND INVESTING ACTIVITIES (75,905,599) 5,391,254
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank borrowings 85,000,000 15,000,000
Payment of bank borrowings (5,000,000) (15,000,000)
Purchase of general partner's interest in BCCLP (792,000)
Distributions by Boston Celtics Broadcasting
Limited Partnership to FTS, Inc. and to Celtics
Communications, Inc. pursuant to terms of the
Fox Agreement, as amended (3,848,000)
Distributions to Boston Celtics Limited Partnership
unitholders - $1.50 per unit in 1994 and $1.25
per unit in 1993 (9,697,083) (8,080,902)
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NET CASH FLOWS (USED BY) FROM FINANCING ACTIVITIES 65,662,917 (8,080,902)
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NET INCREASE (DECREASE) IN CASH (10,242,682) (2,689,648)
Cash and cash equivalents at beginning of period 38,093,082 10,048,047
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CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 27,850,400 $ 7,358,399
============ ============
See notes to consolidated financial statements.
8
Notes to Consolidated Financial Statements
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BOSTON CELTICS LIMITED PARTNERSHIP AND SUBSIDIARIES
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Note 1 - Basis of Presentation
The unaudited interim consolidated financial statements of Boston
Celtics Limited Partnership include the accounts of the partnership
and its wholly owned subsidiary corporations and its 99% owned
limited partnership interests, which own and operate the Boston
Celtics professional basketball team of the National Basketball
Association and Television Station WFXT - Channel 25 in Boston, and
which owned and operated Radio Station WEEI - AM 590 in Boston until
its sale on June 30, 1994.
On November 29, 1994 BCCLP and Fox Television, Inc. (FTS) amended
their October 1993 agreement (the "Fox Agreement") relating to the
ownership of BCBLP, the licensee of WFXT. Pursuant to this
amendment, FTS agreed to expeditiously complete the acquisition of
sole ownership of BCBLP by the exercise of its existing option and
conversion rights for an aggregate of 51% ownership interest and to
purchase the remaining 49% of BCBLP for $80 MM payable in cash at the
closing. A closing under the agreement will be subject to regulatory
approvals. If the required FCC order approving the transfer of the
WFXT broadcast license to FTS is not received by September 15, 1995,
FTS has the option, among others, of acquiring BCBLP pursuant to
terms of the original agreement before amendment except that the
purchase price of the 49% interest in BCBLP will be $80 MM instead of
a minimum of $45 MM. For financial reporting purposes the excess
($14.6 MM) of the proceeds from the issuance of the option over the
carrying value of such interest was included in earnings in the nine
month period ended March 31, 1994. At March 31, 1995 $4.4 MM of
costs, principally recapturable deferred income tax benefits, related
to this transaction are included in Other Current Assets and Deferred
Charges on the balance sheet.
Note 2 - Interim Accounting for Regular Season Basketball Revenues and Costs
Revenues and costs applicable to the regular season are recognized
in income proportionately over the 82 games played in the regular
season. The excess of revenue received or costs incurred over
amounts recognized in income are included in Deferred Game Costs or
Deferred Game Revenues on the Balance Sheet.
9
Note 3 - Notes Payable to Bank
BCCLP borrowed $85 million pursuant to financing agreements dated
September 15, 1994 and October 31, 1994 with the Partnership's
commercial bank which is included in Notes Payable to Bank in current
liabilities on the balance sheet at March 31, 1995. The loan bears
interest at the LIBOR rate plus three quarters of one percent from
September 15 to October 31, 1994 and at the LIBOR rate plus one
percent thereafter and is payable June 30, 1995. The October 31,
1994 agreement provides that the loan will be secured by a pledge of
BCCLP's partnership interests in BCBLP subject to the rights of FTS,
an assignment to the bank of the proceeds from the sale of
partnership interests to FTS (See Note 1) and maintenance of $30
million of liquid assets by BCLP as support for BCCLP's performance
under the financing agreements. Of the proceeds from the borrowings,
$75 million has been invested in short term investments, principally
commercial loan participations, included in Other Short Term
Investments on the balance sheet.
Note 4 - Options to Acquire Units of Partnership Interest
Net income was charged $1,809,000 during the nine months ended
March 31, 1995 in respect of options to acquire units of partnership
interest issued in the year ended June 30, 1994. No options were
issued, exercised or vested during the nine months ended March 31,
1995.
10
Management's Discussion and Analysis of Financial
Condition and Results of Operations
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BOSTON CELTICS LIMITED PARTNERSHIP AND SUBSIDIARIES
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General
The Partnership had a consolidated net income of $8,554,000 or
$1.28 per Unit on revenues of $80,583,000 in the nine months ended
March 31, 1995 compared with consolidated net income of $19,908,000
or $3.03 per Unit on revenues of $64,020,000 in the nine months ended
March 31, 1994. The Partnership had a consolidated net income of
$6,018,000 or $0.91 per Unit on revenues of $37,189,000 in the three
months ended March 31, 1995 compared with consolidated net income of
$1,645,000 or $.24 per Unit on revenues of $29,587,000 in the three
months ended March 31, 1994. The Partnership had consolidated cash
flows from operating activities of $17,983,000 in the nine months
ended March 31, 1995 compared with consolidated cash flows from
operating activities of $39,180,000 in the nine months ended March
31, 1994. Consolidated results of operations and consolidated cash
flows include the results of operations and cash flows of the
Partnership and its subsidiary partnerships which own and operate the
Boston Celtics basketball team of the National Basketball Association
("Boston Celtics"), Television Station WFXT - Channel 25 of Boston,
Massachusetts and which owned and operated Radio Station WEEI - 590
AM of Boston, Massachusetts until its sale on June 30, 1994.
The Boston Celtics derive revenues principally from the sale of
tickets to home games and the licensing of television, cable network
and radio rights. A large portion of the Boston Celtics' annual
revenues and operating expenses are determinable at the commencement
of each basketball season based on season ticket sales and the Boston
Celtics' multi-year contracts with its players and broadcast
organizations.
For financial reporting purposes the Boston Celtics recognize
revenues and expenses on a game-by-game basis. Because the NBA
regular season begins in November, the first quarter which ends on
September 30th will generally include limited or no revenue and will
reflect a loss attributable to general and administrative expenses
incurred in the quarter. Based on the present NBA game schedule, the
Partnership will generally recognize approximately one-third of its
annual regular season revenue in the second quarter, approximately
one-half of such revenue in the third quarter and the remainder in
the fourth quarter, and it will recognize all of its playoff revenue
in the fourth quarter.
Television and radio revenues, principally advertising sold to
sponsors for commercials during program broadcasting, including
Boston Celtics basketball games, are recognized when the commercials
are broadcast. Operating expenses, principally broadcast production
related costs, are expensed as incurred and program broadcast rights
are amortized on a straight line method generally based on the usage
of the product or the term of the license. Broadcast operations are
seasonal.
11
Results of Operations
The following discussion compares results of operations of the
Partnership and its subsidiaries for the nine months ended March 31,
1995 compared with the nine months ended March 31, 1994.
The Boston Celtics recognize revenues and direct expenses for
the basketball operations ratably over the regular season games
played.
Revenues from ticket sales recognized in income increased
$2,503,000 or 15% in the nine month period ended March 31, 1995
compared to the same period in 1994 primarily as a result of an
increase in ticket prices ($1,791,000) and as a result of playing
three more games in 1995 than in 1994 ($712,000).
Television and radio revenues increased $2,111,000 or 14% in the
nine month period ended March 31, 1995 compared to the same period in
1994 primarily as a result of playing three more games in 1995 than
in 1994 ($670,000) and the sale of radio broadcast rights to an
unrelated party in 1995 ($1,500,000).
Other regular season revenues increased by $2,215,000 or 49% in the
nine month period ended March 31, 1995 compared to the same period in
1994. This is primarily as a result of an increased emphasis on
marketing and promotion attributable in part to the promotion of the
final season in the Boston Garden and the expected move into the new
Shawmut Center next season ($1,550,000), increased payments from NBA
Properties ($476,000) and as a result of playing more additional
games in 1995 than in 1994 ($200,000).
Television and radio broadcast revenues increased $9,734,000 or 35%
in the nine month period ended March 31, 1995 compared to the same
period in 1994. These increases are attributable primarily to
overall market growth and increased ratings associated with the
television operation's syndicated and Fox network programming
($14,788,000) partially offset by the lack of radio operating revenue
in 1994 following the sale of WEEI - 590 AM on June 30, 1994
($5,053,000).
Team expenses increased $8,267,000 or 45% in the nine month period
ended March 31, 1995 compared to the same period in 1994. These
increases are attributable primarily to increases in players
compensation ($7,457,000) and as a result of playing three more games
in 1995 than in 1994 ($810,000).
Games expenses, which consist primarily of arena rental payments,
NBA assessments on gate receipts and costs of exhibition games
increased $167,000 or 9% primarily as a result of an increase in
league assessments due to increased ticket revenues ($90,000) and as
a result of playing three more games in 1995 than in 1994 ($86,000).
12
Amortization of program broadcast rights decreased $1,224,000 or
14% in the nine month period ended March 31, 1995 compared to the
same period in 1994, primarily because of the expiration of program
contracts not requiring replacement ($1,567,000) and the lack of
radio program expenses in 1995 ($574,000) following the sale of WEEI
- - - - -590 AM partially offset by the costs of new television programs such
as the Simpsons and special coverage of New England Patriots football
($917,000).
Other television and radio operating expenses, consisting
principally of production, programming, engineering and occupancy
expenses decreased $1,902,000 or 35% in the nine month period ended
March 31, 1995 compared to the same period in 1994. The decrease was
primarily due to lack of radio operating expenses in 1994 following
the sale of WEEI - 590 AM ($3,500,000) partially offset by increased
production costs for the 10:00 PM newscast and a weekly sports
program ($518,000). Additionally, the comparable period in 1994
included a credit related to the settlement of prior years music
license fees ($1,084,000).
Total depreciation and amortization decreased $948,000 or 51% in
the nine month period ended March 31, 1995 compared to the same
period in 1994. The decrease is primarily attributable to the lack
of radio operating expenses in 1995 ($958,000) following the sale of
WEEI - 590 AM.
Interest expense increased $3,030,000 or 74% in the nine months
ended March 31, 1995 compared to the same period in 1994 primarily as
a result of the debt service on the $85,000,000 bank borrowing which
commenced on September 15, 1994.
Interest income increased $2,809,000 or 145% in the nine month
period ended March 31, 1995 compared to the same period in 1994. The
earnings are attributable to the interest earned on the short-term
investment of available funds.
The following discussion compares results of operations of the
Partnership and its subsidiaries for the three months ended March 31,
1995 compared with the three months ended March 31, 1994.
Revenues from ticket sales recognized in income increased
$2,190,000 or 24% in the three month period ended March 31, 1995
compared to the same period in 1994 primarily as a result of an
increase in ticket prices ($1,215,000) and as a result of playing
four more games in 1995 than in 1994 ($975,000).
Television and radio revenues increased $1,654,000 or 19% in the
three month period ended March 31, 1995 compared to the same period
in 1994 primarily as a result of playing four more games in 1995 than
in 1994 ($800,000) and the sale of radio broadcast rights to an
unrelated party in 1995 ($845,000).
13
Other regular season revenues increased by $1,090,000 or 36% in the
three month period ended March 31, 1995 compared to the same period
in 1994. This is primarily as a result of an increased emphasis on
marketing and promotion attributable in part to the promotion of the
final season in the Boston Garden and the expected move into the new
Shawmut Center next season ($886,000) and playing four more games in
1995 than in 1994 ($267,000).
Television and radio broadcast revenues increased $2,667,000 or 31%
in the three month period ended March 31, 1995 compared to the same
period in 1994. These increases are attributable primarily to
overall market growth and increased ratings associated with the
television operation's syndicated and Fox network programming
($4,404,000) partially offset by the lack of radio operating revenue
in 1994 following the sale of WEEI - 590 AM on June 30, 1994
($1,737,000).
Team expenses increased $5,934,000 or 58% in the three month period
ended March 31, 1995 compared to the same period in 1994. These
increases are attributable primarily to increases in players
compensation ($4,854,000) and as a result of playing four more games
in 1995 than in 1994 ($1,080,000).
Games expenses, which consist primarily of arena rental payments,
NBA assessments on gate receipts and costs of exhibition games
increased $158,000 or 14% primarily as a result of an increase in
league assessments due to increased ticket revenues ($43,000) and as
a result of playing four more games in 1995 than in 1994 ($115,000).
Amortization of program broadcast rights decreased $451,000 or 16%
in the three month period ended March 31, 1995 compared to the same
period in 1994, primarily because of the expiration of program
contracts which did not need to be replaced ($510,000) and the lack
of radio program expenses in 1994 ($275,000) following the sale of
WEEI - 590 AM partially offset by the costs of new television
programs such as the Simpsons and special coverage of New England
Patriots football ($333,000).
Other television and radio operating expenses, consisting
principally of production, programming, engineering and occupancy
expenses decreased $514,000 or 29% in the three month period ended
March 31, 1995 compared to the same period in 1994. The decrease was
due to lack of radio operating expenses in 1994 ($1,293,000)
following the sale of WEEI - 590 AM partially offset by increased
production costs for the 10:00 PM newscast and a weekly sports
program ($184,000). Additionally, the comparable period in 1993
included a credit related to the settlement of prior years music
license fees ($526,000).
General and administrative expenses decreased $753,000 or 15% in
the three month period ended March 31, 1995 compared to the
comparable period in 1994. The decrease in 1995 was primarily
attributable to a the lack of radio operating expenses in 1995
($392,000) following the sale of WEEI - 590 AM. Additionally, the
comparable period in 1994 included non-recurring legal costs related
to the sale of ownership interests in BCBLP and radio station WEEI
($389,000).
14
Total depreciation and amortization decreased $549,000 or 65% in
the three month period ended March 31, 1995 compared to the same
period in 1994. The decrease is primarily attributable to the lack
of radio operating expenses in 1994 ($552,000) following the sale of
WEEI - 590 AM.
Interest expense increased $1,331,000 or 98% in the three months
ended March 31, 1995 compared to the same period in 1994 primarily as
a result of the debt service on the $85,000,000 bank borrowing which
commenced on September 15, 1994.
Interest income increased $1,171,000 or 136% in the three month
period ended March 31, 1995 compared to the same period in 1994. The
earnings are attributable to the interest earned on the short-term
investment of available funds.
Liquidity and Capital Resources
At March 31, 1995 the Partnership had approximately $28,000,000 of
available cash, $43,000,000 of marketable securities and $73,000,000
of other short term investments. Sources of funds for the
partnerships consist of capital contributions from partners, proceeds
from commercial bank borrowings and funds generated by operations.
These resources may be used to repay commercial bank borrowings, for
general partnership purposes, for working capital needs or for
possible acquisitions. The Partnership is not engaged in any
negotiations relating to and has not made any commitments in
connection with any such possible acquisitions. Management believes
that its cash, cash equivalents and marketable securities together
with cash from operations will provide adequate cash for the
Partnership and its subsidiaries to meet their cash requirements
through March 31, 1996.
The collective bargaining agreement with the NBA Players
Association expired on June 23, 1994. Although management expects
that an acceptable collective bargaining agreement with the Players
Association will be reached, no assurance can be given as to when
such agreement might be reached, its terms or their impact on the
Partnership's operations.
See Note 1 of the Notes to the Consolidated Financial Statements
for a discussion of a proposed sale of Partnership interests in BCBLP
to FTS.
15
Part II - Other Information
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BOSTON CELTICS LIMITED PARTNERSHIP AND SUBSIDIARIES
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ITEM 6 - Exhibits and Reports on Form 8-K
Exhibits -
None.
Reports on Form 8-K -
None.
16
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of
1934, as amended, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.
BOSTON CELTICS LIMITED PARTNERSHIP
---------------------------------------
(Registrant)
By: Celtics, Inc., its General Partner
Dated: May 12, 1995 By: /s/ Thomas M. Bartlett, Jr.
----------------------------------
Thomas M. Bartlett, Jr.
Executive Vice President
and Chief Financial Officer
17