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 September 30, 1996
------------------
[ ] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from to
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Commission File Number: 0-11911
CABLE TV FUND 11-B, LTD.
- --------------------------------------------------------------------------------
Exact name of registrant as specified in charter
Colorado 84-0908730
- --------------------------------------------------------------------------------
State of organization I.R.S. employer I.D.#
9697 East Mineral Avenue, P.O. Box 3309, Englewood, Colorado 80155-3309
-------------------------------------------------------------------------
Address of principal executive office
(303) 792-3111
-----------------------------------
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
----- -----
CABLE TV FUND 11-B, LTD.
------------------------
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
------------------------
September 30, December 31,
ASSETS 1996 1995
------ ------------- -------------
CASH $ 11,377 $ 325,270
RECEIVABLES:
Trade receivables, less allowance for doubtful
receivables of $-0- and $65,516 at September 30, 1996
and December 31, 1995, respectively - 554,478
INVESTMENT IN CABLE TELEVISION PROPERTIES:
Property, plant and equipment, at cost - 45,527,837
Less- accumulated depreciation - (19,238,591)
-------- ------------
- 26,289,246
Investment in cable television joint venture 620,074 585,797
-------- ------------
Total investment in cable television properties 620,074 26,875,043
DEPOSITS, PREPAID EXPENSES AND DEFERRED CHARGES - 398,874
-------- ------------
Total assets $631,451 $ 28,153,665
======== ============
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
2
CABLE TV FUND 11-B, LTD.
------------------------
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
------------------------
September 30, December 31,
LIABILITIES AND PARTNERS' CAPITAL 1996 1995
- ----------------------------------------------------- -------------- -------------
LIABILITIES:
Debt $ - $ 23,807,849
Trade accounts payable and accrued liabilities - 1,538,262
Subscriber prepayments - 51,498
------------ ------------
Total liabilities - 25,397,609
------------ ------------
PARTNERS' CAPITAL:
General Partner-
Contributed capital 1,000 1,000
Distributions (14,006,243) -
Accumulated earnings 591,225 52,221
------------ ------------
(13,414,018) 53,221
------------ ------------
Limited Partners-
Net contributed capital
(38,026 units outstanding at September 30, 1996
and December 31, 1995) 15,661,049 15,661,049
Distributions (61,031,851) (19,013,121)
Accumulated earnings 59,416,271 6,054,907
------------ ------------
14,045,469 2,702,835
------------ ------------
Total liabilities and partners' capital $ 631,451 $ 28,153,665
============ ============
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
3
CABLE TV FUND 11-B, LTD.
------------------------
(A Limited Partnership)
UNAUDITED STATEMENTS OF OPERATIONS
----------------------------------
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
---------------------------- ---------------------------
1996 1995 1996 1995
------------ ----------- ------------ ------------
REVENUES $ - $3,616,482 $ 3,709,304 $10,592,184
COSTS AND EXPENSES:
Operating expenses - 2,110,590 2,481,210 5,998,062
Management fees and
allocated overhead
from General Partner - 423,050 446,396 1,275,876
Depreciation and
amortization - 732,393 975,498 2,197,401
--------- ---------- ----------- -----------
OPERATING INCOME (LOSS) - 350,449 (193,800) 1,120,845
--------- ---------- ----------- -----------
OTHER INCOME (EXPENSE):
Interest expense - (463,205) (508,989) (1,350,904)
Gain on sale of cable television
system (963,391) - 54,899,888 -
Other, net 267,896 53,878 (331,008) 123,072
--------- ---------- ----------- -----------
Total other income
(expense), net (695,495) (409,327) 54,059,891 (1,227,832)
--------- ---------- ----------- -----------
INCOME (LOSS) BEFORE EQUITY
IN NET INCOME OF CABLE
TELEVISION JOINT VENTURE (695,495) (58,878) 53,866,091 (106,987)
EQUITY IN NET INCOME OF
CABLE TELEVISION JOINT
VENTURE 17,606 12,902 34,277 23,975
--------- ---------- ----------- -----------
NET INCOME (LOSS) $(677,889) $ (45,976) $53,900,368 $ (83,012)
========= ========== =========== ===========
ALLOCATION OF NET
INCOME (LOSS):
General Partner $ (6,779) $ (460) $ 539,004 $ (830)
========= ========== =========== ===========
Limited Partners $(671,110) $ (45,516) $53,361,364 $ (82,182)
========= ========== =========== ===========
NET INCOME (LOSS) PER LIMITED
PARTNERSHIP UNIT $ (17.64) $ (1.20) $ 1,403.29 $ (2.16)
========= ========== =========== ===========
WEIGHTED AVERAGE NUMBER
OF LIMITED PARTNERSHIP
UNITS OUTSTANDING 38,026 38,026 38,026 38,026
========= ========== =========== ===========
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
4
CABLE TV FUND 11-B, LTD.
------------------------
(A Limited Partnership)
UNAUDITED STATEMENTS OF CASH FLOWS
----------------------------------
For the Nine Months Ended
September 30,
--------------------------
1996 1995
------------ -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 53,900,368 $ (83,012)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 975,498 2,197,401
Equity in net income of cable television joint
venture (34,277) (23,975)
Gain on sale of cable television system (54,899,888) -
Decrease in receivables 554,478 58,957
Increase in deposits, prepaid expenses and
deferred charges (746,388) (175,769)
Decrease in trade accounts payable, accrued liabilities
and subscriber prepayments (1,589,760) (985,156)
------------ -----------
Net cash provided by (used in) operating activities (1,839,969) 988,446
------------ -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (541,102) (3,176,212)
Proceeds from the sale of cable television system 81,900,000 -
------------ -----------
Net cash provided by (used in) investing activities 81,358,898 (3,176,212)
------------ -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of debt (25,007,849) (370,447)
Proceeds from borrowings 1,200,000 3,900,000
Distributions to partners (56,024,973) -
Decrease in advances from General Partner - (1,305,421)
------------ -----------
Net cash provided by (used in) financing activities (79,832,822) 2,224,132
------------ -----------
Increase (decrease) in cash (313,893) 36,366
Cash, beginning of period 325,270 139,532
------------ -----------
Cash, end of period $ 11,377 $ 175,898
============ ===========
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ 726,197 $ 1,423,995
============= ===========
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
5
CABLE TV FUND 11-B, LTD.
------------------------
(A Limited Partnership)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
---------------------------------------
(1) 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 Balance Sheets 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 Cable TV Fund 11-B, Ltd. (the
"Partnership") at September 30, 1996 and December 31, 1995, its Statements of
Operations for the three and nine month periods ended September 30, 1996 and
1995 and its Statements of Cash Flows for the nine month periods ended September
30, 1996 and 1995. Results of operations for these periods are not necessarily
indicative of results to be expected for the full year.
(2) The Partnership is a Colorado limited partnership that was formed pursuant
to the public offering of limited partnership interests in the Cable TV Fund 11
Limited Partnership Program (the "Program"), which was sponsored by Jones
Intercable, Inc. (the "General Partner"), to acquire, own and operate cable
television systems in the United States. Cable TV Fund 11-A, Ltd. ("Fund 11-A"),
Cable TV Fund 11-C, Ltd. ("Fund 11-C") and Cable TV Fund 11-D, Ltd. ("Fund 11-
D") are the other partnerships that were formed pursuant to the Program. The
Partnership, Fund 11-A, Fund 11-C and Fund 11-D formed a general partnership
known as Cable TV Joint Fund 11 (the "Venture") in which the Partnership owns an
8 percent interest. Until April 1, 1996, the Partnership directly owned the
cable television system serving areas in and around Lancaster, New York (the
"New York System"). The Venture owns the cable television system serving
subscribers in Manitowoc, Wisconsin (the "Manitowoc System").
The General Partner manages the Partnership and the Venture and receives a
fee for its services equal to 5 percent of the gross revenues of the Partnership
and the Venture, excluding revenues from the sale of the cable television
systems or franchises. Reflecting the Partnership's sale of the New York System
on April 1, 1996, management fees for the three and nine month periods
ended September 30, 1996 (excluding Fund 11-B's 8 percent interest in the
Venture) were $-0- and $185,465, respectively, compared to $180,824 and
$529,609, respectively, for the similar 1995 periods.
The Partnership and the Venture reimburse the General Partner for certain
allocated overhead and administrative expenses. These expenses represent the
salaries and related benefits paid for corporate personnel, rent, data
processing services and other corporate facilities costs. Such personnel
provide engineering, marketing, administrative, accounting, legal and investor
relations services to the Partnership and the Venture. Allocations of personnel
costs are primarily based upon actual time spent by employees of the General
Partner with respect to each partnership managed. Remaining expenses are
allocated based on the pro rata relationship of the Partnership's revenues to
the total revenues of all systems owned or managed by the General Partner and
certain of its subsidiaries. Systems owned by the General Partner and all other
systems owned by partnerships for which Jones Intercable, Inc. is the general
partner are also allocated a proportionate share of these expenses. The General
Partner believes that the methodology used in allocating overhead and
administrative expenses is reasonable. Reflecting the Partnership's sale of the
New York System on April 1, 1996, reimbursements to the General Partner by the
Partnership for allocated overhead and administrative expenses for the three and
nine month periods ending September 30, 1996 (excluding Fund 11-B's 8 percent
interest in the Venture) were $-0- and $260,931, respectively, compared to
$242,226 and $746,267, respectively, for the similar 1995 periods.
(3) On April 1, 1996, the Partnership completed the sale of the New York System
to an unaffiliated cable television system operator for a sales price of
$84,000,000, subject to normal working capital closing adjustments. This
transaction was approved by a majority of the Partnership's limited partnership
interests in a vote conducted during the first quarter of 1996. Upon
consummation of the sale of the New York System, the Partnership paid all of its
indebtedness, which totaled $24,924,958 at April 1, 1996, a sales tax liability
of $963,391, a brokerage fee of $2,100,000 to The Jones Group, Ltd., a
subsidiary of the General Partner, and then the Partnership distributed the
approximate $56,025,000 remaining proceeds to its partners of record as of
February 29, 1996. Because limited partners had already received distributions
in an amount equal to 100 percent of the capital initially contributed to the
Partnership by the limited partners, the net proceeds from the New York System's
sale were distributed 75 percent to the limited partners and 25 percent to the
General Partner. The limited partners of the Partnership, as a group, received
approximately $42,018,700 and the General Partner received approximately
$14,006,300 in April 1996. Limited partners received $1,105 for each $500
limited partnership interest, or $2,210 for each $1,000 invested in the
Partnership, from the net proceeds of the New York System's sale. The limited
partners have received a total of $1,605 for each $500 limited partnership
interest, or $3,210 for each $1,000 invested in
6
the Partnership, taking into account all distributions to limited partners. The
Partnership will continue to own its 8 percent interest in the Venture until the
Manitowoc System also is sold. Upon the closing of the sale of the Venture's
Manitowoc System, the Partnership will be liquidated and dissolved.
The Venture has entered into an asset purchase agreement to sell the
Manitowoc System to the General Partner. Because the City of Manitowoc had not
consented to the transfer of the franchise by the asset purchase agreement's
original expiration date of September 30, 1996, the Venture and the General
Partner amended the asset purchase agreement to extend the period in which to
close the sale of the Manitowoc System to June 30, 1997. The amendment also
provides for the purchase price to be the greater of (i) $15,735,667, which was
the average of three independent appraisals of the Manitowoc System obtained by
the Venture in 1995, and (ii) the average of three updated appraisals of the
Manitowoc System. The average of the three appraisals obtained by the Venture
in November 1996 was $16,122,333. Accordingly, under the terms of the
asset purchase agreement, as amended, the purchase price of the Manitowoc System
will be $16,122,333.
The closing of the sale of the Manitowoc System is subject to the approval
of the City of Manitowoc and the approval of the limited partners of each of the
partnerships that comprise the Venture. There can be no assurance that any
such approvals will be obtained. In October 1996, the Venture and the General
Partner filed an updated request for the approval of the City of Manitowoc to
the transfer of the franchise. The General Partner, on behalf of the
partnerships that comprise the Venture, is in the process of preparing proxy
solicitation materials to seek the approval of the limited partners of the four
constituent partnerships of the Venture.
The original term of the franchise with the City of Manitowoc expired in
1995. The franchise has been extended by the Venture and the City of Manitowoc
periodically since that time. The current extension ends on December 31, 1996.
If the franchise is not renewed by such date, the General Partner will seek an
additional extension from the City in order to complete the renewal of the
franchise and to obtain the City's consent to the transfer of the franchise to
the General Partner.
(4) Financial information regarding the Venture is presented below.
UNAUDITED BALANCE SHEETS
------------------------
September 30, December 31,
1996 1995
------------- ------------
ASSETS
------
Cash and trade receivables $ 3,586,055 $ 3,117,775
Investment in cable television properties 2,443,945 2,516,657
Other assets 1,872,039 1,869,614
------------- -------------
Total assets $ 7,902,039 $ 7,504,046
============= =============
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
Debt $ 4,775 $ 9,917
Payables and accrued liabilities 404,926 442,372
Partners' contributed capital 45,000,000 45,000,000
Distributions (118,914,493) (118,914,493)
Accumulated earnings 81,406,831 80,966,250
------------- -------------
Total liabilities and partners'
capital $ 7,902,039 $ 7,504,046
============= =============
7
UNAUDITED STATEMENTS OF OPERATIONS
----------------------------------
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
-------------------------- -------------------------
1996 1995 1996 1995
------------ ---------- ----------- ----------
Revenues $932,834 $929,672 $2,770,517 $2,684,022
Operating expenses 548,465 560,668 1,662,876 1,735,366
Management fees and allocated overhead
from Jones Intercable, Inc. 107,213 115,317 332,515 339,444
Depreciation and amortization 107,926 139,565 323,984 418,694
------------ ---------- ----------- ----------
Operating income 169,230 114,122 451,142 190,518
Interest expense (646) (511) (7,916) (9,212)
Interest income 59,756 52,013 175,214 125,834
Other, net (2,045) 209 (177,859) 1,024
------------ ---------- ----------- ----------
Net income $226,295 $165,833 $ 440,581 $ 308,164
============ ========== =========== ==========
Management fees paid to the General Partner by the Venture totaled $46,642
and $138,526 for the three and nine months ended September 30, 1996,
respectively, and $46,483 and $134,201 for the comparable 1995 periods.
Reimbursements for general and administrative expenses paid to the General
Partner by the Venture totaled $60,571 and $193,989 for the three and nine month
periods ended September 30, 1996, respectively, and $68,834 and $205,243 for the
comparable 1995 periods.
Management fees paid to the General Partner by the Venture and attributable
to the Partnership's interest totaled $3,628 and $10,777 for the three and nine
month periods ended September 30, 1996, respectively, and $3,616 and $10,441 for
the comparable 1995 periods. Reimbursements for overhead and administrative
expense paid to the General Partner by the Venture and attributable to the
Partnership's interest totaled $4,712 and $15,092 for the three and nine month
periods ended September 30, 1996, respectively, and $5,355 and $15,968 for the
comparable 1995 periods.
(5) Certain prior year amounts have been reclassed to conform to the 1996
presentation.
8
CABLE TV FUND 11-B, LTD.
------------------------
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
FINANCIAL CONDITION
- -------------------
On April 1, 1996, the Partnership completed the sale of the New York System
to an unaffiliated cable television system operator for a sales price of
$84,000,000, subject to normal working capital closing adjustments. This
transaction was approved by a majority of the Partnership's limited partnership
interests in a vote conducted during the first quarter of 1996. Upon
consummation of the sale of the New York System, the Partnership paid all of its
indebtedness, which totaled $24,924,958 at April 1, 1996, a sales tax liability
of $963,391, a brokerage fee of $2,100,000 to The Jones Group, Ltd., a
subsidiary of the General Partner, and then the Partnership distributed the
approximate $56,025,000 remaining proceeds to its partners of record as of
February 29, 1996. Because limited partners had already received distributions
in an amount equal to 100 percent of the capital initially contributed to the
Partnership by the limited partners, the net proceeds from the New York System's
sale were distributed 75 percent to the limited partners and 25 percent to the
General Partner. The limited partners of the Partnership, as a group, received
approximately $42,018,700 and the General Partner received approximately
$14,006,300 in April 1996. Limited partners received $1,105 for each $500
limited partnership interest, or $2,210 for each $1,000 invested in the
Partnership, from the net proceeds of the New York System's sale. The limited
partners have received a total of $1,605 for each $500 limited partnership
interest, or $3,210 for each $1,000 invested in the Partnership, taking into
account all distributions to limited partners. The Partnership will continue to
own its 8 percent interest in the Venture until the Manitowoc System also is
sold. Upon the closing of the sale of the Venture's Manitowoc System, the
Partnership will be liquidated and dissolved.
During the first three months of 1996, the Partnership expended
approximately $541,000 for capital additions in the New York System. The
capital additions were for various enhancements to maintain the value of the
system until it was sold and were funded by cash generated from operations and
the Partnership's credit facility.
The Partnership owns an 8 percent interest in the Venture. The investment
in this cable television joint venture is accounted for under the equity method.
When compared to the December 31, 1995 balance, this investment increased by
$34,277, to $620,074 at September 30, 1996 from $585,797 at December 31, 1995.
This increase represents the Partnership's proportionate share of income
generated by the Venture during the first nine months of 1996.
The Venture has entered into an asset purchase agreement to sell the
Manitowoc System to the General Partner. Because the City of Manitowoc had not
consented to the transfer of the franchise by the asset purchase agreement's
original expiration date of September 30, 1996, the Venture and the General
Partner amended the asset purchase agreement to extend the period in which to
close the sale of the Manitowoc System to June 30, 1997. The amendment also
provides for the purchase price to be the greater of (i) $15,735,667, which was
the average of three independent appraisals of the Manitowoc System obtained by
the Venture in 1995, and (ii) the average of three updated appraisals of the
Manitowoc System. The average of the three appraisals obtained by the Venture in
November 1996 was $16,122,333. Accordingly, under the terms of the asset
purchase agreement, as amended, the purchase price of the Manitowoc System will
be $16,122,333.
The closing of the sale of the Manitowoc System is subject to the approval
of the City of Manitowoc and the approval of the limited partners of each of the
partnerships that comprise the Venture. There can be no assurance that any such
approvals will be obtained. In October 1996, the Venture and the General Partner
filed an updated request for the approval of the City of Manitowoc to the
transfer of the franchise. The General Partner, on behalf of the partnerships
that comprise the Venture, is in the process of preparing proxy solicitation
materials to seek the approval of the limited partners of the four constituent
partnerships of the Venture.
The original term of the franchise with the City of Manitowoc expired in
1995. The franchise has been extended by the Venture and the City of Manitowoc
periodically since that time. The current extension ends on December 31, 1996.
If the franchise is not renewed by such date, the General Partner will seek an
additional extension from the City in order to complete the renewal of the
franchise and to obtain the City's consent to the transfer of the franchise to
the General Partner.
9
During the first nine months of 1996, the Venture expended approximately
$251,000 for capital additions in the Manitowoc System. These capital additions
were for various enhancements to maintain the value of the system until it was
sold and were funded from cash generated from operations.
The Venture had no bank debt outstanding at September 30, 1996.
The Venture has sufficient liquidity and capital resources, including cash
on hand and its ability to generate cash from operations, to meet its
anticipated needs.
RESULTS OF OPERATIONS
- ---------------------
As a result of the sale of the New York System, the results of operations
for the Partnership are reflected solely through its 8 percent interest in the
Venture. Revenues of the Venture increased $3,162, or less than 1 percent, to
$932,834 for the three months ended September 30, 1996 compared to $929,672 for
the comparable 1995 period. Revenues of the Venture increased $86,495, or
approximately 3 percent, to $2,770,517 for the nine months ended September 30,
1996 compared to $2,684,022 for the comparable 1995 period. An increase in the
number of basic subscribers primarily accounted for the increase in revenues for
the three and nine month periods ended September 30, 1996. The number of basic
subscribers increased by 422 subscribers, or approximately 4 percent, to 11,524
at September 30, 1996 from 11,102 at September 30, 1995. No other individual
factor contributed significantly to the increase in revenues.
Operating expenses consist primarily of costs associated with the
administration of the Manitowoc System. The principal cost components are
salaries paid to system personnel, programming expenses, professional fees,
subscriber billing costs, rent for leased facilities, cable system maintenance
expenses and consumer marketing expenses.
Operating expenses in the Manitowoc System decreased $12,203, or
approximately 2 percent, to $548,465 for the three months ended September 30,
1996 compared to $560,668 for the comparable 1995 period. Operating expenses in
the Manitowoc System decreased $72,490, or approximately 4 percent, to
$1,662,876 for the nine months ended September 30, 1996 compared to $1,735,366
for the comparable 1995 period. Operating expenses represented approximately 59
percent and 60 percent, respectively, of revenues for the three and nine month
periods of 1996 and approximately 60 percent and 65 percent, respectively, for
the comparable 1995 periods. The decreases in operating expenses for the three
and nine month periods were due to a significant decrease in property taxes, as
a result of a change in the method used to assess the assets of the Manitowoc
System. No other individual factor significantly affected the decreases in
operating expenses.
Management fees and allocated overhead from the General Partner decreased
$8,104, or approximately 7 percent, to $107,213 for the three months ended
September 30, 1996 compared to $115,317 for the comparable 1995 period.
Management fees and allocated overhead from the General Partner decreased
$6,929, or approximately 2 percent, to $332,515 for the nine months ended
September 30, 1996 compared to $339,444 for the comparable 1995 period. The
decreases for the three and nine month periods were due to decreases in
allocated overhead from the General Partner.
Depreciation and amortization expense decreased $31,639, or approximately
23 percent, to $107,926 for the three months ended September 30, 1996 compared
to $139,565 for the comparable 1995 period. Depreciation and amortization
expense decreased $94,710, or approximately 23 percent, to $323,984 for the nine
months ended September 30, 1996 compared to $418,694 for the comparable 1995
period. The decreases for the three and nine month periods were due to the
maturation of the intangible asset base.
Operating income increased $55,108, or approximately 48 percent, to
$169,230 for the three months ended September 30, 1996 compared to $114,122 for
the comparable 1995 period. Operating income increased $260,624 to $451,142 for
the nine months ended September 30, 1996 compared to $190,518 for the comparable
1995 period. The increases for the three and nine month periods were due to the
increases in revenues and the decreases in operating expenses, depreciation and
amortization expense and management fees and allocated overhead from the General
Partner.
The cable television industry generally measures the financial performance
of a cable television system in terms of cash flow or operating income before
depreciation and amortization. The value of a cable television system is often
determined using multiples of cash flow. This measure is not intended to be a
substitute or improvement upon the items disclosed on the financial statements,
rather it is included because it is an industry standard. Operating income
before
10
depreciation and amortization increased $23,469, or approximately 9 percent, to
$277,156 for the three months ended September 30, 1996 compared to $253,687 for
the comparable 1995 period. Operating income before depreciation and
amortization increased $165,914, or approximately 27 percent, to $775,126 for
the nine months ended September 30, 1996 compared to $609,212 for the comparable
1995 period. The increases for the three and nine month periods were due to the
increases in revenues and the decreases in operating expenses and management
fees and allocated overhead from the General Partner.
Interest income increased $7,743, or approximately 15 percent, to $59,756
for the three months ended September 30, 1996 compared to $52,013 for the
comparable 1995 period. Interest income increased $49,380, or approximately 39
percent, to $175,214 for the nine month period ended September 30, 1996 compared
to $125,834 for the comparable 1995 period. The increases were due to higher
cash balances and higher interest rates on interest-bearing accounts in 1996.
Interest expense increased $135, or approximately 26 percent, to $646 for
the three months ended September 30, 1996 compared to $511 for the comparable
1995 period. Interest expense decreased $1,296, or approximately 14 percent, to
$7,916 for the nine months ended September 30, 1996 compared to $9,212 for the
comparable 1995 period. The decrease for the nine month period was due to lower
outstanding balances on interest bearing obligations.
Other expense totaled $177,859 for the nine month period ended September
30, 1996 compared to other income of $1,024 in 1995. This change was due
primarily to additional expenses incurred in 1996 from a sales and use tax
audit.
Net income of the Venture increased $60,462, or approximately 36 percent,
to $226,295 for the three months ended September 30, 1996 compared to $165,833
for the comparable 1995 period. Net income of the Venture increased $132,417,
or approximately 43 percent, to $440,581 for the nine months ended September 30,
1996 compared to $308,164 for the comparable 1995 period. The increases were
due primarily to the increases in operating income and the increases in interest
income.
11
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
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.
CABLE TV FUND 11-B, LTD.
BY: JONES INTERCABLE, INC.
General Partner
By: /S/ Kevin P. Coyle
--------------------------------------
Kevin P. Coyle
Group Vice President/Finance
(Principal Financial Officer)
Dated: November 11, 1996
13