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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 June 30, 1994.
( ) 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 0-19075
Jones Programming Partners 1-A, Ltd.
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Exact name of registrant as specified in charter
Colorado #84-1088820
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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
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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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JONES PROGRAMMING PARTNERS 1-A, LTD.
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
June 30, December 31,
1994 1993
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ASSETS
------
CASH AND CASH EQUIVALENTS $ 779,367 $ 834,066
RECEIVABLES:
Foreign income receivable 94,778 489,410
Domestic income receivable, net of unamortized
discount of $18,231 and $28,202 at June 30, 1994 and
December 31, 1993, respectively 256,769 246,798
INVESTMENT/ADVANCES FOR FILM PRODUCTION,
net of accumulated amortization of $7,284,312 and $7,112,777
at June 30, 1994 and December 31, 1993, respectively 1,624,962 1,787,342
OTHER ASSETS 25,619 17,154
---------- ----------
Total assets $2,781,495 $3,374,770
========== ==========
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
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JONES PROGRAMMING PARTNERS 1-A, LTD.
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
June 30, December 31,
1994 1993
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LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
-------------------------------------------
LIABILITIES:
Accounts payable to affiliates $ - $ 225,418
Accrued distributions payable to partners 160,897 160,897
Accrued liabilities 2,970 6,006
----------- ------------
Total liabilities 163,867 392,321
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PARTNERS' CAPITAL (DEFICIT):
General Partner -
Contributed capital 1,000 1,000
Distributions (24,741) (21,523)
Accumulated deficit (4,048) (3,618)
----------- ------------
(27,789) (24,141)
----------- ------------
Limited Partners -
Contributed capital
(12,743 units outstanding at June 30, 1994
and December 31, 1993) 5,459,327 5,459,327
Distributions (2,449,334) (2,130,758)
Accumulated deficit (364,576) (321,979)
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2,645,417 3,006,590
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Total liabilities and partners' capital
(deficit) $ 2,781,495 $ 3,374,770
=========== ============
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
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JONES PROGRAMMING PARTNERS 1-A, LTD.
(A Limited Partnership)
UNAUDITED STATEMENTS OF OPERATIONS
For the Three Months Ended For the Six Months Ended
June 30, June 30,
-------------------------- --------------------------
1994 1993 1994 1993
--------- ----------- --------- -----------
GROSS REVENUES $ 145,908 $ 3,166,609 $ 182,554 $ 3,563,794
COSTS AND EXPENSES:
Costs of filmed entertainment (126,721) (3,049,257) (171,535) (3,385,652)
Distribution fees and expenses (2,477) (197,356) (39,784) (355,462)
Operating, general and administrative expenses (6,562) (8,763) (23,871) (22,317)
--------- ----------- --------- -----------
OPERATING INCOME (LOSS) 10,148 (88,767) (52,636) (199,637)
--------- ----------- --------- -----------
INTEREST INCOME 5,057 1,949 9,609 3,074
--------- ----------- --------- -----------
NET INCOME (LOSS) $ 15,205 $ (86,818) $ (43,027) $ (196,563)
========= =========== ========= ===========
ALLOCATION OF NET INCOME (LOSS):
General Partner $ 152 $ (868) $ (430) $ (1,966)
========= =========== ========= ===========
Limited Partners $ 15,053 $ (85,950) $ (42,597) $ (194,597)
========= =========== ========= ===========
NET INCOME (LOSS) PER LIMITED
PARTNERSHIP UNIT $ 1.18 $ (6.74) $ (3.34) $ (15.27)
========= =========== ========= ===========
WEIGHTED AVERAGE NUMBER OF
LIMITED PARTNERSHIP UNITS
OUTSTANDING 12,743 12,743 12,743 12,743
========= =========== ========= ===========
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
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JONES PROGRAMMING PARTNERS 1-A, LTD.
(A Limited Partnership)
UNAUDITED STATEMENTS OF CASH FLOWS
For the Six Months Ended
June 30,
-----------------------------
1994 1993
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (43,027) $ (196,563)
Adjustments to reconcile net loss to net cash provided by
operating activities:
Amortization of filmed entertainment costs 171,535 3,385,652
Amortization of discount (9,971) (12,011)
Decrease (increase) in foreign income receivable 394,632 (43,518)
Increase in other assets (8,465) (1,314)
Decrease in accrued liabilities and unearned revenue (3,036) (2,029,165)
Decrease in accounts payable to affiliates (225,418) (13,409)
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Net cash provided by operating activities 276,250 1,089,672
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CASH FLOWS FROM INVESTING ACTIVITIES:
Production advances (9,155) (360,945)
Payment of production and overhead fee to General Partner - (500,000)
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Net cash used in investing activities (9,155) (860,945)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (321,794) (321,794)
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Net cash used in financing activities (321,794) (321,794)
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Decrease in cash and cash equivalents (54,699) (93,067)
Cash and cash equivalents, beginning of period 834,066 203,963
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Cash and cash equivalents, end of period $ 779,367 $ 110,896
========= ============
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
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JONES PROGRAMMING PARTNERS 1-A, LTD.
(A Limited Partnership)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
(1) BASIS OF PRESENTATION
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 Jones Programming
Partners 1-A, Ltd. (the "Partnership") at June 30, 1994 and December 31, 1993
and its results of its operations and its cash flows for the three and six
month periods ended June 30, 1994 and 1993. Results of operations for these
periods are not necessarily indicative of results to be expected for the full
year. Certain prior year amounts have been reclassified to conform to the 1994
presentation.
(2) TRANSACTIONS WITH AFFILIATED ENTITIES
Jones Entertainment Group, Ltd., (the "General Partner") receives
a production and overhead fee for administering the affairs of the Partnership
equal to 12 percent of the lower of direct costs or budgeted direct costs of
each programming project. This fee is calculated and payable at the time
principal photography commences on each particular project and, in the case of
a series, is payable on a per episode basis. In the past two years, the
Partnership paid a total of $500,000 representing the production and overhead
fee for "Curacao," which is recorded in Investment/Advances for Film Production
on the Partnership's Unaudited Balance Sheets. It is not anticipated that the
General Partner will receive any additional production and overhead fees from
the Partnership as the Partnership is not expected to invest in any additional
programming projects.
The General Partner also is entitled to reimbursement from the
Partnership for its direct expenses allocable to the operation of the
Partnership, which shall include, but not be limited to, rent, supplies,
telephone, travel, legal expenses, accounting and auditing expenses,
preparation and distribution of reports to investors and salaries of any full
or part-time employees. The General Partner believes that the methodology used
in allocating overhead and administrative expenses is reasonable. For the
three month periods ended June 30, 1994 and 1993, $1,977 and $2,794,
respectively, were charged to the Partnership for such expenses. For the six
month periods ended June 30, 1994 and 1993, $2,220 and $5,571, respectively,
were charged to the Partnership for such expenses.
(3) INVESTMENT/ADVANCES FOR FILM PRODUCTION
"The Little Kidnappers"
In January 1990, the General Partner, on behalf of the
Partnership, entered into an agreement with Jones Maple Leaf Productions
("Maple Leaf") to produce a full-length feature film for television entitled
"The Little Kidnappers." The total film cost was approximately $3,200,000,
which included a production and overhead fee of $300,000 paid to the General
Partner. At June 30, 1994, the Partnership's net investment in the film, after
consideration of amortization, was $251,746.
The Partnership advanced funds as production advances to Maple
Leaf to complete the film. In return for such production advances, the
Partnership received all distribution rights in all markets except Canada in
perpetuity. The General Partner, on behalf of the Partnership, licensed the
film to The Disney Channel and Maple Leaf licensed the film to the Canadian
Broadcasting Corporation. Aggregate license fees of approximately $1,365,000
were received from these parties. The Disney Channel license expired in
September 1993. The General Partner has relicensed the film to The Disney
Channel for an additional license period of five years beginning January 1,
1994, for an additional fee of $300,000. As of June 30, 1994, the Partnership
had received $200,000 from The Disney Channel and is expected to receive the
remaining $100,000 in 1996. The Canadian Broadcasting Corporation license
expired in the second quarter of 1994.
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In April 1991, the General Partner, on behalf of the Partnership,
entered into a distribution agreement with an unaffiliated party, granting
rights to distribute "The Little Kidnappers" in the non-theatrical domestic
markets. At June 30, 1994, gross sales made under this arrangement totalled
$94,190, of which $23,548 was retained by the distributor for its fees. The
remaining $70,642 has been received by the Partnership. In July 1991, the
General Partner, on behalf of the Partnership, entered into an agreement with
an unaffiliated party that purchased the rights to distribute "The Little
Kidnappers" in the domestic home video market for a period not to exceed five
years. Under this agreement, the Partnership is to receive a minimum guarantee
of $500,000. The Partnership received $100,000 upon the execution of the
agreement and delivery of the film, which occurred in October 1991. The
Partnership discounted the remaining $400,000 at an imputed interest rate of 8
percent, which created a discount of $79,157. This discount is being amortized
over a four-year period as gross revenue in the Partnership's Unaudited
Statements of Operations. For the three month periods ended June 30, 1994 and
1993, $5,035, and $6,065 of this discount is included in gross revenues,
respectively. For the six month periods ended June 30, 1994 and 1993, $9,971
and $12,011 of this discount is included in gross revenues, respectively. The
Partnership received $50,000 in October 1992, $75,000 in October 1993, and is
scheduled to receive $75,000 and $200,000 in October 1994 and 1995,
respectively.
In the third quarter of 1990, the General Partner, on behalf of
the Partnership, entered into a distribution agreement with an unaffiliated
party, granting rights to distribute "The Little Kidnappers" in foreign
television and foreign home video markets for a period not to exceed ten years.
At June 30, 1994, gross sales made under this arrangement totalled $1,104,911
of which $343,147 was retained by the distributor for its fees and marketing
costs. The remaining $761,764 will be paid to the Partnership as collected by
the distributor. At June 30, 1994, the Partnership had received $725,676 of
such amount. The remainder will be paid to the Partnership over the next three
to twenty-four months as collected by the distributor. Such collections by the
distributor will generally occur as the film becomes available for exhibition
within the respective territories. The Partnership plans to recover its
remaining investment in this film from revenues in excess of the foreign
television and home video advances described above, as well as future domestic
cable television sales and domestic broadcast syndication.
"The Story Lady"
In April 1991, the General Partner, on behalf of the Partnership,
entered into an agreement with NBC Productions, Inc. for the production of a
full-length made-for-television film entitled "The Story Lady." "The Story
Lady" was licensed for two runs over four years to the NBC television network.
"The Story Lady" aired in December 1991 and 1992, which telecasts constitute
full utilization of the NBC license. The total cost of the film was
approximately $4,300,000, and the Partnership has invested its share of
approximately $1,183,000 in return for world-wide distribution rights to this
film, excluding United States and Canadian broadcast television rights.
Included in the total amount invested is a production and overhead fee of
$120,000 paid to the General Partner. At June 30, 1994, the Partnership's net
investment in the film, after consideration of amortization, was $87,366.
In May 1992, the General Partner, on behalf of the Partnership,
entered into a distribution agreement with an unaffiliated party, granting
rights to distribute "The Story Lady" in the non-theatrical domestic markets.
At June 30, 1994, gross sales made under this arrangement totalled $264,584, of
which $66,146 was retained by the distributor for its fees. The remaining
$198,438 has been received by the Partnership. The General Partner, on behalf
of the Partnership, has entered into an agreement with The Disney Channel,
granting The Disney Channel exclusive domestic television rights to the film
for one year for a license fee of $40,000. Of this license fee, $26,667 is
expected to be received in the third quarter of 1994, with the remaining
balance of $13,333 due in the fourth quarter of 1994.
The Partnership has sub-licensed certain international
distribution rights to a distribution affiliate of NBC for approximately eight
years, after which these rights will revert to the Partnership. At June 30,
1994, gross sales made by this distributor totalled $1,056,188, of which
$279,941 will be retained by the distributor for its fees and marketing costs,
with the remaining $776,247 belonging to the Partnership. At June 30, 1994,
the Partnership had received $717,557 of such amounts. The remaining $58,690
will be paid to the Partnership over the next three to twenty-four months as
collected by the distributor.
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"Curacao"
In October 1992, the General Partner, on behalf of the
Partnership, entered into an agreement with Showtime Networks, Inc.
("Showtime") for the production of a full-length made-for-television film
entitled "Curacao." The total cost of the film was approximately $4,432,000.
In addition to the costs of production, the Partnership paid the General
Partner $500,000 as a production and overhead fee for services rendered in
connection with arranging the Showtime presale and supervising production of
this picture. At June 30, 1994, the Partnership's net investment in the film,
after consideration of amortization, was $1,285,850.
The Partnership has received license fees and a home video
advance totalling $2,650,000 from Showtime in return for granting Showtime the
right to market domestic pay television rights to the film for 42 months and
for the right to market domestic home video rights for seven years. Home video
revenues in excess of $875,000 will be shared 50/50 between the Partnership and
Showtime until Showtime has received $1,875,000 after which the Partnership
will receive all of the home video revenues.
In May 1993, the General Partner, on behalf of the Partnership,
entered into a distribution agreement with an unaffiliated party, granting
rights to distribute "Curacao" in the non-theatrical domestic markets. At June
30, 1994, gross sales made under this arrangement totalled $92,052, of which
$23,013 was retained by the distributor for its fees. The remaining $69,039
has been received by the Partnership.
The Partnership has recently contracted with an unaffiliated
foreign sales agent to market all other rights worldwide. The General Partner
has approved an agreement negotiated by the foreign sales agent with an
unaffiliated party to market international theatrical and home video rights.
The terms of such agreement provide for an advance payment of $950,000 against
international theatrical and home video revenues in return for the exclusive
rights to distribute the film in the above mediums for 10 years. This
unaffiliated party is entitled to a 35 percent distribution fee on net
theatrical rentals and will pay the Partnership a royalty equal to 30 percent
of home video sales. The net receipts to the Partnership will be reduced by
fees due to the foreign sales agent. At June 30, 1994, the Partnership had
recorded international gross revenues of $960,000, of which $294,763 was
retained by the distributor for its fees and marketing costs, with the
remaining $665,237 belonging to the Partnership. This balance had been
received at June 30, 1994.
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JONES PROGRAMMING PARTNERS 1-A, LTD.
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
Capital Resources
The Partnership's potential sources of capital are investments made by
limited partners, advances or licensing proceeds pursuant to agreements with
exhibitors and distributors, funds received from international, theatrical or
home video presales, and funds made available to the Partnership through
co-productions or joint ventures.
The Partnership received limited partner subscriptions totalling
$6,371,500, of which $5,495,419 was available for investment after payment of
sales commissions and other organizational and offering costs. The Partnership
has distributed $36,092 of interest earned on these subscriptions. The
Partnership has invested all of its net offering proceeds in film projects and
at June 30, 1994 had $779,367 in cash. It is not anticipated that the
Partnership will invest in any additional programming projects, but instead
will focus on the distribution of its existing projects.
The Partnership has outstanding amounts receivable from unaffiliated
distributors totalling approximately $370,000 at June 30, 1994. Approximately
$95,000 of this amount will be paid to the Partnership as collected by the
distributors. The Partnership is due to receive approximately $275,000 for the
domestic home video rights for "The Little Kidnappers", of which $75,000 and
$200,000 is due in October 1994 and 1995, respectively.
Liquidity
The Partnership's principal sources of liquidity are the funds
described above and amounts received from exhibition or licensing of its
programming.
During 1990, the Partnership invested approximately $3,200,000 in a
film entitled "The Little Kidnappers." Network presales to The Disney Channel
and the Canadian Broadcasting Corporation totalling approximately $1,365,000
were collected by the Partnership upon delivery. The Partnership received
$200,000 from The Disney Channel and is expected to receive an additional
$100,000 in 1996 for the relicensing of "The Little Kidnappers" to The Disney
Channel for an additional five years beginning January 1, 1994.
In April 1991, the General Partner, on behalf of the Partnership,
entered into a distribution agreement with an unaffiliated party, granting
rights to distribute "The Little Kidnappers" in the non-theatrical domestic
markets. At June 30, 1994, gross sales made under this arrangement totalled
$94,190 of which $23,548 was retained by the distributor for its fees. The
remaining $70,642 has been received by the Partnership. In July 1991, the
General Partner , on behalf of the Partnership, entered into an agreement with
an unaffiliated party that purchased the rights to distribute "The Little
Kidnappers" in the domestic home video market for a period not to exceed five
years. Under this agreement, the Partnership is to receive a guaranteed
minimum of $500,000. The Partnership received $100,000 upon the execution of
the agreement and delivery of the film, which occurred in October 1991. The
Partnership received $50,000 in October 1992, $75,000 in October 1993, and is
scheduled to receive $75,000 and $200,000 in October 1994 and 1995,
respectively.
In the third quarter of 1990, the General Partner, on behalf of the
Partnership, entered into a distribution agreement with an unaffiliated party,
granting rights to distribute "The Little Kidnappers" in foreign television and
foreign home video markets for a period not to exceed ten years. At June 30,
1994, gross sales make under this arrangement totalled $1,104,911, of which
$343,147 was retained by the distributor for its fees and marketing costs. The
remaining $761,764 will be paid to the Partnership as collected by the
distributor. At June 30, 1994, the Partnership had received
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$725,676, of such amount. The remainder will be paid to the Partnership over
the next three to twenty-four months as collected by the distributor. Such
collections by the distributor will generally occur as the film becomes
available for exhibition within the respective territories. The Partnership
plans to recover its remaining investment in this film from revenues in excess
of the foreign television and home video advances described above, as well as
future domestic cable television sales and domestic broadcast syndication.
In April 1991, the General Partner, on behalf on the Partnership,
entered into an agreement with NBC Productions, Inc. for the production of a
full-length made-for-television film entitled "The Story Lady." The total cost
of the film was approximately $4,300,000, and the Partnership has invested its
share of approximately $1,183,000 in return for world-wide distribution rights
to this film, excluding United States and Canadian broadcast television rights.
Included in the total amount invested is a production and overhead fee of
$120,000 paid to the General Partner.
In May 1992, the General Partner, on behalf of the Partnership,
entered into a distribution agreement with an unaffiliated party, granting
rights to distribute "The Story Lady" in the non-theatrical domestic markets.
At June 30, 1994, gross sales made under this arrangement totalled $264,584, of
which $66,146 was retained by the distributor for its fees. The remaining
$198,438 has been received by the Partnership. The General Partner, on behalf
of the Partnership, has entered into an agreement with The Disney Channel,
granting The Disney Channel exclusive domestic television rights to the film
for one year for a license fee of $40,000. This license fee is expected to be
received by the fourth quarter of 1994. In addition, the film will be
distributed in the domestic home video market by the General Partner and a
third party consultant beginning in the second quarter of 1994.
The Partnership has sub-licensed certain international distribution
rights to a distribution affiliate of NBC for approximately eight years, after
which these rights will revert to the Partnership. Distribution revenues from
these markets will be shared according to a formula, depending upon area, gross
receipts, and other factors. At June 30, 1994, gross sales made by this
distributor totalled $1,056,188, of which $279,941 will be retained by the
distributor for its fees and marketing costs, with the remaining $776,247
belonging to the Partnership. At June 30, 1994, the Partnership had received
$717,557 of such amounts. The remaining $58,690 will be paid to the
Partnership over the next three to twenty-four months as collected by the
distributor.
In October 1992, the General Partner, on behalf of the Partnership,
entered into an agreement with Showtime Networks, Inc. ("Showtime") for the
production of a full-length made-for-television film entitled "Curacao." The
total cost of the film was approximately $4,432,000. In addition to the costs
of production, the Partnership paid the General Partner $500,000 as a
production and overhead fee for services rendered in connection with arranging
the Showtime presale and supervising production of this picture.
The Partnership has received license fees and other consideration of
$2,650,000 from Showtime in return for granting Showtime the right to market
domestic pay television rights to the film for 42 months and for the right to
market domestic home video rights for seven years. Home video revenues in
excess of $875,000 will be shared 50/50 between the Partnership and Showtime
until Showtime has received $1,875,000 after which the Partnership will receive
all of the home video revenues.
In May 1993, the General Partner, on behalf of the Partnership,
entered into a distribution agreement with an unaffiliated party, granting
rights to distribute "Curacao" in the non-theatrical domestic markets. At June
30, 1994, gross sales made under this arrangement totalled $92,052, of which
$23,013 was retained by the distributor for its fees. The remaining $69,039
has been received by the Partnership.
The Partnership has recently contracted with an unaffiliated foreign
sales agent to market all other rights worldwide. The General Partner has
approved an agreement negotiated by the foreign sales agent with an
unaffiliated party to market international theatrical and home video rights.
The terms of such agreement provide for an advance payment of $950,000 against
international theatrical and home video revenues in return for the exclusive
rights to distribute the film in the above mediums for 10 years. This
unaffiliated party is entitled to a 35 percent distribution fee on net
theatrical rentals and will pay the Partnership a royalty equal to 30 percent
of home video sales. The net receipts to the Partnership will be reduced by
fees due to the foreign sales agent. At June 30, 1994, the Partnership had
recorded international gross revenues of $960,000, of which $294,763 was
retained by the distribution for its fees and marketing costs, with the
remaining $665,237 belonging to the Partnership. This balance had been
received at June 30, 1994.
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In December 1993, the Partnership declared a distribution of $160,897
which was paid to the partners in February 1994. In March 1994, the
Partnership declared a distribution of $160,897, which was paid to the partners
in May 1994. In June 1994, the Partnership declared a distribution of
$160,897, which will be paid to the partners in August 1994. These
distributions were made using cash on hand, interest income and cash provided
by operating activities. Distributions are expected to continue, although no
determination has been made regarding any specific level of future
distributions.
The General Partner believes that the Partnership has, and will
continue to have, sufficient sources of capital available to conduct its
operations and to meet its obligations during 1994.
RESULTS OF OPERATIONS
Revenues of the Partnership decreased $3,020,701 from $3,166,609 for
the three months ended June 30, 1993 to $145,908 for the three months ended
June 30, 1994. Revenues of the Partnership decreased $3,381,240, from
$3,563,794 for the six months ended June 30, 1993 to $182,554 for the six
months ended June 30, 1994. These decreases were primarily the result of a
decrease in foreign and domestic sales of "The Story Lady" which were $54,540
and $72,240, respectively, for the three and six month periods ended June 30,
1994 as compared to $489,570 and $770,904, respectively, for the same periods
in 1993. International and domestic sales for "The Little Kidnappers"
decreased approximately $18,743 and $115,648, respectively, for the three and
six month periods ended June 30, 1994 compared to the amounts recognized for
the same periods in 1993. Domestic revenues for "Curacao" decreased $2,566,928
for both the three and six month periods ended June 30, due to the recognition
of license fee revenue of $2,650,000 in the second quarter of 1993.
Filmed entertainment costs decreased $2,922,536, from $3,049,257 for
the three months ended June 30, 1993 to $126,721 for the three months ended
June 30, 1994. Filmed entertainment costs decreased $3,214,117, from
$3,385,652 for the six months ended June 30, 1993 to $171,535 for the six
months ended June 30, 1994. These decreases were the result of decreased
revenues as mentioned above. Filmed entertainment costs are amortized over the
life of the film in the ratio that current gross revenues bear to anticipated
total gross revenues.
Distribution fees and expenses decreased $194,879, from $197,356 for
the three months ended June 30, 1993 to $2,477 for the three months ended June
30, 1994. Distribution fees and expenses decreased $315,678, from $355,462 for
the six months ended June 30, 1993 to $39,784 for the six months ended June 30,
1994. These decreases were the result of decreases in domestic and
international sales of the Partnership's programming. These distribution fees
and expenses relate to the compensation due and costs incurred by unaffiliated
parties in selling the Partnership's programming in the international
television and home video markets.
Operating, general and administrative expense decreased $2,201, from
$8,763 for the three months ended June 30, 1993 to $6,562 for the three months
ended June 30, 1994. Operating, general and administrative expense increased
$1,554, from $22,317 for the six months ended June 30, 1993 to $23,871 for the
six months ended June 30, 1994. These changes were primarily the result of the
royalties paid in to the writer of "The Little Kidnappers" totalling $485 and
$13,222, respectively, for the three and six months ended June 30, 1994 as
compared to $4,240 and $10,946,respectively, for the similar periods in 1993.
Interest income increased $3,108, from $1,949 for the three months
ended June 30, 1993 to $5,057 for the three months ended June 30, 1994.
Interest income increased $6,535, from $3,074 for the six months ended June 30,
1993 to $9,609 for the six months ended June 30, 1994. These increases in
interest income were the result of higher average cash balances invested during
1994 as compared to average balances invested in 1993.
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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.
JONES PROGRAMMING PARTNERS 1-A, LTD.
BY: JONES ENTERTAINMENT GROUP, LTD.
General Partner
By: /s/ THEODORE A. HENDERSON
Theodore A. Henderson
Principal Financial and
Accounting Officer
Dated: August 12, 1994
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