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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, 1995.
or
/ / Transition report pursuant to section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from to .
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Commission File Number 0-15378
CABLE TV FUND 14-A, LTD.
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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
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Address of principal executive office
(303) 792-3111
---------------------------------
Registrant's telephone number
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section l3 or l5(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
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CABLE TV FUND 14-A, LTD.
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
June 30, December 31,
ASSETS 1995 1994
------ ------------ ------------
CASH $ 1,407,138 $ 426,979
TRADE RECEIVABLES, less allowance for doubtful receivables
of $88,209 and $74,176 at June 30, 1995 and December 31, 1994,
respectively 966,306 1,070,581
INVESTMENT IN CABLE TELEVISION PROPERTIES:
Property, plant and equipment, at cost 121,294,457 117,434,221
Less- accumulated depreciation (62,459,106) (57,090,363)
----------- -----------
58,835,351 60,343,858
Franchise costs, net of accumulated amortization of $23,918,080 and
$22,417,029 at June 30, 1995 and December 31, 1994, respectively 10,220,582 11,721,633
Subscriber lists, net of accumulated amortization of $8,687,244 and
$8,390,402 at June 30, 1995 and December 31, 1994, respectively 969,106 1,265,948
Costs in excess of interests in net assets purchased, net of accumulated
amortization of $834,602 and $776,420 at June 30, 1995
and December 31, 1994, respectively 5,958,656 6,016,838
Investment in cable television joint venture 5,341,064 5,883,075
----------- -----------
Total investment in cable television properties 81,324,759 85,231,352
DEPOSITS, PREPAID EXPENSES AND DEFERRED CHARGES 740,202 827,434
----------- -----------
Total assets $ 84,438,405 $ 87,556,346
=========== ===========
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
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CABLE TV FUND 14-A, LTD.
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
------------------------------------------- June 30, December 31,
1995 1994
------------ -------------
LIABILITIES:
Debt $ 79,934,365 $ 77,425,047
Accounts payable-
Trade 13,339 165,894
General Partner 338,565 706,579
Accrued liabilities 1,625,238 2,238,657
Subscriber prepayments 134,720 104,845
----------- -----------
Total liabilities 82,046,227 80,641,022
----------- -----------
PARTNERS' CAPITAL (DEFICIT):
General Partner-
Contributed capital 1,000 1,000
Accumulated deficit (663,309) (618,078)
----------- -----------
(662,309) (617,078)
----------- -----------
Limited Partners-
Net contributed capital (160,000 units outstanding at
June 30, 1995 and December 31, 1994) 68,722,000 68,722,000
Accumulated deficit (65,667,513) (61,189,598)
----------- -----------
3,054,487 7,532,402
----------- -----------
Total liabilities and partners' capital (deficit) $ 84,438,405 $ 87,556,346
=========== ===========
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
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CABLE TV FUND 14-A, LTD.
(A Limited Partnership)
UNAUDITED STATEMENTS OF OPERATIONS
For the Three Months Ended For the Six Months Ended
June 30, June 30,
------------------------------------ ----------------------------------
1995 1994 1995 1994
----------- ----------- ----------- -----------
REVENUES $11,013,420 $10,058,002 $21,531,799 $19,776,763
COSTS AND EXPENSES:
Operating expenses 6,091,777 5,883,175 12,620,304 11,789,051
Management fees and allocated
overhead from General Partner 1,273,784 1,247,203 2,608,134 2,497,920
Depreciation and amortization 3,645,980 3,731,322 7,296,069 7,523,869
---------- ---------- ---------- ----------
OPERATING INCOME (LOSS) 1,879 (803,698) (992,708) (2,034,077)
---------- ---------- ---------- ----------
OTHER INCOME (EXPENSE):
Interest expense (1,406,580) (987,653) (2,939,184) (1,864,210)
Other, net (48,386) (99,073) (49,243) (112,759)
---------- ---------- ---------- ----------
Total other income (expense) (1,454,966) (1,086,726) (2,988,427) (1,976,969)
---------- ---------- ---------- ----------
LOSS BEFORE EQUITY IN NET
LOSS OF CABLE TELEVISION
JOINT VENTURE (1,453,087) (1,890,424) (3,981,135) (4,011,046)
EQUITY IN NET LOSS OF CABLE
TELEVISION JOINT VENTURE (357,483) (350,075) (542,011) (656,796)
---------- ---------- ---------- ----------
NET LOSS $(1,810,570) $(2,240,499) $(4,523,146) $(4,667,842)
========== ========== ========== ==========
ALLOCATION OF NET LOSS:
General Partner $ (18,106) $ (22,405) $ (45,231) $ (46,678)
========== ========== ========== ==========
Limited Partners $(1,792,464) $(2,218,094) $(4,477,915) $(4,621,164)
========== ========== ========== ==========
NET LOSS PER LIMITED
PARTNERSHIP UNIT $ (11.20) $ (13.86) $ (27.99) $ (28.88)
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER
OF LIMITED PARTNERSHIP
UNITS OUTSTANDING 160,000 160,000 160,000 160,000
========== ========== ========== ==========
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
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CABLE TV FUND 14-A, LTD.
(A Limited Partnership)
UNAUDITED STATEMENTS OF CASH FLOWS
For the Six Months Ended
June 30,
-------------------------------------
1995 1994
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(4,523,146) $(4,667,842)
Adjustments to reconcile net loss to net cash provided by
operating activities:
Depreciation and amortization 7,296,069 7,523,869
Equity in net loss of cable television joint venture 542,011 656,796
Amortization of interest rate protection contract 8,334 8,334
Increase (decrease) in advances from General Partner (368,014) 778,553
Decrease in trade receivables 104,275 88,733
Decrease (increase) in deposits, prepaid expenses and
other assets 7,647 (94,874)
Decrease in trade accounts payable, accrued liabilities
and subscriber prepayments (736,099) (248,316)
---------- ----------
Net cash provided by operating activities 2,331,077 4,045,253
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CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (3,860,236) (2,883,020)
---------- ----------
Net cash used in investing activities (3,860,236) (2,883,020)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings 2,625,316 40,912
Repayment of debt (115,998) (1,405,433)
---------- ----------
Net cash provided by (used in) financing
activities 2,509,318 (1,364,521)
---------- ----------
Increase (decrease) in cash 980,159 (202,288)
Cash, beginning of period 426,979 476,782
---------- ----------
Cash, end of period $ 1,407,138 $ 274,494
========== ==========
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ 3,159,891 $ 1,829,528
========== ==========
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
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CABLE TV FUND 14-A, 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 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, Ltd. (the "Partnership") at June 30, 1995 and December
31, 1994 and its Statements of Operations for the three and six month
periods ended June 30, 1995 and 1994, and its Statements of Cash Flows for
the six month periods ended June 30, 1995 and 1994. 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 and six month periods ended June 30, 1995
(excluding the Partnership's interest in the Venture) were $550,671 and
$1,076,590, respectively, as compared to $502,900 and $988,838,
respectively, for the similar 1994 periods.
The Partnership reimburses the General Partner for certain allocated
overhead and administrative expenses. These expenses represent salaries
and related benefits paid to corporate personnel, rent, data processing
services and other corporate related facilities costs. Such personnel
provide engineering, marketing, administrative, 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 expenses are
allocated based on the pro rata relationship of the Partnership's revenues
to the total revenues of all systems owned or managed by the General
Partner and certain of its subsidiaries. Systems owned by the General
Partner and all other systems owned by partnerships for which Jones
Intercable, Inc. is the general partner are also allocated a proportionate
share of these expenses. The General Partner believes that the methodology
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 and six month periods
ended June 30, 1995 (excluding the Partnership's interest in the Venture)
were $723,113 and $1,531,544, respectively, as compared to $744,303 and
$1,509,082, respectively, for the similar 1994 periods.
(3) Certain prior year amounts have been reclassified to conform to the
1995 presentation.
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(4) Financial information regarding the Venture is presented below:
UNAUDITED BALANCE SHEETS
ASSETS June 30, 1995 December 31, 1994
------ ------------- -----------------
Cash and accounts receivable $ 1,009,519 $ 856,159
Investment in cable television
properties 63,202,202 65,314,914
Other assets 371,632 426,387
----------- -----------
Total assets $ 64,583,353 $ 66,597,460
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
Debt $ 41,111,748 $ 42,271,921
Payables and accrued liabilities 3,407,683 2,261,576
Partners' contributed capital 70,000,000 70,000,000
Accumulated deficit (49,936,078) (47,936,037)
----------- -----------
Total liabilities and
partners' capital $ 64,583,353 $ 66,597,460
=========== ===========
UNAUDITED STATEMENTS OF OPERATIONS
For the Three Months Ended For the Six Months Ended
June 30, June 30,
---------------------------- ---------------------------
1995 1994 1995 1994
----------- ----------- ----------- -----------
Revenues $ 5,767,265 $ 5,478,181 $11,693,152 $10,973,921
Operating expenses (3,165,205) (3,136,788) (6,435,781) (6,197,201)
Management fees and
allocated overhead
to General Partner (673,011) (674,876) (1,411,596) (1,363,167)
Depreciation and
amortization (2,349,922) (2,286,350) (4,096,103) (4,590,370)
---------- ---------- ---------- ----------
Operating loss (420,873) (619,833) (250,328) (1,176,817)
Interest expense (899,365) (639,272) (1,752,085) (1,215,522)
Other, net 1,113 32,687) 2,372 (31,264)
---------- ---------- ---------- ----------
Net loss $(1,319,125) $(1,291,792) $(2,000,041) $(2,423,603)
========== ========== ========== ==========
Management fees paid to Jones Intercable, Inc. by the Venture totaled
$288,364 and $584,658, respectively, for the three and six month periods
ended June 30, 1995, as compared to $273,909 and $548,696, respectively,
for the similar 1994 periods. Reimbursements for overhead and
administrative expenses paid to Jones Intercable, Inc. by the Venture
totaled $384,647 and $826,938, respectively, for the three and six month
periods ended June 30, 1995, as compared to $400,967 and $814,471 for the
similar 1994 periods. Management fees paid by the Venture and attributable
to the Partnership totaled $78,147 and $158,442, respectively, for the
three and six months ended June 30, 1995, as compared to $74,249 and
$148,697, respectively, for the similar 1994 periods. Reimbursements paid
by the Venture and attributable to
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the Partnership totaled $104,239 and $224,100, respectively, for the three
and six months ended June 30, 1995, as compared to $108,662 and $220,722,
respectively, for the similar 1994 periods.
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CABLE TV FUND 14-A, LTD.
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FINANCIAL CONDITION
The Partnership
For the six months ended June 30, 1995, the Partnership generated net
cash from operating activities totaling $2,331,077, which is available to
fund capital expenditures and non-operating costs. Capital expenditures
totaled approximately $3,860,000 during the first six months of 1995.
Approximately 34 percent of the expenditures related to new plant
construction in all of the Partnership's systems. Approximately 26 percent
of the expenditures related to construction of service drops to
subscriber's homes. The remainder of the expenditures was for various
enhancements in all of the Partnership's systems. These expenditures were
funded by cash generated from operations and borrowings under the
Partnership's revolving credit facility. Capital expenditures for the
remainder of 1995 are approximately $5,748,000. Approximately 46 percent
of the expenditures is for new plant construction. Approximately 19
percent is for construction of service drops to subscribers' homes.
Funding for improvements is expected to come from cash on hand, cash
generated from operations, borrowings under the Partnership's revolving
credit facility and, in its discretion, advances from the General Partner.
During July 1994, the Partnership entered into an $80,000,000
revolving credit facility. The revolving credit facility converts to a
term loan on September 30, 1996, at which time the then-outstanding balance
is payable in quarterly installments through March 31, 2002. At June 30,
1995, $79,500,000 was outstanding under this agreement, leaving $500,000
available for future needs of the Partnership. Interest on the outstanding
principal balance is at the Partnership's option of the Prime rate plus 1/2
percent or a fixed rate defined as the Certificate of Deposit rate plus 1-
5/8 percent or the London Interbank Offered Rate ("LIBOR") plus 1-1/2
percent. A fee of 3/8 of one percent per annum on the unused portion of
the new commitment is also paid. The effective interest rates on amounts
outstanding as of June 30, 1995 and 1994 were 7.68 percent and 5.64
percent, respectively.
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 for this coverage. The agreement
protects the Partnership from LIBOR 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.
The Partnership has sufficient liquidity and capital resources,
including cash on hand, cash generated from operations, borrowings under
the Partnership's revolving credit facility and, in its discretion,
advances from the General Partner, to meet its anticipated needs.
The Venture
In addition to those systems owned exclusively by the Partnership, Cable TV
Fund 14-A, Ltd. 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 $553,656 compared to the December 31, 1994 balance. This
decrease represents the Partnership's proportionate share of losses
generated by the Venture for the first six months of 1995. These losses
are anticipated to continue.
For the six months ended June 30, 1995, the Venture generated net cash
from operating activities totaling $3,209,430, which is available to fund
capital expenditures and non-operating costs. During the first six months
of 1995, capital expenditures in the Venture-owned Broward County System
totaled approximately $1,900,000. Approximately 30 percent of these
expenditures related to new plant construction. Approximately 23 percent
of these expenditures related to service drops to homes. Rebuild of the
cable plant accounted for approximately 12 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 1995 are approximately $1,300,000. Approximately 30 percent
will relate to service drops to homes. Approximately 26 percent will
relate to new plant construction. Approximately 14 percent will relate to
plant rebuilds in the Broward County
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System. The remainder of the anticipated expenditures is for various
enhancements in the Broward County System. These capital expenditures are
expected to be funded from cash on hand and cash generated from operations.
The balance outstanding on the Venture's term loan at June 30, 1995
was $40,950,468. The term loan is payable in quarterly installments which
began March 31, 1993 and is payable in full by December 31, 1999. In June
1994, the General Partner completed negotiations to lower the level of
principal payments in order to provide liquidity for capital expenditures.
The Venture paid $585,000 in principal installments during the second
quarter and a total of $1,170,000 during the six months ended June 30,
1995. Installments due during the remainder of 1995 total $1,170,000.
Funding for these installments is expected to come from cash on hand and
cash generated from operations. 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 June
30, 1995 and 1994 were 7.64 percent and 6.0 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
LIBOR interest rates that exceeded 7 percent for three years from the date
of the agreement.
The General Partner believes that the Venture has sufficient sources
of capital to service its presently anticipated needs from cash on hand and
cash generated from operations.
RESULTS OF OPERATIONS
The Partnership
Revenues of the Partnership totaled $11,013,420 for the three month
period ended June 30, 1995 as compared to $10,058,002 for the comparable
1994 period, an increase of $955,418, or approximately 9 percent. Revenues
totaled $21,531,799 for the six months ended June 30, 1995 as compared to
$19,776,763 for the comparable 1994 period, an increase of $1,755,036, or
approximately 9 percent. An increase in the subscriber base accounted for
approximately 51 percent and 54 percent, respectively, of the increase for
the three and six month periods ended June 30, 1995. The number of basic
subscribers increased 7,597, or approximately 8 percent, to 101,546 at June
30, 1995 from 93,949 at June 30, 1994. Premium service subscriptions
increased 3,603, or approximately 4 percent, to 88,022 at June 30, 1995
from 84,419 at June 30, 1994. An increase in advertising sales revenue
accounted for approximately 22 percent and 23 percent, respectively, of the
increase for the three and six month periods ended June 30, 1995. Rate
increases during the first quarter of 1995 resulted in approximately 22
percent and 17 percent, respectively, of the increase in revenues for the
three and six month periods. No other individual factor was significant to
the increase in revenues.
Operating expenses consist primarily of costs associated with the
administration of the Partnership's cable television systems. The
principal cost components are salaries paid to system personnel,
programming expenses, professional fees, subscriber billing costs, rent for
leased facilities, cable system maintenance expenses and consumer marketing
expenses.
Operating expenses totaled $6,091,777 for the three month period ended
June 30, 1995 as compared to $5,883,175 for the comparable 1994 period, an
increase of $208,602, or approximately 4 percent. Operating expenses
totaled $12,620,304 for the six months ended June 30, 1995 as compared to
$11,789,051 for the comparable 1994 period, an increase of $831,253, or
approximately 7 percent. Operating expenses represented 55 percent and 59
percent, respectively, of revenues for the three and six month periods of
1995 compared to 58 percent and 60 percent, respectively, for the
comparable 1994 periods. Increases in programming fees primarily accounted
for the increase for the three and six months periods. The increases in
programming fees were due, in part, to increases in the basic subscriber
base. No other individual factor was significant to the increases in
operating expenses.
Management fees and allocated overhead from the General Partner
totaled $1,273,784 for the three month period ended June 30, 1995 as
compared to $1,247,203 for the comparable 1994 period, an increase of
$26,581, or approximately 2 percent. The increase for the three month
period was due to the increase in revenues, upon which such fees and
allocations are based, which were partially offset by a decrease in
allocated expenses from the General Partner. Management fees and allocated
overhead from the General Partner totaled $2,608,134 for the six month
period ended June 30, 1995 as compared to $2,497,920 for the comparable
1994 period, an increase of $110,214, or approximately 4
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percent. The increase for the six month period was due to the increase in
revenues, upon which such fees and allocations are based.
Depreciation and amortization expense totaled $3,645,980 for the three
month period ended June 30, 1995 as compared to $3,731,322 for the
comparable 1994 period, a decrease of $85,342, or approximately 2 percent.
Depreciation and amortization expense totaled $7,296,069 for the six months
ended June 30, 1995 as compared to $7,523,869 for the comparable 1994
period, a decrease of $227,800, or approximately 3 percent. The decreases
are primarily due to the maturation of a portion of the intangible asset
base.
The Partnership recognized operating income of $1,879 for the three
month period ended June 30, 1995 as compared to an operating loss of
$803,698 for the comparable 1994 period. Operating loss totaled $992,708
for the six month period ended June 30, 1995 as compared to $2,034,077 for
the comparable 1994 period, a decrease of $1,041,369, or approximately 51
percent. These decreases were due to the increases in revenues exceeding
the increases in operating expenses and management fees and allocated
overhead from the General Partner and the decreases in depreciation and
amortization expense.
Operating income before depreciation and amortization totaled
$3,647,859 for the three months ended June 30, 1995 as compared to
$2,927,624 for the comparable 1994 period, an increase of $720,235, or
approximately 25 percent. Operating income before depreciation and
amortization totaled $6,303,361 for the six month period ended June 30,
1995 as compared to $5,489,792 for the comparable 1994 period, an increase
of $813,569, or approximately 15 percent. The increases for the three and
six month periods were due to the increases in revenues exceeding the
increases in operating expenses and management fees and allocated overhead
from the General Partner.
Interest expense totaled $1,406,580 for the three month period ended
June 30, 1995 as compared to $987,653 for the comparable 1994 period, an
increase of $418,927, or approximately 42 percent. Interest expense
totaled $2,939,184 for the six months ended June 30, 1995 as compared to
$1,864,210 for the comparable 1994 period, an increase of $1,074,974, or
approximately 58 percent. The increases for the three and six month
periods were due primarily to higher outstanding balances on interest
bearing obligations and higher effective interest rates. Loss before
equity in net loss of cable television joint venture totaled $1,453,087 for
the three month period ended June 30, 1995 as compared to $1,890,424 for
the comparable 1994 period, a decrease of $437,337, or approximately 23
percent. Loss before equity in net loss of cable television joint venture
totaled $3,981,135 for the six month period ended June 30, 1995 as compared
to $4,011,046 for the comparable 1994 period, a decrease of $29,911, or
less than 1 percent. The decreases for the three and six month periods
were primarily due to the decreases in operating loss.
The Venture
In addition to the systems owned exclusively, by the Partnership,
Cable TV Fund 14-A, Ltd. owns an approximate 27 percent interest in the
Venture.
The Venture's revenues increased $289,084, or approximately 5 percent,
to $5,767,265 for the three months ended June 30, 1995 from $5,478,181 for
the three months ended June 30, 1994. Revenues for the six month periods
ended June 30, 1995 and 1994 increased $719,231, or approximately 7
percent, to $11,693,152 in 1995 from $10,973,921 in 1994. The increase in
revenues was due to increases in the number of basic subscribers and
premium subscriptions and advertising sales revenues. Basic subscribers
increased approximately 5 percent to 47,554 at June 30, 1995 from 45,324 at
June 30, 1994. Premium subscriptions increased approximately 7 percent to
41,400 at June 30, 1995 from 38,691 at June 30, 1994. No other individual
factor was significant to the increase in revenues.
Operating expenses consist primarily of costs associated with the
administration of the Venture's cable television systems. The principal
cost components are salaries paid to system personnel, programming
expenses, professional fees, subscriber billing costs, rent for leased
facilities, cable system maintenance expenses and consumer marketing
expenses.
Operating expenses increased $28,417, or approximately 1 percent, to
$3,165,205 for the three months ended June 30, 1995 from $3,136,788 for the
three months ended June 30, 1994. For the six month periods ended June 30,
1995 and 1994, operating expenses increased $238,580, or approximately 4
percent, to $6,435,781 at June 30, 1995 from $6,197,201 at June 30, 1994.
Operating expenses represented 55 percent of revenue for both the three and
six months ended June 30, 1995 compared to 57 percent of revenue for both
the three and six months ended June 30, 1994. The increases in
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operating expenses were due primarily to increases in programming fees. No
other individual factor was significant to the increase in operating
expenses.
Management fees and allocated overhead from the General Partner
decreased $1,865, or less than 1 percent, to $673,011 for the three months
ended June 30, 1995 from $674,876 for the three months ended June 30, 1994
due to a decrease in allocated expenses from the General Partner. For the
six month periods ended June 30, 1995 and 1994, management fees and
allocated overhead from the General Partner increased $48,429, or
approximately 3 percent, to $1,411,596 at June 30, 1995 from $1,363,167 at
June 30, 1994. This increase was due to the increase in revenues, upon
which such fees and allocations are based.
Depreciation and amortization expense increased $63,572, or
approximately 3 percent, to $2,349,922 for the three months ended June 30,
1995 from $2,286,350 for the three months ended June 30, 1994 due to
capital additions during 1995. For the six month periods ended June 30,
1995 and 1994, depreciation and amortization expense decreased $494,267, or
approximately 11 percent, to $4,096,103 at June 30, 1995 from $4,590,370 at
June 30, 1994. This decrease was due to the maturation of the Venture's
intangible asset base.
In the Broward County System, operating loss decreased $198,960, or
approximately 32 percent, to $420,873 for the three month period ended June
30, 1995 from $619,833 for the comparable period in 1994. This operating
loss decrease was due to the increase in revenues exceeding the increases
in depreciation and amortization expense, operating expenses and management
fees and allocated overhead from the General Partner. For the six months
ended June 30, 1995 and 1994, operating loss decreased $926,489, or
approximately 79 percent, to $250,328 at June 30, 1995 from $1,176,817 at
June 30, 1994. This decrease in operating loss was due to the increase in
revenues and decrease in depreciation and amortization expense exceeding
the increases in operating expenses and management fees and allocated
overhead from the General Partner. Operating income before depreciation
and amortization increased $262,532, or approximately 16 percent, to
$1,929,049 for the three months ended June 30, 1995 from $1,666,517 for the
three months ended June 30, 1994. For the six month periods ended June 30,
1995 and 1994, operating income before depreciation and amortization
increased $432,222, or approximately 13 percent, to $3,845,775 at June 30,
1995 from $3,413,553 at June 30, 1994. This increase was due to the
increase in revenues exceeding the increases in operating expenses and
management fees and allocated overhead from the General Partner.
Interest expense increased $260,093, or approximately 41 percent, to
$899,365 for the three months ended June 30, 1995 from $639,272 for the
three months ended June 30, 1994. For the six month periods ended June 30,
1995 and 1994 interest expense increased $536,563, or approximately 44
percent, to $1,752,085 at June 30, 1995 from $1,215,522 at June 30, 1994.
These increases were primarily due to higher effective interest rates on
interest bearing obligations. Net loss of the Venture increased $27,333,
or approximately 2 percent, to $1,319,125 for the three months ended June
30, 1995 from $1,291,792 for the three months ended June 30, 1994. For the
six month periods ended June 30, 1995 and 1994, net loss decreased
$423,562, or approximately 17 percent, to $2,000,041 at June 30, 1995 from
$2,423,603 at June 30, 1994. These losses are the result of the factors
discussed above and are expected to continue in the future.
12
13
Part II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
a) Exhibits
27) Financial Data Schedule
b) Reports on Form 8-K
None
13
14
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, LTD.
BY: JONES INTERCABLE, INC.
General Partner
By: /S/ Kevin P. Coyle
------------------------------
Kevin P. Coyle
Group Vice President/Finance
(Principal Financial Officer)
Dated: August 11, 1995
14
15
EXHIBIT INDEX
Exhibit No. Exhibit Description Page
- ----------- ------------------- ----
27 Financial Data Schedule