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, 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
------------------------------------------------------------------------
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 ______
______
IDS/JONES GROWTH PARTNERS 89-B, LTD.
------------------------------------
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
------------------------
September 30, December 31,
1998 1997
------------- ------------
ASSETS $ - $ -
------ ============ ============
LIABILITIES AND PARTNERS' DEFICIT
- ---------------------------------
LIABILITIES:
Loss in excess of investment in cable television
joint venture $ 5,796,992 $ 4,889,642
Accounts payable - affiliate 102,393 102,393
------------ ------------
Total liabilities 5,899,385 4,992,035
------------ ------------
PARTNERS' DEFICIT:
General Partners-
Contributed capital 500 500
Accumulated deficit (198,226) (189,153)
------------ ------------
(197,726) (188,653)
------------ ------------
Limited Partners-
Contributed capital (63,383 units outstanding at
September 30, 1998 and December 31, 1997) 12,623,901 12,623,901
Accumulated deficit (18,325,560) (17,427,283)
------------ ------------
(5,701,659) (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 Nine Months Ended
September 30, September 30,
---------------------------- ---------------------------
1998 1997 1998 1997
--------- --------- --------- -----------
EQUITY IN NET LOSS OF
CABLE TELEVISION
JOINT VENTURE $(331,126) $(315,645) $(907,350) $(1,166,251)
--------- --------- --------- -----------
NET LOSS $(331,126) $(315,645) $(907,350) $(1,166,251)
========= ========= ========= ===========
ALLOCATION OF NET LOSS:
General Partners $ (3,311) $ (3,157) $ (9,073) $ (11,663)
========= ========= ========= ===========
Limited Partners $(327,815) $(312,488) $(898,277) $(1,154,588)
========= ========= ========= ===========
NET LOSS PER LIMITED
PARTNERSHIP UNIT $ (5.17) $ (4.93) $ (14.17) $ (18.22)
========= ========= ========= ===========
WEIGHTED AVERAGE NUMBER
OF 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 Nine Months Ended
September 30,
--------------------------
1998 1997
---------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(907,350) $(1,166,251)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Equity in net loss of Cable Television
Joint Venture 907,350 1,166,251
---------- -------------
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 September 30, 1998 and December 31, 1997, its
Statements of Operations for the three and nine month periods ended September
30, 1998 and 1997 and its Statements of Cash Flows for the nine month periods
ended September 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 September 30, 1998, the Partnership had recorded equity
losses in excess of its investment in the Venture, resulting in a liability of
$5,796,992. 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. The sale was
approved by the owners of a majority of the interests of both the Partnership
and IDS/Jones Growth Partners II, L.P. ("Growth Partners II"). IDS Cable
Corporation (the "Supervising General Partner") has also consented to the
transaction. Upon the closing of the proposed sale of the Aurora System, based
upon financial information as of September 30, 1998, the Venture will repay all
of its indebtedness, including $47,000,000 borrowed under its credit facility,
capital lease obligations totaling $110,972, 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
$51,630,000 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 $12,598,000, or 24.4 percent
of the $51,630,000 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 $12,496,000 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 September 30, 1998, this
distribution will give the Partnership's limited partners an approximate return
of $197 for each $250 limited partnership interest, or $788 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 from the closing date 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 an approximate return of $13 for each $250
limited partnership interest, or $52 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, most likely in the
5
fourth quarter of 1999. 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 nine month periods ended
September 30, 1998 (reflecting the Partnership's 24.4 percent interest in the
Venture) were $67,111 and $196,700, respectively, compared to $59,241 and
$176,868, 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 nine month periods ended September
30, 1998 (reflecting the Partnership's 24.4 percent interest in the Venture)
were $6,711 and $19,670, respectively, compared to $5,924 and $17,687,
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
nine months ended September 30, 1998 (reflecting the Partnership's 24.4 percent
interest in the Venture) were $75,358 and $227,710, respectively, compared to
$63,728 and $200,306, respectively, for the similar 1997 periods.
The Supervising General Partners may also be reimbursed for certain
expenses incurred on behalf of the Venture. There were no reimbursements made
to the Supervising General Partners during the three and nine month periods
ended September 30, 1998 and 1997.
6
(4) Financial information regarding the Venture is presented below.
UNAUDITED BALANCE SHEETS
------------------------
September 30, 1998 December 31, 1997
------------------ -----------------
ASSETS
------
Cash and trade receivables $ 510,569 $ 690,468
Investment in cable television properties 38,184,094 41,007,753
Other assets 313,930 463,878
------------ ------------
Total assets $ 39,008,593 $ 42,162,099
============ ============
LIABILITIES AND PARTNERS' DEFICIT
---------------------------------
Debt $ 50,117,619 $ 50,093,792
Accounts payable and accrued liabilities 4,287,364 3,746,047
Partners' contributed capital 57,344,709 57,344,709
Accumulated deficit (72,741,099) (69,022,449)
------------ ------------
Total liabilities and partners' deficit $ 39,008,593 $ 42,162,099
============ ============
7
UNAUDITED STATEMENTS OF OPERATIONS
----------------------------------
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
--------------------------- --------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
Revenues $ 5,500,894 $ 4,855,813 $16,122,933 $14,497,368
Operating expenses 2,997,425 2,628,395 8,754,851 8,028,851
Management and supervision fees
and allocated overhead from
General Partners 611,394 528,250 1,820,001 1,618,281
Depreciation and amortization 2,207,141 2,017,835 6,313,083 6,816,498
----------- ----------- ----------- -----------
Operating loss (315,066) (318,667) (765,002) (1,966,262)
----------- ----------- ----------- -----------
Interest expense (891,653) (1,002,985) (2,786,417) (2,828,040)
Other, net (150,355) 28,026 (167,231) 14,585
----------- ----------- ----------- -----------
Net loss $(1,357,074) $(1,293,626) $(3,718,650) $(4,779,717)
=========== =========== =========== ===========
Management fees paid to the Managing General Partner by the Venture totaled
$275,045 and $806,147, respectively, for the three and nine months ended
September 30, 1998 compared to $242,790 and $724,868, respectively, for the
comparable 1997 periods. Supervision fees paid to the Supervising General
Partner totaled $27,505 and $80,615, respectively, for the three and nine months
ended September 30, 1998 compared to $24,279 and $72,487, respectively, for the
comparable 1997 periods. Reimbursements for overhead and administrative
expenses paid to JIC totaled $308,844 and $933,239, respectively, for the three
and nine months ended September 30, 1998 compared to $261,181 and $820,926,
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 $907,350, which represents the Partnership's share of
losses generated by the Venture during the nine months ended September 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 Growth Partners II 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.
The sale was approved by the owners of a majority of the interests of both the
Partnership and IDS/Jones Growth Partners II. The Supervising General Partner
has also consented to the transaction. Upon the closing of the proposed sale of
the Aurora System, based upon financial information as of September 30, 1998,
the Venture will repay all of its indebtedness, including $47,000,000 borrowed
under its credit facility, capital lease obligations totaling $110,972, 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
$51,630,000 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 $12,598,000, or 24.4 percent
of the $51,630,000 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 $12,496,000 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 September 30, 1998, this
distribution will give the Partnership's limited partners an approximate return
of $197 for each $250 limited partnership interest, or $788 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 from the closing date 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 an approximate return of $13 for each $250
limited partnership interest, or $52 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, most likely in the fourth quarter of 1999. 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 nine months ended September 30, 1998, the Venture generated net
cash from operating activities totaling $3,259,672, which is available to fund
capital expenditures and non-operating costs. During the first nine months of
1998, the Venture expended approximately $3,215,000 on capital expenditures.
Approximately 46 percent of the expenditures
9
related to construction of service drops to subscriber homes. Approximately 34
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 until it is sold. 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 $1,095,000. Approximately 66 percent of
the anticipated capital expenditures is for plant extensions to new homes
passed. Approximately 9 percent of the 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 these
expenditures is expected to be provided by cash generated from operations and,
if necessary and 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 September 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 September 30, 1998, all
$47,000,000 was outstanding under this agreement. 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 September 30, 1998 and 1997 were 7.18
percent and 7.32 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.
RESULTS OF OPERATIONS
- ---------------------
Revenues of the Venture's Aurora System increased $645,081, or
approximately 13 percent, to $5,500,894 for the three month period ended
September 30, 1998 compared to $4,855,813 for the comparable 1997 period.
Revenues increased $1,625,565, or approximately 11 percent, to $16,122,933 for
the nine months ended September 30, 1998 compared to $14,497,368 for the
comparable 1997 period. Increases in basic service revenues primarily accounted
for the increases in revenues for the three and nine month periods ended
September 30, 1998. Basic service rate increases accounted for approximately 36
percent and 38 percent, respectively, of the increases in revenues for the three
and nine month periods ended September 30, 1998. Increases in the number of
basic service subscribers accounted for approximately 34 percent and 42 percent,
respectively, of the increases in revenues for the three and nine month periods.
The number of basic service subscribers increased 3,054, or approximately 6
percent, to 51,665 at September 30, 1998 compared to 48,611 at September 30,
1997. No other individual factor was significant to the increases in revenues.
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 $369,030, or approximately 14 percent, to
$2,997,425 for the three month period ended September 30, 1998 compared to
$2,628,395 for the comparable 1997 period. Operating expenses increased
$726,000, or approximately 9 percent, to $8,754,851 for the nine months ended
September 30, 1998 compared to $8,028,851 for the comparable 1997 period.
Increases in programming fees primarily accounted for the increases in operating
expenses for the three and nine month periods. No other individual factor
contributed significantly to the increases in operating expenses. Operating
expenses represented 54 percent of revenues for both of the three month periods
ended September 30, 1998 and 1997, and 54 percent and 55 percent of revenues,
respectively, for the nine month periods ended September 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
10
the items disclosed on the financial statements, rather it is included because
it is an industry standard. Operating cash flow increased $276,051, or
approximately 12 percent, to $2,503,469 for the three month period ended
September 30, 1998 compared to $2,227,418 for the comparable 1997 period.
Operating cash flow increased $899,565, or approximately 14 percent, to
$7,368,082 for the nine months ended September 30, 1998 compared to $6,468,517
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 $83,144, or approximately 16 percent, to $611,394 for the
three month period ended September 30, 1998 compared to $528,250 for the
comparable 1997 period. Management and supervision fees and allocated overhead
from the General Partners increased $201,720, or approximately 12 percent, to
$1,820,001 for the nine months ended September 30, 1998 compared to $1,618,281
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 increased $189,306, or approximately
9 percent, to $2,207,141 for the three month period ended September 30, 1998
compared to $2,017,835 for the comparable 1997 period. This increase was
primarily due to capital additions in 1998. Depreciation and amortization
expense decreased $503,415, or approximately 7 percent, to $6,313,083 for the
nine months ended September 30, 1998 compared to $6,816,498 for the comparable
1997 period. This decrease was primarily due to the maturation of a portion of
the intangible asset base.
Operating loss decreased $3,601, or approximately 1 percent, to $315,066
for the three month period ended September 30, 1998 compared to $318,667 for the
similar 1997 period. This decrease was due to the increase in operating cash
flow exceeding the increases in management and supervision fees and allocated
overhead from the General Partners and depreciation and amortization expense.
Operating loss decreased $1,201,260, or approximately 61 percent, to $765,002
for the nine months ended September 30, 1998 compared to $1,966,262 in 1997.
This decrease was due to the increase in operating cash flow and the decrease in
depreciation and amortization expense exceeding the increase in management and
supervision fees and allocated overhead from the General Partners.
Interest expense decreased $111,332, or approximately 11 percent, to
$891,653 for the three month period ended September 30, 1998 compared to
$1,002,985 for the comparable 1997 period. Interest expense decreased $41,623,
or approximately 1 percent, to $2,786,417 for the nine months ended September
30, 1998 compared to $2,828,040 for the comparable 1997 period. These decreases
were due to lower effective interest rates on interest bearing obligations.
The Venture's loss increased $63,448, or approximately 5 percent, to
$1,357,074 for the three month period ended September 30, 1998 compared to
$1,293,626 for the comparable 1997 period. This increase was primarily due to
the increase in depreciation and amortization expense. The Venture's loss
decreased $1,061,067, or approximately 22 percent, to $3,718,650 for the nine
months ended September 30, 1998 compared to $4,779,717 for the comparable 1997
period. This decrease was due to the factors discussed above.
11
Part II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
The sale of the Aurora System was subject to the approval of the holders of a
majority of the limited partnership interests of the Partnership. A vote of the
limited partners was conducted by the Managing General Partner by mail in
September and October 1998. Limited partners of record at the close of business
on August 31, 1998 were entitled to notice of, and to participate in, this vote
of limited partners. Following are the final results of the vote of the limited
partners:
No. of
Interests Approved Against Abstained Did Not Vote
Entitled to --------------- ---------------- -------------- ----------------
Vote No. % No. % No. % No. %
------------- ------- ----- ------- ----- ------ ----- ------- -----
Aurora System Sale 63,383 33,971 53.6 1,029 1.6 838 1.3 27,545 43.5
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: November 13, 1998
13