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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, 1994.
or
( ) 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 0-15378
CABLE TV FUND 14-A, LTD.
Exact name of registrant as specified in charter
Colorado #84-1024657
State of organization I.R.S. employer I.D.#
9697 East Mineral Avenue, P.O. Box 3309, Englewood, Colorado 80155-3309
Address of principal executive office
(303) 792-3111
Registrant's telephone number
Indicate by check mark whether the registrant (l) has filed all reports
required to be filed by Section l3 or l5(d) of the Securities Exchange Act of
l934 during the preceding l2 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
----- -----
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CABLE TV FUND 14-A
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
March 31, December 31,
ASSETS 1994 1993
------ ------------- ------------
CASH $ 230,618 $ 476,782
TRADE RECEIVABLES, less allowance for doubtful receivables of
$52,735 and $72,862 at March 31, 1994 and December 31, 1993,
respectively 756,530 938,470
INVESTMENT IN CABLE TELEVISION PROPERTIES:
Property, plant and equipment, at cost 109,585,243 108,455,632
Less- accumulated depreciation (49,650,282) (47,132,923)
------------- ------------
59,934,961 61,322,709
Franchise costs, net of accumulated amortization of $19,609,515
and $18,607,312 at March 31, 1994 and December 31, 1993,
respectively 14,529,147 15,531,350
Subscriber lists, net of accumulated amortization of $7,746,144
and $7,510,999 at March 31, 1994 and December 31, 1993,
respectively 1,910,206 2,145,351
Costs in excess of interests in net assets purchased, net of
accumulated amortization of $689,147 and $660,057 at
March 31, 1994 and December 31, 1993, respectively 6,104,111 6,133,201
Investment in cable television joint venture 7,044,572 7,351,293
------------- ------------
Total investment in cable television properties 89,522,997 92,483,904
DEPOSITS, PREPAID EXPENSES AND DEFERRED CHARGES 278,096 207,770
------------- ------------
Total assets $ 90,788,241 $ 94,106,926
============= ============
The accompanying notes to unaudited financial statements
are an integral part of these balance sheets.
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CABLE TV FUND 14-A
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
March 31, December 31,
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) 1994 1993
------------------------------------------- ------------- ------------
LIABILITIES:
Debt $ 74,258,498 $ 75,601,829
Accounts payable-
Trade 162,845 106,674
General Partner 1,004,121 58,974
Accrued liabilities 1,271,990 1,849,282
Subscriber prepayments 129,896 101,933
------------ ------------
Total liabilities 76,827,350 77,718,692
------------ ------------
PARTNERS' CAPITAL (DEFICIT):
General Partner-
Contributed capital 1,000 1,000
Accumulated deficit (547,622) (523,349)
------------ ------------
(546,622) (522,349)
------------ ------------
Limited Partners-
Net contributed capital (160,000 units outstanding at
March 31, 1994 and December 31, 1993) 68,722,000 68,722,000
Accumulated deficit (54,214,487) (51,811,417)
------------ ------------
14,507,513 16,910,583
------------ ------------
Total liabilities and partners' capital (deficit) $ 90,788,241 $ 94,106,926
============ =============
The accompanying notes to unaudited financial statements
are an integral part of these balance sheets.
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CABLE TV FUND 14-A
(A Limited Partnership)
UNAUDITED STATEMENTS OF OPERATIONS
For the Three Months Ended
March 31,
-------------------------------
1994 1993
----------- ------------
REVENUES $ 9,718,761 $ 9,498,149
COSTS AND EXPENSES:
Operating, general and administrative 5,905,876 5,662,220
Management fees and allocated overhead from General Partner 1,250,717 1,109,850
Depreciation and amortization 3,783,797 3,804,044
----------- ------------
OPERATING LOSS (1,221,629) (1,077,965)
----------- ------------
OTHER INCOME (EXPENSE):
Interest expense (885,307) (961,208)
Other, net (13,686) 5,136
----------- ------------
Total other income (expense), net (898,993) (956,072)
----------- ------------
LOSS BEFORE EQUITY IN NET LOSS OF CABLE TELEVISION
JOINT VENTURE (2,120,622) (2,034,037)
EQUITY IN NET LOSS OF CABLE TELEVISION JOINT VENTURE (306,721) (387,120)
----------- ------------
NET LOSS $(2,427,343) $ (2,421,157)
=========== ============
ALLOCATION OF NET LOSS:
General Partner $ (24,273) $ (24,212)
=========== ============
Limited Partners $(2,403,070) $ (2,396,945)
=========== ============
NET LOSS PER LIMITED PARTNERSHIP UNIT $ (15.02) $ (14.98)
=========== ============
WEIGHTED AVERAGE NUMBER OF LIMITED PARTNERSHIP
UNITS OUTSTANDING 160,000 160,000
=========== ============
The accompanying notes to unaudited financial statements
are an integral part of these statements.
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CABLE TV FUND 14-A
(A Limited Partnership)
UNAUDITED STATEMENTS OF CASH FLOWS
For the Three Months Ended
March 31,
------------------------------
1994 1993
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(2,427,343) $(2,421,157)
Adjustments to reconcile net loss to net cash provided by
operating activities:
Depreciation and amortization 3,783,797 3,804,044
Equity in net loss of cable television joint venture 306,721 387,120
Amortization of interest rate protection contract 4,167 32,738
Increase (decrease) in advances from General Partner 945,147 (457,354)
Decrease in trade receivables 181,940 167,166
Increase in deposits, prepaid expenses and deferred charges (74,493) (133,230)
Decrease in trade accounts payable, accrued liabilities and
subscriber prepayments (493,158) (637,488)
----------- -----------
Net cash provided by operating activities 2,226,778 741,839
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment, net (1,129,611) (1,859,149)
----------- -----------
Net cash used in investing activities (1,129,611) (1,859,149)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings 19,524 19,269
Repayment of debt (1,362,855) (979,757)
Purchase of interest rate protection contract - (50,000)
----------- -----------
Net cash used in financing activities (1,343,331) (1,010,488)
----------- -----------
Decrease in cash (246,164) (2,127,798)
Cash, beginning of period 476,782 3,833,407
----------- -----------
Cash, end of period $ 230,618 $ 1,705,609
=========== ===========
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ 908,202 $ 1,039,688
=========== ===========
The accompanying notes to unaudited financial statements
are an integral part of these statements.
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CABLE TV FUND 14-A
(A Limited Partnership)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
(1) This Form 10-Q is being filed in conformity with the SEC requirements
for unaudited financial statements and does not contain all of the necessary
footnote disclosures required for a fair presentation of the Balance Sheets and
Statements of Operations and Cash Flows in conformity with generally accepted
accounting principles. However, in the opinion of management, this data
includes all adjustments, consisting only of normal recurring accruals,
necessary to present fairly the financial position of Cable TV Fund 14-A (the
"Partnership") at March 31, 1994 and December 31, 1993 and its Statements of
Operations and Cash Flows for the three month periods ended March 31, 1994 and
1993. Results of operations for these periods are not necessarily indicative
of results to be expected for the full year.
The Partnership owns and operates the cable television systems serving
the areas in and around Turnersville, New Jersey, Buffalo, Minnesota,
Naperville, Illinois, Calvert County, Maryland, and certain communities in
Central Illinois. In addition, the Partnership owns an approximate 27 percent
interest in Cable TV Fund 14-A/B Venture (the "Venture"). The Venture owns and
operates the cable television system serving certain areas in Broward County,
Florida (the "Broward County System").
(2) Jones Intercable, Inc., a publicly held Colorado corporation, (the
"General Partner") manages the Partnership and receives a fee for its services
equal to 5 percent of the gross revenues of the Partnership, excluding revenues
from the sale of cable television systems or franchises. Management fees for
the three month periods ended March 31, 1994 and 1993 (excluding the
Partnership's interest in the Venture) were $485,938 and $474,907,
respectively.
The Partnership reimburses the General Partner for certain allocated
overhead and administrative expenses. These expenses represent the salaries
and related benefits paid to corporate personnel, rent, data processing
services and other corporate related facilities costs. Such personnel provide
engineering, marketing, accounting, legal and investor relations services to
the Partnership. Allocations of personnel costs are based primarily on actual
time spent by employees of the General Partner with respect to each partnership
managed. Remaining overhead costs are allocated based on total revenues and/or
the cost of partnership assets managed. Effective December 1, 1993, the
allocation method was changed to be based only on revenue, which the General
Partner believes provides a more accurate method of allocation. Systems owned
by the General Partner and all other systems owned by partnerships for which
Jones Intercable, Inc. is the general partner are also allocated a
proportionate share of these expenses. The General Partner believes that the
methodology used in allocating overhead and administrative expenses is
reasonable. Reimbursements made to the General Partner by the Partnership for
allocated overhead and administrative expenses for the three month periods
ended March 31, 1994 and 1993 (excluding the Partnership's interest in the
Venture) were $764,779 and $634,943, respectively.
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(3) Financial information regarding the Venture is presented below.
UNAUDITED BALANCE SHEETS
March 31, 1994 December 31, 1993
-------------- -----------------
ASSETS
------
Cash and accounts receivable $ 1,293,240 $ 1,140,477
Investment in cable television properties 69,399,125 70,822,864
Other assets 399,063 352,475
------------- -------------
Total Assets $ 71,091,428 $ 72,315,816
============= =============
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
Debt $ 43,434,538 $ 43,461,730
Payables and accrued liabilities 1,306,959 1,372,344
Partner's contributed capital 70,000,000 70,000,000
Accumulated deficit (43,650,069) (42,518,258)
------------- -------------
Total liabilities and partners' capital $ 71,091,428 $ 72,315,816
============= =============
UNAUDITED STATEMENTS OF OPERATIONS
For the Three Months Ended
March 31,
------------------------------------
1994 1993
----------- -----------
Revenues $ 5,495,740 $ 5,505,923
Operating, general and administrative expense (3,060,413) (3,046,276)
Management fees and allocated overhead to General Partner (688,291) (649,086)
Depreciation and amortization (2,304,020) (2,550,736)
----------- -----------
Operating loss (556,984) (740,175)
Interest expense (576,250) (701,158)
Other, net 1,423 12,844
----------- -----------
Net loss $(1,131,811) $(1,428,489)
=========== ===========
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Management fees and reimbursements for overhead and
administrative expenses paid to Jones Intercable, Inc. by the Venture totalled
$274,787 and $413,504, respectively for the three month period ended March 31,
1994, and $275,296 and $373,790, respectively, for the three month period
ended March 31, 1993. Management fees and reimbursements paid by the Venture
and attributable to the Partnership totalled $74,467 and $112,059,
respectively, for the three months ended March 31, 1994, and $74,605 and
$101,297, respectively, for the three months ended March 31, 1993.
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FINANCIAL CONDITION
Capital expenditures totalled approximately $1,130,000 during the first
three months of 1994. Approximately 24 percent of the expenditures related to
construction of service drops to subscribers homes. Approximately 13 percent
of the expenditures was related to system upgrades and rebuilds in all of the
Partnership's operating systems. Approximately 13 percent of the expenditures
related to new plant construction. The remainder of the expenditures was for
various enhancements in all of the Partnership's systems. These expenditures
were funded primarily from cash generated from operations. Subject to the
regulatory matters discussed below, capital expenditures for the remainder of
1994 are approximately $7,775,000. Approximately 34 percent of the
expenditures is for new plant construction. Approximately 24 percent is for
construction of service drops to subscribers' homes. Approximately 13 percent
is for system upgrades and rebuilds. The actual level of capital expenditures
will depend, in part, upon the General Partner's determination as to the proper
scope and timing of such expenditures in light of the FCC's announcement of a
further rulemaking regarding the 1992 Cable Act on February 22, 1994, and the
Partnership's liquidity position. Funding for improvements is expected to come
from cash on hand, cash generated from operations, and, if available,
borrowings under the negotiated credit facility discussed below.
At December 31, 1992, the then-outstanding balance of $79,000,000 on the
Partnership's revolving credit facility converted to a term loan. The term
loan is payable in 26 consecutive quarterly installments which began March 31,
1993. The Partnership repaid $1,311,400 during the three-month period ended
March 31, 1994. Such repayments were funded from cash on hand, cash generated
from operations and advances from the General Partner. Installments for the
remainder of 1994 total $3,934,200. Interest on the outstanding principal
balance is at the Partnership's option of prime plus 1/4 percent or a fixed
rate defined as the CD rate plus 1-3/8 percent or the London Interbank Offered
Rate plus 1-1/4 percent. The effective interest rates on outstanding
obligations as of March 31, 1993 and 1994 were 4.78 percent and 4.50 percent,
respectively. The General Partner is currently negotiating to restructure the
loan to establish a revolving credit period and increase the maximum amount
available under the credit facility. Until the credit facility is successfully
renegotiated, the Partnership will need to rely on cash on hand, cash generated
from operations and advances from the General Partner to fund principal
repayments and capital expenditures. Advances from the General Partner will be
made in the General Partner's discretion and the General Partner has no
obligation to make advances to the Partnership.
On January 12, 1993, the Partnership entered into an interest rate cap
agreement covering outstanding debt obligations of $5,000,000. The Partnership
paid a fee of $50,000. The agreement protects the Partnership from interest
rates that exceed 7 percent for three years from the date of the agreement.
The fee is being charged to interest expense over the life of the agreement
using the straight-line method.
Subject to regulatory matters discussed below and assuming successful
renegotiation of the credit facility, of which there can be no assurance, the
General Partner believes that the Partnership has sufficient sources of capital
to meet its presently anticipated needs.
In addition to those systems owned exclusively by the Partnership, Cable
TV Fund 14-A owns an interest of approximately 27 percent in Cable TV Fund
14-A/B Venture (the "Venture"). The Partnership's investment in this cable
television joint venture, accounted for under the equity method, decreased by
$306,721 compared to the December 31, 1993 balance. This decrease represents
the Partnership's portion of the Venture's loss for the first three months of
1994. These losses and the losses of the Partnership are anticipated to
continue.
During the first three months of 1994, capital expenditures in the
Venture-owned Broward County System totalled approximately $880,300.
Approximately 27 percent of these expenditures related to plant extensions and
approximately 31 percent related to service drops to homes. Rebuild of the
cable plant accounted for approximately 11 percent of these expenditures. The
remainder of the expenditures was for various enhancements in the Broward
County System. Such expenditures were funded primarily from cash generated
from operations. Anticipated capital expenditures for the remainder of 1994
are approximately $2,243,000. Plant extensions are expected to account for
approximately 24 percent of the remaining expenditures. Approximately 25
percent will relate to service drops to homes. Approximately 16 percent will
relate to converter replacements. Approximately 10 percent will relate to
plant rebuilds in the Broward County System. The remainder of the anticipated
expenditures is for various enhancements in the Broward
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County System. These capital expenditures will be funded from cash on hand and
cash generated from operations. The level of capital expenditures will depend,
in part, upon the General Partner's determination as to the proper scope and
timing of such expenditures in light of the FCC's announcement of a further
rulemaking regarding the 1992 Cable Act on February 22, 1994.
On December 31, 1992, the then outstanding balance of $46,800,000 on the
Venture's credit facility converted to a term loan. The balance outstanding on
the term loan at March 31, 1994 was $43,290,000. The term loan is payable in
quarterly installments which began March 31, 1993 and is payable in full by
December 31, 1999. Installments due during 1994 were scheduled to be
$3,510,000, however the General Partner obtained a waiver of the installment
due March 31, 1994 to provide liquidity for capital expenditures. The General
Partner is negotiating to reduce principal payments further as well as adjust
certain leverage covenants of the credit facility. The regulatory matters
discussed below may have an adverse effect on the General Partner's ability to
renegotiate the credit facility. If the General Partner is unsuccessful in
renegotiating this credit facility, which is not anticipated, the Venture will
have to rely on cash on hand, cash generated from operations and, in its
discretion, advances from the General Partner to fund scheduled principal
repayments and capital expenditures. Interest is at the Venture's option of
prime plus 1/2 percent, LIBOR plus 1-1/2 percent or CD rate plus 1-5/8 percent.
The effective interest rates on amounts outstanding as of March 31, 1994 and
1993 are 5.04 percent and 4.78 percent, respectively. In January 1993, the
Venture entered into an interest rate cap agreement covering outstanding debt
obligations of $25,000,000. The Venture paid a fee of $246,250. The agreement
protects the Venture from interest rates that exceeded 7 percent for three
years from the date of the agreement.
Subject to regulatory matters discussed below and the General Partner's
ability to successfully renegotiate the Venture's credit facility, the General
Partner believes that the Venture has sufficient sources of capital to service
its presently anticipated needs.
Regulation and Legislation
Congress enacted the Cable Television Consumer Protection and Competition
Act of 1992 (the "1992 Cable Act"), which became effective on December 4, 1992.
This legislation has caused significant changes to the regulatory environment
in which the cable television industry operates. The 1992 Cable Act generally
allows for a greater degree of regulation of the cable television industry.
Under the 1992 Cable Act's definition of effective competition, nearly all
cable systems in the United States, including those owned and managed by the
Partnership and the Venture, are subject to rate regulation of basic cable
services. In addition, the 1992 Cable Act allows the FCC to regulate rates for
non-basic service tiers other than premium services in response to complaints
filed by franchising authorities and/or cable subscribers. In April 1993, the
FCC adopted regulations governing rates for basic and non-basic services. The
FCC's rules became effective on September 1, 1993.
Based on the General Partner's assessment of the FCC's rulemakings
concerning rate regulation under the 1992 Cable Act, the Partnership and the
Venture reduced rates charged for certain regulated services effective
September 1, 1993. These reductions resulted in some decrease in revenues and
operating income before depreciation and amortization, however the decrease is
not as severe as originally anticipated. On February 22, 1994, the FCC
announced a further rulemaking which could reduce rates further. The new rate
regulations, which were released in March 1994, will be effective on May 15,
1994. However, the rules provide for a deferral of refund liability for 60
days under certain conditions, effectively making the rules effective on
July 14, 1994. The new rate regulations will likely require further
reductions in rates in most of the Partnership's and the Venture's systems.
The General Partner has not yet been able to quantify the impact of the new
rate regulations, but it believes that the new rate regulations will have a
negative effect on revenues and operating income before depreciation and
amortization. The General Partner has undertaken actions to mitigate a
portion of these reductions primarily through (a) new service offerings, (b)
product re- marketing and re-packaging and (c) marketing efforts directed at
non-subscribers.
The 1992 Cable Act contains new broadcast signal carriage requirements,
and the FCC has adopted regulations implementing the statutory requirements.
These new rules allow a local commercial broadcast television station to elect
whether to demand that a cable system carry its signal or to require the cable
system to negotiate with the station for "retransmission consent." A cable
system is generally required to devote up to one-third of its activated channel
capacity
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for the mandatory carriage of local commercial broadcast television stations,
and non-commercial television stations are also given mandatory carriage
rights, although such stations are not given the option to negotiate
retransmission consent for the carriage of their signals by cable systems.
Additionally, cable systems also are required to obtain retransmission consent
from all commercial television stations (except for commercial
satellite-delivered independent "superstations"), which do not elect mandatory
carriage, commercial radio stations and, in some instances, low-power
television stations carried by cable systems.
The retransmission consent rules went into effect on October 6, 1993.
Throughout all cable television systems owned by the Partnership and the
Venture, no television stations withheld their consent to retransmission of
their signal. Certain broadcast signals are being carried pursuant to
extensions, and the General Partner expects to finally conclude retransmission
consent negotiations with those remaining stations whose signals are being
carried pursuant to extensions without having to terminate the distribution of
any of those signals. However, there can be no assurance that such will occur.
If any broadcast station currently being carried pursuant to an extension is
dropped, there could be a negative effect on the system in which it is dropped
if a significant number of subscribers in such system were to disconnect their
service. However, in most cases, only one broadcaster in any market is being
carried pursuant to an extension arrangement, and the dropping of such
broadcaster, were that to occur, is not expected to have a negative effect on
the system.
There have been several lawsuits filed by cable operators and
programmers in Federal court challenging various aspects of the 1992 Cable Act,
including provisions relating to mandatory broadcast signal carriage,
retransmission consent, access to cable programming, rate regulations,
commercial leased channels and public access channels. On April 8, 1993, a
three-judge Federal district court panel issued a decision upholding the
constitutionality of the mandatory signal carriage requirements of the 1992
Cable Act. That decision has been appealed directly to the United States
Supreme Court and a decision is expected in the next several months. Appeals
have been filed in a Federal appellate court challenging the validity of the
FCC's retransmission consent rules.
RESULTS OF OPERATIONS
Revenues of the Partnership increased $220,612, or approximately 2
percent, from $9,498,149 for the first quarter of 1993 to $9,718,761 for the
first quarter of 1994. An increase in the subscriber base primarily accounted
for the increase in revenues. Basic subscribers increased 4,055 or
approximately 5 percent, from 88,434 at March 31, 1993 to 92,489 at March 31,
1994. The increase in revenues would have been greater but for the reduction
in basic rates due to new basic rate regulations issued by the FCC in May 1993
with which the Partnership complied effective September 1, 1993. In addition,
on February 22, 1994, the FCC announced a further rulemaking which, when
implemented, could reduce rates further. No other individual factor was
significant to the increases in revenues.
Operating, general and administrative expenses increased $243,656, or
approximately 4 percent, from $5,662,220 in 1993 to $5,905,876 in 1994.
Operating, general and administrative expense represented 61 percent of revenue
in 1994 compared to 60 percent in 1993. An increase in programming fees
primarily accounted for the increase. This increase was due, in part, to the
increase in the basic subscriber base. No other individual factor was
significant to the increase in operating, general and administrative expenses.
Management fees and allocated overhead from the General Partner increased
$140,867, or approximately 13 percent, from $1,109,850 in 1993 to $1,250,717 in
1994. The increase is due primarily to an increase in expenses allocated from
the General Partner. Depreciation and amortization expense decreased $20,247
or approximately 1 percent, from $3,804,044 in 1993 to $3,783,797 in 1994
primarily due to the maturation of a portion of the tangible asset base.
Operating loss increased $143,664, or approximately 13 percent, from
$1,077,965 in 1993 to $1,221,629 in 1994. The increase is due to the increases
in operating, general and administrative expenses and management fees and
allocated overhead from the General Partner exceeding the increase in revenues.
Operating income before depreciation and amortization decreased $163,911, or
approximately 6 percent, from $2,726,079 for the three months ended March 31,
1993 to $2,562,168 for the similar period in 1994. This decrease is due to the
increases in operating, general and administrative expense and management fees
and allocated overhead from the General Partner exceeding the increase in
revenues.
Interest expense decreased $75,901, or approximately 8 percent, from
$961,208 in 1993 to $885,307 in 1994 due primarily to lower outstanding
balances on interest bearing obligations. Loss before equity in net loss of
cable television joint venture increased $86,585, or approximately 4 percent,
from $2,034,037 in 1993 to $2,120,622 in 1994 primarily due to the increase in
operating loss.
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In addition to the systems owned exclusively by the Partnership, Cable
TV Fund 14-A owns an approximate 27 percent interest in the Venture.
The Venture's revenues decreased $10,183, or less than 1 percent, from
$5,505,923 for the three months ended March 31, 1993 to $5,495,730 in 1994.
This decrease in revenues is due to the reduction in basic rates due to basic
rate regulations issued by the FCC in May 1993 with which the Venture complied
effective September 1, 1993. In addition, on February 22, 1994, the FCC
announced a further rulemaking which, when implemented, could reduce rates
further. The decrease in revenue due to rate reductions was offset, in part,
by increases in basic subscribers and pay units of 6 percent and 12 percent,
respectively. Basic subscribers totalled 46,611 at March 31, 1994 compared to
44,043 at March 31, 1993. Pay units totalled 39,157 at March 31, 1994 compared
to 34,959 at March 31, 1993. No other individual factor was significant to the
decrease in revenues.
Operating, general and administrative expense increased $14,137, or less
than one percent, from $3,046,276 at March 31, 1993 to $3,060,413 at March 31,
1994. Operating, general and administrative expense represented 55 percent of
revenue for the first quarter of 1993 compared to 56 percent for the similar
period in 1994. The increase in operating, general and administrative expense
was due primarily to increases in programming fees. No other individual factor
was significant to the increase in operating, general and administrative
expense. Management fees and allocated overhead from the General Partner
increased $39,205, or approximately 6 percent, from $649,086 at March 31, 1993
to $688,291 at March 31, 1994 due primarily to an increase in expenses
allocated from the General Partner. Depreciation and amortization expense
decreased $246,716, or approximately 10 percent, from $2,550,736 at March 31,
1993 to $2,304,020 at March 31, 1994. This decrease is due to the maturation
of the Venture's asset base.
In the Broward County System, operating loss decreased $183,191, or
approximately 25 percent, from $740,175 at March 31, 1993 to $556,984 at March
31, 1994 due to the decrease in depreciation and amortization expense.
Operating income before depreciation and amortization decreased $63,525, or
approximately 4 percent, from $1,810,561 for the three months ended March 31,
1993 to $1,747,036 for the similar period in 1994. This decrease is due to the
increases in operating, general and administrative expense and management fees
and allocated overhead from the General Partner exceeding the increase in
revenues.
Interest expense decreased $124,908, or approximately 18 percent, from
$701,158 at Marach 31, 1993 to $576,250 at March 31, 1994 due to lower
outstanding balances on interest bearing obligations. Net loss of the Venture
decreased $296,678, or approximately 21 percent, from $1,428,489 at March 31,
1993 to $1,131,811 at March 31, 1994. This decrease was primarily attributed
to the improvement in operating loss and the decrease in interest expense.
These losses are the result of the factors discussed above and are expected to
continue in the future.
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Part II - OTHER INFORMATION
NONE
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
CABLE TV FUND 14-A
BY: JONES INTERCABLE, INC.
General Partner
By: /s/ KEVIN P. COYLE
Kevin P. Coyle
Group Vice President/Finance
(Principal Financial Officer)
Dated: May 13, 1994
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