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 March 31, 1998
--------------
[_] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from __________ to __________
Commission File Number: 0-15714
JONES CABLE INCOME FUND 1-C, LTD.
- --------------------------------------------------------------------------------
Exact name of registrant as specified in charter
Colorado 84-1010419
- --------------------------------------------------------------------------------
State of organization I.R.S. employer I.D. #
9697 East Mineral Avenue, P.O. Box 3309, Englewood, Colorado 80155-3309
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Address of principal executive office
(303) 792-3111
-----------------------------
Registrant's telephone number
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 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
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JONES CABLE INCOME FUND 1-C, LTD.
---------------------------------
(A Limited Partnership)
UNAUDITED CONSOLIDATED BALANCE SHEETS
-------------------------------------
March 31, December 31,
ASSETS 1998 1997
------ ------------ ------------
CASH $ 685,060 $ 454,501
TRADE RECEIVABLES, less allowance for doubtful
receivables of $30,220 and $42,753 at March 31, 1998
and December 31, 1997, respectively 365,084 362,472
INVESTMENT IN CABLE TELEVISION PROPERTIES:
Property, plant and equipment, at cost 31,204,985 45,101,407
Less- accumulated depreciation (17,149,496) (24,222,527)
------------ ------------
14,055,489 20,878,880
Franchise costs and other intangible assets, net of accumulated
amortization of $21,324,995 and $33,614,162 at
March 31, 1998 and December 31, 1997, respectively 6,241,424 8,342,217
------------ ------------
Total investment in cable television properties 20,296,913 29,221,097
DEPOSITS, PREPAID EXPENSES AND DEFERRED CHARGES 796,207 476,648
------------ ------------
Total assets $ 22,143,264 $ 30,514,718
============ ============
The accompanying notes to unaudited consolidated financial statements
are an integral part of these unaudited consolidated balance sheets.
2
JONES CABLE INCOME FUND 1-C, LTD.
---------------------------------
(A Limited Partnership)
UNAUDITED CONSOLIDATED BALANCE SHEETS
-------------------------------------
March 31, December 31,
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) 1998 1997
------------------------------------------- ------------ ------------
LIABILITIES:
Debt $ 14,996,352 $ 23,624,588
Trade accounts payable and accrued liabilities 550,816 1,443,578
Subscriber prepayments 169,338 204,337
------------ ------------
Total liabilities 15,716,506 25,272,503
------------ ------------
MINORITY INTEREST IN JOINT VENTURE 2,597,504 2,126,411
------------ ------------
PARTNERS' CAPITAL (DEFICIT):
General Partner-
Contributed capital 1,000 1,000
Accumulated earnings 109,710 105,995
Distributions (113,443) (113,443)
------------ ------------
(2,733) (6,448)
------------ ------------
Limited Partners-
Net contributed capital (85,059 units outstanding at
March 31, 1998 and December 31, 1997) 34,909,262 34,909,262
Accumulated deficit (3,049,689) (10,384,724)
Distributions (28,027,586) (21,402,286)
------------ ------------
3,831,987 3,122,252
------------ ------------
Total liabilities and partners' capital (deficit) $ 22,143,264 $ 30,514,718
============ ============
The accompanying notes to unaudited consolidated financial statements
are an integral part of these unaudited consolidated balance sheets.
3
JONES CABLE INCOME FUND 1-C, LTD.
---------------------------------
(A Limited Partnership)
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
-----------------------------------------------
For the Three Months Ended
March 31,
--------------------------
1998 1997
----------- -----------
REVENUES $ 3,109,910 $ 4,845,698
COSTS AND EXPENSES:
Operating expenses 1,932,314 2,968,963
Management fees and allocated overhead from
General Partner 344,840 578,239
Depreciation and amortization 1,092,550 1,502,144
----------- -----------
OPERATING LOSS (259,794) (203,648)
----------- -----------
OTHER INCOME (EXPENSE):
Interest expense (144,279) (381,443)
Gain on sale of cable television system 12,638,349 18,889,257
Other, net (49,733) (12,461)
----------- -----------
Total other income (expense) 12,444,337 18,495,353
----------- -----------
CONSOLIDATED INCOME 12,184,543 18,291,705
MINORITY INTEREST IN CONSOLIDATED
INCOME (4,845,793) (7,274,611)
----------- -----------
NET INCOME $ 7,338,750 $11,017,094
=========== ===========
ALLOCATION OF NET INCOME:
General Partner $ 3,715 $ 334,290
=========== ===========
Limited Partners $ 7,335,035 $10,682,804
=========== ===========
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 86.23 $ 125.59
=========== ===========
WEIGHTED AVERAGE NUMBER OF LIMITED
PARTNERSHIP UNITS OUTSTANDING 85,059 85,059
=========== ===========
The accompanying notes to unaudited consolidated financial statements
are an integral part of these unaudited consolidated statements.
4
JONES CABLE INCOME FUND 1-C, LTD.
---------------------------------
(A Limited Partnership)
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
-----------------------------------------------
For the Three Months Ended
March 31,
---------------------------
1998 1997
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 7,338,750 $ 11,017,094
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation and amortization 1,092,550 1,502,144
Gain on sale of cable television system (12,638,349) (18,889,257)
Minority interest in consolidated income 4,845,793 7,274,611
Decrease (increase) in trade receivables (2,612) 162,476
Decrease (increase) in deposits, prepaid expenses
and deferred charges (354,646) 200,875
Decrease in trade accounts payable and accrued
liabilities and subscriber prepayments (927,761) (753,917)
Decrease in General Partner advances - (284,390)
------------ ------------
Net cash provided by (used in) operating activities (646,275) 229,636
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment, net (359,930) (1,748,880)
Proceeds from sale of cable television system, net
of brokerage fee 20,865,000 34,125,000
------------ ------------
Net cash provided by investing activities 20,505,070 32,376,120
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings 1,018,892 17,003,052
Repayment of debt (9,647,128) (35,038,565)
Distribution to Venture Partner (4,374,700) (5,965,360)
Distributions to Limited Partners (6,625,300) (9,034,640)
------------ ------------
Net cash used in financing activities (19,628,236) (33,035,513)
------------ ------------
Increase (decrease) in cash 230,559 (429,757)
Cash, beginning of period 454,501 702,640
------------ ------------
Cash, end of period $ 685,060 $ 272,883
============ ============
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ 274,901 $ 620,125
============ ============
The accompanying notes to unaudited consolidated financial statements
are an integral part of these unaudited consolidated statements.
5
JONES CABLE INCOME FUND 1-C, LTD.
---------------------------------
(A Limited Partnership)
NOTES TO UNAUDITED CONSOLIDATED 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 complete 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 Jones Cable Income Fund 1-
C, Ltd. (the "Partnership") at March 31, 1998 and December 31, 1997 and its
results of operations and cash flows for the three month periods ended March 31,
1998 and 1997. Results of operations for these periods are not necessarily
indicative of results to be expected for the full year.
The accompanying financial statements include 100 percent of the accounts
of the Partnership and those of the Myrtle Creek, Oregon; South Sioux City,
Nebraska; and Three Rivers, Schoolcraft, Vicksburg, Constantine, White Pigeon,
Dowagiac, Watervliet and Vandalia, Michigan (the "Southwestern Michigan System")
cable television systems reduced by the 40 percent minority interest in Jones
Cable Income Fund 1-B/C Venture (the "Venture"). All interpartnership accounts
and transactions have been eliminated. The Venture sold the cable television
system serving Clearlake and Lakeport, California (the "Clearlake System") on
January 9, 1998. Jones Intercable, Inc. (the "General Partner"), a publicly
held Colorado corporation, manages the Partnership.
(2) On January 9, 1998, the Venture sold the Clearlake System to an
unaffiliated party for a sales price of $21,400,000, subject to customary
closing adjustments. The Venture distributed a total of $11,000,000 to the
Partnership and Jones Cable Income Fund 1-B, Ltd. ("Fund 1-B") in February 1998,
which amount represented the net sale proceeds following the Venture's repayment
of $9,600,000 outstanding under the Venture's credit facility and the payment of
a 2.5 percent brokerage fee to The Jones Group, Ltd., a subsidiary of the
General Partner ("The Jones Group"), totaling approximately $535,000. The
Partnership received $6,625,300 and Fund 1-B received $4,374,700 of such
distribution. The Partnership, in turn, distributed the $6,625,300
(approximately $156 per each $1,000 invested in the Partnership) to the limited
partners of the Partnership. Because the distribution to the limited partners of
the Partnership together with all prior distributions have not returned the
amount initially contributed by the limited partners to the Partnership plus the
preferred return provided by the Partnership's limited partnership agreement,
the General Partner did not receive a general partner distribution from the sale
proceeds. Because the sale of the Clearlake System did not represent a sale of
all or substantially all of the Partnership's assets, no vote of the limited
partners of the Partnership was required to approve this sale.
6
The pro forma effect of the sale of the Clearlake System on the results of
the Venture's operations for the three months ended March 31, 1998 and the sale
of the Clearlake System and the sale of the cable television systems serving
Brighton, Broomfield and Boulder County, Colorado on the Venture's operations
for the three months ended March 31, 1997, assuming the transactions had
occurred at the beginning of each year, is presented in the following unaudited
tabulation:
For the Three Months Ended March 31, 1998
-----------------------------------------
Unaudited
Pro Forma Unaudited
As Reported Adjustments Pro Forma
----------- ------------ ----------
Revenues $ 3,109,910 $ (132,995) $2,976,915
=========== ============ ==========
Operating Loss $ (259,794) $ 215,056 $ (44,738)
=========== ============ ==========
Consolidated Income (Loss) $12,184,543 $(12,403,040) $ (218,497)
=========== ============ ==========
For the Three Months Ended March 31, 1997
-----------------------------------------
Unaudited
Pro Forma Unaudited
As Reported Adjustments Pro Forma
----------- ------------ ----------
Revenues $ 4,845,698 $ (1,959,626) $2,886,072
=========== ============ ==========
Operating Loss $ (203,648) $ 134,593 $ (69,055)
=========== ============ ==========
Consolidated Income (Loss) $18,291,705 $(18,868,388) $ (576,683)
=========== ============ ==========
On January 30, 1998, the Venture entered into three purchase and sale
agreements with unaffiliated parties providing for the sale of the Southwestern
Michigan System to three separate unaffiliated parties for a total sales price
of $31,250,000, subject to customary closing adjustments. The closing of this
transaction, which is expected to occur in the third quarter of 1998, is subject
to the consents of governmental authorities and third parties with whom the
Venture has contracted that are necessary for the transfer of the Southwestern
Michigan System, and termination or expiration of the statutory waiting period
applicable to the purchase and sale agreements and the transactions contemplated
thereby under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended. Because the sale of the Southwestern Michigan System does not
represent a sale of all or substantially all of the Partnership's assets, no
vote of the limited partners of the Partnership will be required to approve this
sale.
Upon consummation of the proposed sale of the Southwestern Michigan System,
the Venture will pay a brokerage fee to The Jones Group totaling approximately
$781,250 and repay $11,300,000 under the Venture's credit facility, and then the
Venture will distribute the net sales proceeds of approximately $19,000,000 to
the Partnership and Fund 1-B. The Partnership will receive approximately
$11,443,800 and Fund 1-B will receive approximately $7,556,200 of such
distribution. The Partnership, in turn, will distribute the $11,443,800
(approximately $135 for each $500 limited partnership interest, or approximately
$270 for each $1,000 invested in the Partnership) to the limited partners of the
Partnership. Because the distribution to the limited partners of the
Partnership together with all prior distributions will not return the amount
initially contributed by the limited partners to the Partnership plus the
preferred return provided by the Partnership's limited partnership agreement,
the General Partner of the Partnership will not receive a general partner
distribution from the sale proceeds.
Taking into account prior distributions to the limited partners from
operating cash flow and from the net proceeds of prior cable television system
sales, the limited partners of the Partnership will have received $464 for
7
each $500 limited partner interest, or $928 for each $1,000 invested in the
Partnership after the sale of the Southwestern Michigan System.
(3) 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 Venture,
excluding revenues from the sale of cable television systems or franchises.
Management fees paid to the General Partner by the Venture for the three month
periods ended March 31, 1998 and 1997 were $155,496 and $242,285, respectively.
The Venture reimburses 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
Venture. Such services, and their related costs, are necessary to the
operations of the Venture and would have been incurred by the Venture if it was
a stand alone entity. Allocations of personnel costs are based primarily on
actual time spent by employees of the General Partner with respect to each
entity managed. Remaining expenses are allocated based on the pro rata
relationship of the Venture'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 of allocating overhead and administrative expenses is reasonable.
Overhead and administrative expenses allocated to the Venture by the General
Partner for the three month periods ended March 31, 1998 and 1997 were $189,344
and $335,954, respectively.
8
JONES CABLE INCOME FUND 1-C, LTD.
---------------------------------
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
FINANCIAL CONDITION
- -------------------
It is the General Partner's publicly announced policy that it intends to
liquidate its managed partnerships, including the Partnership, as opportunities
for sales of partnership cable television systems arise in the marketplace over
the next several years. In accordance with the General Partner's policy, the
Venture sold the Clearlake System in January 1998 and has entered into a
contract to sell the Southwestern Michigan System. No specific dates or terms
have yet been set for the sale of the Venture's remaining systems. There can be
no assurance as to the timing or terms of any sale.
The Partnership owns a 60 percent interest in the Venture. The
accompanying financial statements include 100 percent of the accounts of the
Partnership and those of the Venture systems reduced by the 40 percent minority
interest in the Venture.
On January 9, 1998, the Venture sold the Clearlake System to an
unaffiliated party for a sales price of $21,400,000, subject to customary
closing adjustments. The Venture distributed a total of $11,000,000 to the
Partnership and Fund 1-B in February 1998, which amount represented the net sale
proceeds following the Venture's repayment of $9,600,000 outstanding under the
Venture's credit facility and the payment of a 2.5 percent brokerage fee to The
Jones Group totaling approximately $535,000. The Partnership received
$6,625,300 and Fund 1-B received $4,374,700 of such distribution. The
Partnership, in turn, distributed the $6,625,300 (approximately $156 per each
$1,000 invested in the Partnership) to the limited partners of the Partnership.
Because the distribution to the limited partners of the Partnership together
with all prior distributions have not returned the amount initially contributed
by the limited partners to the Partnership plus the preferred return provided by
the Partnership's limited partnership agreement, the General Partner did not
receive a general partner distribution from the sale proceeds. Because the sale
of the Clearlake System did not represent a sale of all or substantially all of
the Partnership's assets, no vote of the limited partners of the Partnership was
required to approve this sale.
On January 30, 1998, the Venture entered into three purchase and sale
agreements with unaffiliated parties providing for the sale of the Southwestern
Michigan System to three separate unaffiliated parties for a total sales price
of $31,250,000, subject to customary closing adjustments. The closing of this
transaction, which is expected to occur in the third quarter of 1998, is subject
to the consents of governmental authorities and third parties with whom the
Venture has contracted that are necessary for the transfer of the Southwestern
Michigan System, and termination or expiration of the statutory waiting period
applicable to the purchase and sale agreements and the transactions contemplated
thereby under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended. Because the sale of the Southwestern Michigan System does not
represent a sale of all or substantially all of the Partnership's assets, no
vote of the limited partners of the Partnership will be required to approve this
sale.
Upon consummation of the proposed sale of the Southwestern Michigan System,
the Venture will pay a brokerage fee to The Jones Group totaling approximately
$781,250 and repay $11,300,000 under the Venture's credit facility, and then the
Venture will distribute the net sales proceeds of approximately $19,000,000 to
the Partnership and Fund 1-B. The Partnership will receive approximately
$11,443,800 and Fund 1-B will receive approximately $7,556,200 of such
distribution. The Partnership, in turn, will distribute the $11,443,800
(approximately $135 for each $500 limited partnership interest, or approximately
$270 for each $1,000 invested in the Partnership) to the limited partners of the
Partnership. Because the distribution to the limited partners of the
Partnership together with all prior distributions will not return the amount
initially contributed by the limited partners to the Partnership plus the
preferred return provided by the Partnership's limited partnership agreement,
the General Partner of the Partnership will not receive a general partner
distribution from the sale proceeds.
9
Taking into account prior distributions to the limited partners from
operating cash flow and from the net proceeds of prior cable television system
sales, the limited partners of the Partnership will have received $464 for each
$500 limited partner interest, or $928 for each $1,000 invested in the
Partnership after the sale of the Southwestern Michigan System.
During the first three months of 1998, capital expenditures within the
Venture's systems totaled approximately $360,000. Approximately 56 percent of
these expenditures was for the construction of service drops to subscribers'
homes and approximately 15 percent of these expenditures was for the
construction of new cable plant related to new homes passed. The remainder was
for other capital expenditures used to maintain the value of the Venture's
remaining systems. Funding for these expenditures was provided by cash on hand
and borrowings available under the Venture's credit facility. Anticipated
capital expenditures for the remainder of 1998 are approximately $2,177,000.
Construction of service drops to homes will account for approximately 44 percent
of the anticipated expenditures and construction of new cable plant related to
new homes passed will account for approximately 33 percent of the anticipated
expenditures. The remainder is for other capital expenditures to be used to
maintain the value of the Venture's remaining systems. Depending upon the
timing of the closing of the sale of the Southwestern Michigan System, the
Venture will make only the portion of the budgeted capital expenditures
scheduled to be made during the Venture's continued ownership of the
Southwestern Michigan System. Funding for these expenditures is expected to
come from cash on hand, cash generated from operations and available borrowings
under the Venture's credit facility.
On January 9, 1998, as required by its credit facility, the Partnership
used a portion of the proceeds of the sale of the Clearlake System to repay
$9,600,000 of the balance outstanding. At the same time the commitment on the
credit facility was reduced to $19,900,000. At March 31, 1998, the Venture's
credit facility had $14,700,000 outstanding, leaving $5,200,000 available for
future borrowings. Upon the sale of the Southwestern Michigan System, the
Venture will repay $11,300,000 under the then-outstanding balance and the
commitment will be reduced. On September 30, 2000, the maximum amount available
begins to reduce quarterly until June 30, 2005 when the amount available will be
zero. Interest on outstanding principal is calculated at the Venture's option
of the Base Rate plus 1/8 percent, or the Euro-Rate plus 1-1/8 percent. The
effective interest rate on amounts outstanding as of March 31, 1998 and 1997 was
6.81 percent and 6.93 percent, respectively.
The Venture has sufficient sources of capital available from cash on hand,
cash generated from operations and from borrowings available under its new
credit facility to meet its anticipated needs.
RESULTS OF OPERATIONS
- ---------------------
Revenues of the Venture decreased $1,735,788, or approximately 36 percent,
to $3,109,910 for the three months ended March 31, 1998 from $4,845,698 for the
comparable 1997 period. This decrease was a result of the sale of the Colorado
Systems and the Clearlake System. Disregarding the effect of these sales,
revenues would have increased $90,843, or approximately 3 percent, to $2,976,915
in 1998 from $2,886,072 in 1997. This increase in revenues was primarily due to
basic service rate increases and an increase in the number of basic subscribers.
Basic service rate increases accounted for approximately 68 percent of the
increase in revenues. An increase in the number of basic subscribers accounted
for approximately 21 percent of the increase in revenues. The number of basic
subscribers in the remaining systems totaled 30,109 at March 31, 1998 compared
to 29,704 at March 31, 1997, an increase of 405, or approximately 1 percent. No
other single factor significantly affected the increase in revenues.
Operating expenses consist primarily of costs associated with the operation
and administration of the Venture's cable television systems. 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 marketing expenses.
10
Operating expenses decreased $1,036,649, or approximately 35 percent, to
$1,932,314 for the quarter ended March 31, 1998 from $2,968,963 for the
comparable 1997 period. This decrease was a result of the sale of the Colorado
Systems and the Clearlake System. Disregarding the effect of these sales,
operating expenses would have increased $46,011, or approximately 3 percent, to
$1,626,353 in 1998 from $1,580,342 in 1997. This increase in operating expenses
was due primarily to increases in programming fees. Operating expenses
represented 55 percent of revenues for both the first quarter of 1998 and 1997.
No other individual factor was significant to the increase in operating
expenses.
The cable television industry generally measures the financial performance
of a cable television system in terms of operating cash flow (revenues less
operating expenses). 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 cash flow decreased
$699,139, or approximately 37 percent, to $1,177,596 for the three months ended
March 31, 1998 from $1,876,735 for the comparable 1997 period. This decrease
was a result of the sale of the Colorado Systems and the Clearlake System.
Disregarding the effect of these sales, operating cash flow would have increased
$44,832, or approximately 3 percent, to $1,350,562 in 1998 from $1,305,730 in
1997. This increase was due to the increase in revenues exceeding the increase
in operating expenses.
Management fees and allocated overhead from the General Partner decreased
$233,399, or approximately 40 percent, to $344,840 for the quarter ended March
31, 1998 from $578,239 for the comparable 1997 period. This decrease was a
result of the sale of the Colorado Systems and the Clearlake System.
Disregarding the effect of these sales, management fees and allocated overhead
from the General Partner would have decreased $44,359, or approximately 12
percent, to $330,828 in 1998 from $375,187 in 1997. This decrease was primarily
due to a decrease in expenses allocated from the General Partner.
Depreciation and amortization expense decreased $409,594, or approximately
27 percent, to $1,092,550 for the three months ended March 31, 1998 from
$1,502,144 for the comparable 1997 period. This decrease was a result of the
sale of the Colorado Systems and the Clearlake System. Disregarding the effect
of these sales, depreciation and amortization expense would have increased
$64,874, or approximately 6 percent, to $1,064,472 in 1998 from $999,598 in
1997. This increase was due to an increase in the Venture's depreciable asset
base.
The Venture's operating loss increased $56,146, or approximately 28
percent, to $259,794 for the quarter ended March 31, 1998 from $203,648 for the
comparable 1997 period. Disregarding the effect of the sale of the Colorado
Systems and the Clearlake System, the Venture's operating loss would have
decreased $24,317, or approximately 35 percent, to $44,738 in 1998 compared to
$69,055 in 1997. This change was a result of the increase in operating cash
flow and decrease in management fees and allocated overhead from the General
Partner exceeding the increase in depreciation and amortization expense.
Interest expense decreased $237,164, or approximately 62 percent, to
$144,279 for the quarter ended March 31, 1998 from $381,443 for the comparable
1997 period. This decrease was primarily due to the lower outstanding balances
on the Venture's interest bearing obligations, as a result of a portion of the
proceeds from the sale of the Colorado Systems and the Clearlake System being
used to repay a portion of the outstanding balance of the Venture's credit
facility.
The Venture reported a gain on the sale of the Clearlake System of
$12,638,349 in the first quarter of 1998 and a gain of $18,889,257 on the sale
of the Colorado Systems in the first quarter of 1997.
The Venture reported net income of $12,184,543 for the three months ended
March 31, 1998 compared to $18,291,705 for the similar 1997 period. This change
was a result of the factors discussed above.
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
Report on Form 8-K dated January 9, 1998 reported that on
January 9, 1998, Jones Cable Income Fund 1-B/C Venture sold the
cable television system serving subscribers in the communities of
Clearlake and Lakeport, all in the State of California, to an
unaffiliated party for a sales price of $21,400,000, subject to
customary closing adjustments.
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.
JONES CABLE INCOME FUND 1-C, LTD.
BY: JONES INTERCABLE, INC.
General Partner
By: /S/ Kevin P. Coyle
------------------------------------
Kevin P. Coyle
Group Vice President/Finance
(Principal Financial Officer)
Dated: May 13, 1998
13