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 June 30, 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: 0-17734
IDS/JONES GROWTH PARTNERS 89-B, LTD.
- --------------------------------------------------------------------------------
Exact name of registrant as specified in its charter
Colorado #84-1060546
- --------------------------------------------------------------------------------
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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IDS/JONES GROWTH PARTNERS 89-B, LTD.
------------------------------------
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
------------------------
June 30, December 31,
1998 1997
------------- ------------
ASSETS $ - $ -
------ ============ ============
LIABILITIES AND PARTNERS' DEFICIT
---------------------------------
LIABILITIES:
Loss in excess of investment in cable television
joint venture $ 5,465,866 $ 4,889,642
Accounts payable - affiliate 102,393 102,393
------------ ------------
Total liabilities 5,568,259 4,992,035
------------ ------------
PARTNERS' DEFICIT:
General Partners-
Contributed capital 500 500
Accumulated deficit (194,915) (189,153)
------------ ------------
(194,415) (188,653)
------------ ------------
Limited Partners-
Net contributed capital (63,383 units outstanding at
June 30, 1998 and December 31, 1997) 12,623,901 12,623,901
Accumulated deficit (17,997,745) (17,427,283)
------------ ------------
(5,373,844) (4,803,382)
------------ ------------
Total liabilities and partners' deficit $ - $ -
============ ============
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
2
IDS/JONES GROWTH PARTNERS 89-B, LTD.
------------------------------------
(A Limited Partnership)
UNAUDITED STATEMENTS OF OPERATIONS
----------------------------------
For the Three Months Ended For the Six Months Ended
June 30, June 30,
-------------------------- -----------------------
1998 1997 1998 1997
---------- ---------- --------- ---------
EQUITY IN NET LOSS OF
CABLE TELEVISION
JOINT VENTURE $(304,773) $(383,669) $(576,224) $(850,606)
--------- --------- --------- ---------
NET LOSS $(304,773) $(383,669) $(576,224) $(850,606)
========= ========= ========= =========
ALLOCATION OF NET LOSS:
General Partners $ (3,047) $ (3,837) $ (5,762) $ (8,506)
========= ========= ========= =========
Limited Partners $(301,726) $(379,832) $(570,462) $(842,100)
========= ========= ========= =========
NET LOSS PER LIMITED
PARTNERSHIP UNIT $(4.76) $(6.00) $(9.00) $ (13.29)
========= ========= ========= =========
WEIGHTED AVERAGE NUMBER
0F LIMITED PARTNERSHIP
UNITS OUTSTANDING 63,383 63,383 63,383 63,383
========= ========= ========= =========
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
3
IDS/JONES GROWTH PARTNERS 89-B, LTD.
------------------------------------
(A Limited Partnership)
UNAUDITED STATEMENTS OF CASH FLOWS
----------------------------------
For the Six Months Ended
June 30,
------------------------
1998 1997
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(576,224) $(850,606)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Equity in net loss of Cable Television
Joint Venture 576,224 850,606
--------- ---------
Net cash provided by operating activities - -
--------- ---------
Net change in cash - -
Cash, beginning of period - -
--------- ---------
Cash, end of period $ - $ -
========= =========
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ - $ -
========= =========
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
4
IDS/JONES GROWTH PARTNERS 89-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 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 IDS/Jones Growth Partners
89-B, Ltd. (the "Partnership") at June 30, 1998 and December 31, 1997, its
Statements of Operations for the three and six month periods ended June 30, 1998
and 1997 and its Statements of Cash Flows for the six month periods ended June
30, 1998 and 1997. Results of operations for these periods are not necessarily
indicative of results to be expected for the full year.
The Partnership owns a 24.4 percent interest in IDS/Jones Joint Venture
Partners (the "Venture") through a capital contribution of $14,008,000 made in
1990. The Venture acquired the cable television system serving the communities
of Aurora, North Aurora, Montgomery, Plano, Oswego, Sandwich, Yorkville and
certain unincorporated areas of Kendall and Kane Counties, all in the State of
Illinois (the "Aurora System") on May 31, 1990.
The Partnership's investment in the Venture is accounted for using the
equity method. At June 30, 1998, the Partnership had recorded equity losses in
excess of its investment in the Venture, resulting in a liability of $5,465,866.
The Partnership will continue to record equity losses because the Venture is a
general partnership. It is anticipated that the Venture will continue to
generate cash from operations; however, the net losses will result from
depreciation and amortization of the Venture's asset base. The Partnership
anticipates recovering the losses in excess of its investment in the Venture
upon the proposed sale of the Venture's Aurora System.
(2) In July 1998, the Venture entered into an asset purchase agreement to sell
the Aurora System to an unaffiliated party for a sales price of $108,500,000,
subject to customary closing adjustments. Closing of the sale, which is expected
to occur in the fourth quarter of 1998, will be subject to several conditions,
including necessary governmental and other third party consents. In addition,
because the Aurora System constitutes all of the assets of the Partnership and
IDS/Jones Growth Partners II, L.P. ("Growth Partners II"), the sale must be
approved by the owners of a majority of the interests of both the Partnership
and Growth Partners II. Jones Cable Corporation (the "Managing General Partner")
expects to conduct a vote of the limited partners of the Partnership and Growth
Partners II on the sale of the Aurora System in the third quarter of 1998. IDS
Cable Corporation (the "Supervising General Partner") has consented to the
transaction. Upon the closing of the proposed sale of the Aurora System, based
upon financial information as of June 30, 1998, the Venture will repay all of
its indebtedness, including $47,000,000 borrowed under its credit facility,
capital lease obligations totaling $72,753, related parties' notes totaling
$1,600,000 and the subordinated advance of $1,406,647 to Jones Intercable, Inc.
("JIC"), settle working capital adjustments, and then deposit $3,283,500 into an
indemnity escrow account. The remaining net sale proceeds of approximately
$52,000,000 will be distributed to the Venture's four partners: the Partnership,
Growth Partners II, IDS Management Corporation and JIC, in proportion to their
ownership interests. The Partnership will receive $12,700,000, or 24.4 percent
of the $52,000,000 distribution. The Partnership's portion of the net sales
proceeds will be used to repay the outstanding balance of $102,393 due the
Managing General Partner, and the remaining $12,598,000 will be distributed to
the Partnership's partners of record as of the closing date of the sale of the
Aurora System. Based upon financial information as of June 30, 1998, this
distribution will give the Partnership's limited partners an approximate return
of $199 for each $250 limited partnership interest, or $795 for each $1,000
invested in the Partnership.
The $3,283,500 of the sale proceeds to be placed in the indemnity escrow
account will remain in escrow until November 15, 1999 as security for the
Partnership's agreement to indemnify the buyer under the asset purchase
agreement. The Partnership's primary exposure, if any, will relate to the
representations and warranties to be made about the Aurora System in the asset
purchase agreement. Any amounts remaining from this indemnity escrow account
and not claimed by the buyer at the end of the escrow period will be returned to
and distributed to the Partnership, Growth Partners II, IDS Management
Corporation and JIC at that time. If the entire $3,283,500 escrow amount is
distributed, the Partnership would receive approximately $801,174, or 24.4
percent. The Partnership would then distribute the $801,174 to the limited
partners, which would represent $12.50 for each $250 limited partnership
interest or $50 for each $1,000 invested in the Partnership. The Partnership
will continue in existence at least until any amounts remaining from the
5
indemnity escrow account have been distributed. Since the Aurora System
represents the only asset of the Partnership and the Venture, the Partnership
and the Venture will be liquidated and dissolved upon the final distribution of
any amounts remaining from the indemnity escrow account. If any disputes with
respect to the indemnification arise, the Partnership and the Venture would not
be dissolved until such disputes were resolved, which could result in the
Partnership and the Venture continuing in existence beyond 1999.
(3) The Managing 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 during the three and six month periods ended
June 30, 1998 (reflecting the Partnership's 24.4 percent interest in the
Venture) were $66,906 and $129,589, respectively, as compared to $60,135 and
$117,627, respectively, for the similar 1997 periods.
The Supervising General Partner participates in certain management
decisions of the Partnership and receives a fee for its services equal to 1/2
percent of the Partnership's portion of the gross revenues of the Venture,
excluding revenues from the sale of cable television systems or franchises.
Supervision fees paid during the three and six month periods ended June 30, 1998
(reflecting the Partnership's 24.4 percent interest in the Venture) were $6,690
and $12,959, respectively, as compared to $6,014 and $11,763, respectively, for
the similar 1997 periods.
The Venture reimburses JIC, the parent of the Managing 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 on actual time spent by employees of JIC with respect to each partnership
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
JIC and certain of its affiliates. Systems owned by JIC and all other systems
owned by partnerships for which JIC or affiliates are the general partners are
also allocated a proportionate share of these expenses. The Managing General
Partner believes that the methodology used in allocating overhead and
administrative expenses is reasonable. Reimbursements made to JIC by the
Venture for allocated overhead and administrative expenses during the three and
six months ended June 30, 1998 (reflecting the Partnership's 24.4 percent
interest in the Venture) were $80,409 and $152,352, respectively, as compared to
$60,517 and $136,578, respectively, for the similar 1997 periods.
The Supervising General Partner may also be reimbursed for certain expenses
incurred on behalf of the Venture. There were no reimbursements made to the
Supervising General Partner during the three and six month periods ended June
30, 1998 and 1997.
6
(4) Financial information regarding the Venture is presented below.
UNAUDITED BALANCE SHEETS
------------------------
June 30, 1998 December 31, 1997
------------- -----------------
ASSETS
------
Cash and trade receivables $ 664,244 $ 690,468
Investment in cable television properties 39,265,471 41,007,753
Other assets 342,755 463,878
------------ ------------
Total assets $ 40,272,470 $ 42,162,099
============ ============
LIABILITIES AND PARTNERS' DEFICIT
---------------------------------
Debt $ 50,079,400 $ 50,093,792
Accounts payable and accrued liabilities 4,232,386 3,746,047
Partners' contributed capital 57,344,709 57,344,709
Accumulated deficit (71,384,025) (69,022,449)
------------ ------------
Total liabilities and partners' deficit $ 40,272,470 $ 42,162,099
============ ============
7
UNAUDITED STATEMENTS OF OPERATIONS
----------------------------------
For the Three Months Ended For the Six Months Ended
June 30, June 30,
---------------------------- --------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
Revenues $ 5,484,098 $ 4,929,109 $10,622,039 $ 9,641,555
Operating expenses 2,977,427 2,694,604 5,757,426 5,400,456
Management fees and allocated overhead
from General Partners 631,168 519,121 1,208,607 1,090,031
Depreciation and amortization 2,160,854 2,349,158 4,105,942 4,798,663
----------- ----------- ----------- -----------
Operating loss (285,351) (633,774) (449,936) (1,647,595)
----------- ----------- ----------- -----------
Interest expense (949,601) (917,103) (1,894,764) (1,825,055)
Other, net (14,120) (21,537) (16,876) (13,441)
----------- ----------- ----------- -----------
Net loss $(1,249,072) $(1,572,414) $(2,361,576) $(3,486,091)
=========== =========== =========== ===========
Management fees paid to the Managing General Partner by the Venture totaled
$274,205 and $531,102, respectively, for the three and six months ended June 30,
1998 compared to $246,456 and $482,078, respectively, for the comparable 1997
periods. Supervision fees paid to the Supervising General Partner totaled
$27,420 and $53,110, respectively, for the three and six months ended June 30,
1998 compared to $24,646 and $48,208, respectively, for the comparable 1997
periods. Reimbursements for overhead and administrative expenses paid to JIC
totaled $329,543 and $624,395, respectively, for the three and six months ended
June 30, 1998 compared to $248,019 and $559,745, respectively, for the
comparable 1997 periods.
8
IDS/JONES GROWTH PARTNERS 89-B, LTD.
------------------------------------
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
FINANCIAL CONDITION
- -------------------
The Partnership owns a 24.4 percent interest in the Venture. The Venture
owns the Aurora System. The Partnership's investment in the Venture is accounted
for under the equity method. The Partnership's share of losses generated by the
Venture have exceeded the Partnership's initial investment in the Venture;
therefore, the investment is classified as a liability. This liability increased
by $576,224, which represents the Partnership's share of losses generated by the
Venture during the six months ended June 30, 1998.
On December 5, 1991, JIC made an equity investment in the Venture in the
amount of $2,872,000. Also on December 5, 1991, IDS Management Corporation made
an equity investment in the Venture of $2,872,000. As a result of their equity
contributions to the Venture, IDS Management Corporation and JIC each have a 5
percent equity interest in the Venture, the Partnership has a 24.4 percent
interest and IDS/Jones Growth Partners II, L.P. has a 65.6 percent interest.
In July 1998, the Venture entered into an asset purchase agreement to sell
the Aurora System to an unaffiliated party for a sales price of $108,500,000,
subject to customary closing adjustments. Closing of the sale, which is
expected to occur in the fourth quarter of 1998, will be subject to several
conditions, including necessary governmental and other third party consents. In
addition, because the Aurora System constitutes all of the assets of the
Partnership and IDS/Jones Growth Partners II, the sale must be approved by the
owners of a majority of the interests of both the Partnership and Growth
Partners II. The Managing General Partner expects to conduct a vote of the
limited partners of the Partnership and Growth Partners II on the sale of the
Aurora System in the third quarter of 1998. The Supervising General Partner has
consented to the transaction. Upon the closing of the proposed sale of the
Aurora System, based upon financial information as of June 30, 1998, the Venture
will repay all of its indebtedness, including $47,000,000 borrowed under its
credit facility, capital lease obligations totaling $72,753, related parties'
notes totaling $1,600,000 and the subordinated advance of $1,406,647 to JIC,
settle working capital adjustments, and then deposit $3,283,500 into an
indemnity escrow account. The remaining net sale proceeds of approximately
$52,000,000 will be distributed to the Venture's four partners: the
Partnership, Growth Partners II, IDS Management Corporation and JIC, in
proportion to their ownership interests. The Partnership will receive
$12,700,000, or 24.4 percent of the $52,000,000 distribution. The Partnership's
portion of the net sales proceeds will be used to repay the outstanding balance
of $102,393 due the Managing General Partner, and the remaining $12,598,000 will
be distributed to the Partnership's partners of record as of the closing date of
the sale of the Aurora System. Based upon financial information as of June 30,
1998, this distribution will give the Partnership's limited partners an
approximate return of $199 for each $250 limited partnership interest, or $795
for each $1,000 invested in the Partnership.
The $3,283,500 of the sale proceeds to be placed in the indemnity escrow
account will remain in escrow until November 15, 1999 as security for the
Partnership's agreement to indemnify the buyer under the asset purchase
agreement. The Partnership's primary exposure, if any, will relate to the
representations and warranties to be made about the Aurora System in the asset
purchase agreement. Any amounts remaining from this indemnity escrow account
and not claimed by the buyer at the end of the escrow period will be returned to
and distributed to the Partnership, Growth Partners II, IDS Management
Corporation and JIC at that time. If the entire $3,283,500 escrow amount is
distributed, the Partnership would receive approximately $801,174, or 24.4
percent. The Partnership would then distribute the $801,174 to the limited
partners, which would represent $12.50 for each $250 limited partnership
interest or $50 for each $1,000 invested in the Partnership. The Partnership
will continue in existence at least until any amounts remaining from the
indemnity escrow account have been distributed. Since the Aurora System
represents the only asset of the Partnership and the Venture, the Partnership
and the Venture will be liquidated and dissolved upon the final distribution of
any amounts remaining from the indemnity escrow account. If any disputes with
respect to the indemnification arise, the Partnership and the Venture would not
be dissolved until such disputes were resolved, which could result in the
Partnership and the Venture continuing in existence beyond 1999.
For the six months ended June 30, 1998, the Venture generated net cash from
operating activities totaling $2,177,504, which is available to fund capital
expenditures and non-operating costs. During the first six months of 1998,
9
the Venture expended approximately $2,190,000 on capital expenditures.
Approximately 46 percent of the expenditures related to construction of service
drops to subscriber homes. Approximately 33 percent of the expenditures related
to plant extensions to new homes passed. The remainder was for other capital
expenditures to maintain the value of the Aurora System. Funding for these
expenditures was provided by cash generated from operations and cash on hand.
Anticipated capital expenditures for the remainder of 1998 are approximately
$2,120,000. Approximately 52 percent of the anticipated capital expenditures is
for plant extensions to new homes passed. Approximately 27 percent of the
anticipated expenditures is for construction of service drops to subscriber
homes. These capital expenditures are necessary to maintain the value of the
Aurora System until it is sold. Funding for the expenditures is expected to be
provided by cash generated from operations and, if necessary and in its
discretion, borrowings from JIC. The Venture is obligated to conduct its
business in the ordinary course until the Aurora System is sold.
On December 5, 1991, JIC made a $1,800,000 loan to the Venture, of which
$1,200,000 had been repaid as of June 30, 1998. In the first quarter of 1994,
JIC agreed to subordinate to all other Venture debt its $1,406,647 advance to
the Venture outstanding at March 31, 1994 and IDS Management Corporation made a
loan of $1,000,000 to the Venture to fund principal repayments due on March 31,
1994 on the Venture's then-outstanding term loan. The interest rates on the
respective loans, which will vary from time to time, with respect to IDS
Management Corporation's loan, are at its cost of borrowing, and, with respect
to JIC's loans, are at its weighted average cost of borrowing. All of these
amounts owed to these related parties will be paid by the Venture with proceeds
to be received on the proposed sale of the Aurora System.
The Venture is a party to a $47,000,000 revolving credit and term loan
agreement with commercial banks. The agreement allows for a reducing revolving
commitment that will begin to reduce quarterly on June 30, 1999 until December
31, 1999, at which time the commitment will reduce to zero and all principal and
interest amounts will be due and payable in full. At June 30, 1998, all
$47,000,000 was outstanding under this agreement. The entire outstanding
balance of the revolving credit and term loan agreement will be repaid by the
Venture with proceeds from the proposed sale of the Aurora System. Interest on
the credit facility is at the Venture's option of the Prime Rate plus .5
percent, the London Interbank Offered Rate plus 1.5 percent or the Certificate
of Deposit Rate plus 1.625 percent. The effective interest rates on outstanding
obligations to non-affiliates as of June 30, 1998 and 1997 were 7.31 percent and
7.22 percent, respectively.
The Venture will rely on cash generated from operations and, if necessary
and in its discretion, advances from JIC to meet its liquidity needs until the
Aurora System is sold.
The Year 2000 issue is the result of many computer programs being written
such that they will malfunction when reading a year of "00." This problem could
cause system failure or miscalculations causing disruptions of business
processes.
JIC has initiated an assessment of its computer applications to determine
the extent of the problem. Based on this assessment, JIC has determined that
the majority of its computer applications supporting business processes,
including accounting and billing, are designed to handle the Year 2000
appropriately.
JIC is currently focusing its efforts on the impact of the Year 2000 issue
on service delivery. JIC has established an internal team to address this
issue. JIC is identifying and testing all date-sensitive equipment involved in
delivering service to the Venture's customers. In addition, JIC will assess the
Venture's options regarding repair or replacement of affected equipment during
this testing. JIC believes that the financial impact will not be material.
RESULTS OF OPERATIONS
- ---------------------
Revenues of the Venture's Aurora System increased $554,989, or
approximately 11 percent, to $5,484,098 for the three month period ended June
30, 1998 compared to $4,929,109 for the comparable 1997 period. Revenues
increased $980,484, or approximately 10 percent, to $10,622,039 for the six
months ended June 30, 1998 compared to $9,641,555 for the comparable 1997
period. Increases in the number of basic service subscribers accounted for
approximately 40 percent and 45 percent, respectively, of the increases in
revenues for the three and six month periods ended June 30, 1998. The number of
basic service subscribers increased 3,227, or approximately 7 percent, to 51,353
at June 30, 1998 compared to 48,126 at June 30, 1997. Basic service rate
increases accounted for approximately 42 percent and 37 percent, respectively,
of the increases in revenues for the three and six month periods. No other
individual factor was significant to the increases in revenues.
10
Operating expenses consist primarily of costs associated with the operation
and administration of the Aurora 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 marketing expenses.
Operating expenses increased $282,823, or approximately 11 percent, to
$2,977,427 for the three month period ended June 30, 1998 compared to $2,694,604
for the comparable 1997 period. Operating expenses increased $356,970, or
approximately 7 percent, to $5,757,426 for the six months ended June 30, 1998
compared to $5,400,456 for the comparable 1997 period. Increases in programming
fees primarily accounted for the increases in operating expenses for the three
and six month periods. No other individual factor contributed significantly to
the increases in operating expenses. Operating expenses represented 54 percent
and 55 percent, respectively, of revenues for the three month periods ended June
30, 1998 and 1997, and 54 percent and 56 percent, respectively, for the six
month periods ended June 30, 1998 and 1997.
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 increased
$272,166, or approximately 12 percent, to $2,506,671 for the three month period
ended June 30, 1998 compared to $2,234,505 for the comparable 1997 period.
Operating cash flow increased $623,514, or approximately 15 percent, to
$4,864,613 for the six months ended June 30, 1998 compared to $4,241,099 for the
comparable 1997 period. These increases were due to the increases in revenues
exceeding the increases in operating expenses.
Management and supervision fees and allocated overhead from the General
Partners increased $112,047, or approximately 22 percent, to $631,168 for the
three month period ended June 30, 1998 compared to $519,121 for the comparable
1997 period. Management and supervision fees and allocated overhead from the
General Partners increased $118,576, or approximately 11 percent, to $1,208,607
for the six months ended June 30, 1998 compared to $1,090,031 for the comparable
1997 period. These increases were primarily due to the timing of certain
expenses allocated from JIC and to the increases in revenues upon which such
management and supervision fees are based.
Depreciation and amortization expense decreased $188,304, or approximately
8 percent, to $2,160,854 for the three month period ended June 30, 1998 compared
to $2,349,158 for the comparable 1997 period. Depreciation and amortization
expense decreased $692,721, or approximately 14 percent, to $4,105,942 for the
six months ended June 30, 1998 compared to $4,798,663 for the comparable 1997
period. These decreases were due to the maturation of a portion of the
intangible asset base.
Operating loss decreased $348,423, or approximately 55 percent, to $285,351
for the three month period ended June 30, 1998 compared to $633,774 for the
similar 1997 period. Operating loss decreased $1,197,659, or approximately 73
percent, to $449,936 for the six months ended June 30, 1998 compared to
$1,647,595 in 1997. The decreases for the three and six month periods were due
to the increases in operating cash flow and the decreases in depreciation and
amortization expense exceeding the increases in management and supervision fees
and allocated overhead from the General Partners.
Interest expense increased $32,498, or approximately 4 percent, to $949,601
for the three month period ended June 30, 1998 compared to $917,103 for the
comparable 1997 period. Interest expense increased $69,709, or approximately 4
percent, to $1,894,764 for the six months ended June 30, 1998 compared to
$1,825,055 for the comparable 1997 period. These increases were due to higher
outstanding balances and higher effective interest rates on interest bearing
obligations.
The Venture's loss decreased $323,342, or approximately 21 percent, to
$1,249,072 for the three month period ended June 30, 1998 compared to $1,572,414
for the comparable 1997 period. The Venture's loss decreased $1,124,515, or
approximately 32 percent, to $2,361,576 for the six months ended June 30, 1998
compared to $3,486,091 for the comparable 1997 period. These decreases were due
to 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
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.
IDS/JONES GROWTH PARTNERS 89-B, LTD.
BY: JONES CABLE CORPORATION,
its Managing General Partner
By: /s/ Kevin P. Coyle
---------------------------------------
Kevin P. Coyle
Group Vice President/Finance
(Principal Financial Officer)
Dated: August 12, 1998
13