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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
[ ] 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: 0-13171
CABLE TV FUND 11-D, LTD.
Exact name of registrant as specified in charter
Colorado 84-0917842
State of organization I.R.S. employer I.D. #
9697 East Mineral Avenue, P.O. Box 3309, Englewood, Colorado 80155-3309
Address of principal executive office
(303) 792-3111
Registrant's telephone number
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No ____
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CABLE TV FUND 11-D, LTD.
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
June 30, December 31,
ASSETS 1995 1994
------ ------------ ------------
INVESTMENT IN CABLE TELEVISION JOINT VENTURE: $ 2,565,964 $ 2,499,225
============ ============
PARTNERS' CAPITAL (DEFICIT)
---------------------------
PARTNERS' CAPITAL (DEFICIT):
General Partner-
Contributed capital $ 1,000 $ 1,000
Distributions (8,005,517) (8,005,517)
Accumulated earnings 7,828,274 7,827,607
------------ ------------
(176,243) (176,910)
------------ ------------
Limited Partners-
Net contributed capital (50,000 units outstanding
at June 30, 1995 and December 31, 1994) 21,598,038 21,598,038
Distributions (49,016,548) (49,016,548)
Accumulated earnings 30,160,717 30,094,645
------------ ------------
2,742,207 2,676,135
------------ ------------
Total partners' capital (deficit) $ 2,565,964 $ 2,499,225
============ ============
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
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CABLE TV FUND 11-D, 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
------- ------- ------- -------
EQUITY IN NET INCOME
OF CABLE TELEVISION
JOINT VENTURE $44,947 $42,864 $66,739 $90,170
------- ------- ------- -------
NET INCOME $44,947 $42,864 $66,739 $90,170
======= ======= ======= =======
ALLOCATION OF NET INCOME:
General Partner $ 449 $ 429 $ 667 $ 902
======= ======= ======= =======
Limited Partners $44,498 $42,435 $66,072 $89,268
======= ======= ======= =======
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ .89 $ .85 $ 1.32 $ 1 .79
======= ======= ======= =======
WEIGHTED AVERAGE NUMBER
OF LIMITED PARTNERSHIP
UNITS OUTSTANDING 50,000 50,000 50,000 50,000
======= ======= ======= =======
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
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CABLE TV FUND 11-D, LTD.
(A Limited Partnership)
UNAUDITED STATEMENTS OF CASH FLOWS
For the Six Months Ended
June 30,
-------------------------
1995 1994
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 66,739 $ 90,170
Adjustments to reconcile net income to
net cash provided by operating activities:
Equity in net income of cable television
joint venture (66,739) (90,170)
-------- --------
Net cash provided by operating activities -- --
-------- --------
Cash, beginning of period -- --
-------- --------
Cash, end of period $ -- $ --
======== ========
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ -- $ --
======== ========
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
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CABLE TV FUND 11-D, 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 11-D, 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.
(2) Jones Intercable, Inc. (the "General Partner"), a publicly
held Colorado corporation, manages the Partnership and Cable TV Joint Fund 11
(the "Venture"), in which the Partnership holds an approximate 47 percent
interest, and receives a fee for its services equal to 5 percent of the gross
revenues of the Venture, excluding revenues from the sale of cable television
systems or franchises. The Partnership owns no properties directly, and it
holds an interest in a cable television system only through its investment in
the Venture. Management fees paid by the Venture and attributable to the
Partnership for the three and six month periods ended June 30, 1995 (reflecting
the Partnership's approximate 47 percent interest in the Venture) were $21,116
and $41,132, respectively, as compared to $19,307 and $38,325, respectively,
for the similar 1994 periods.
The Venture 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 facilities costs. Such personnel provide
engineering, marketing, administrative, accounting, legal and investor
relations services to the Venture. Allocations of personnel costs are
primarily based 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 to the General Partner paid by the
Venture and attributable to the Partnership for allocated overhead and
administrative expenses for the three and six month periods ending June 30,
1995 (reflecting the Partnership's approximate 47 percent interest in the
Venture) were $29,434 and $63,962, respectively, as compared to $31,018 and
$63,394, respectively, for the similar 1994 periods.
(3) The Manitowoc, Wisconsin system (the "Manitowoc System") was submitted
for public bid in the second quarter of 1995. The bidding closed on July 7,
1995, with the General Partner tendering the only bid. The price bid by the
General Partner was $15,735,667, which reflects the average of three separate,
independent appraisals of the fair market value of the Manitowoc System. The
General Partner's bid for the Manitowoc System has been accepted, and a
purchase and sale agreement is being negotiated. Closing of the sale is
subject to (i) the negotiation of a definitive purchase and sale agreement,
(ii) approval by the holders of a majority of the limited partnership interests
in each of the four partnerships that comprise the Venture in votes to be
conducted in the autumn of 1995 and (iii) the successful renewal and transfer
of the system's franchise.
The franchise renewal negotiations are continuing, and the General
Partner expects that negotiations will be completed in 1995. The city has
agreed that the term of the renewal franchise will be 12 years and that the
applicable franchise fee will be 5 percent. The Venture paid the city
$1,850,000, which will be returned to the Venture, with interest, in the event
that the city does not renew the franchise. If the franchise is renewed, the
$1,850,000 will be accounted for as franchise costs.
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(4) Financial information regarding the Venture is presented below.
UNAUDITED BALANCE SHEETS
June 30, December 31,
ASSETS 1995 1994
------ ------------- -------------
Cash and accounts receivable $ 2,578,004 $ 2,521,713
Investment in cable television properties 2,612,053 2,724,042
Other assets 1,901,490 1,853,355
------------- -------------
Total assets $ 7,091,547 $ 7,099,110
============= =============
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
Debt $ 15,823 $ 26,385
Payables and accrued liabilities 335,548 474,880
Partners' contributed capital 45,000,000 45,000,000
Distributions (118,914,493) (118,914,493)
Accumulated earnings 80,654,669 80,512,338
------------- -------------
Total liabilities and partners' capital $ 7,091,547 $ 7,099,110
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UNAUDITED STATEMENTS OF OPERATIONS
For the Three Months Ended For the Six Months Ended
June 30, June 30,
-------------------------- ---------------------------
1995 1994 1995 1994
--------- --------- ----------- ----------
Revenues $ 900,622 $ 823,499 $ 1,754,350 $1,634,657
Operating expenses (590,962) (501,203) (1,174,698) (982,690)
Management fees and allocated overhead from
Jones Intercable, Inc. (107,805) (107,325) (224,127) (216,930)
Depreciation and amortization (139,564) (129,566) (279,129) (260,056)
--------- --------- ----------- ----------
Operating income 62,291 85,405 76,396 174,981
Interest expense (2,417) (6,169) (8,701) (10,466)
Interest income 35,775 20,087 73,821 35,562
Other, net 208 (7,909) 815 (7,776)
--------- --------- ----------- ----------
Net income $ 95,857 $ 91,414 $ 142,331 $ 192,301
========= ========= =========== ==========
Management fees paid to Jones Intercable, Inc. by the Venture totaled
$45,032 and $87,718 for the three and six months ended June 30, 1995,
respectively, and $41,475 and $81,733 for the three and six month periods ended
June 30, 1994, respectively. Reimbursements for overhead and administrative
expenses paid to Jones Intercable, Inc. by the Venture totaled $62,773 and
$136,409 for the three and six month periods ended June 30, 1995, respectively,
and $66,150 and $135,197 for the three and six month periods ended June 30,
1994, respectively.
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CABLE TV FUND 11-D, LTD.
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FINANCIAL CONDITION
The Partnership owns an approximate 47 percent interest in Cable TV
Joint Fund 11 (the "Venture"). The investment in this cable television joint
venture is accounted for under the equity method. When compared to the
December 31, 1994 balance, this investment has increased by $66,739, from
$2,499,225 at December 31, 1994 to $2,565,964 at June 30, 1995. This increase
represents the Partnership's proportionate share of net income generated by the
Venture during the first six months of 1995.
The Manitowoc System was submitted for public bid in the second
quarter of 1995. The bidding closed on July 7, 1995, with the General Partner
tendering the only bid. The price bid by the General Partner was $15,735,667,
which reflects the average of three separate, independent appraisals of the
fair market value of the Manitowoc System. The General Partner's bid for the
Manitowoc System has been accepted, and a purchase and sale agreement is being
negotiated. Closing of the sale is subject to (i) the negotiation of a
definitive purchase and sale agreement, (ii) approval by the holders of a
majority of the limited partnership interests in each of the four partnerships
that comprise the Venture in votes to be conducted in the autumn of 1995 and
(iii) the successful renewal and transfer of the system's franchise.
The franchise renewal negotiations are continuing, and the General
Partner expects that negotiations will be completed in 1995. The city has
agreed that the term of the renewal franchise will be 12 years and that the
applicable franchise fee will be 5 percent. The Venture paid the city
$1,850,000, which will be returned to the Venture, with interest, in the event
that the city does not renew the franchise. If the franchise is renewed, the
$1,850,000 will be accounted for as franchise costs.
For the six months ended June 30, 1995, the Venture generated operating
income before depreciation and amortization of $355,525 and incurred interest
expense totaling $8,701, leaving $346,824 to fund capital expenditures and
non-operating costs. During the first six months of 1995, the Venture expended
approximately $140,000 for capital additions in the Manitowoc System. These
capital additions were for various enhancements to maintain the value of the
system and were funded from cash generated from operations. Anticipated
capital expenditures for the remainder of 1995 are approximately $133,000.
These expenditures will be for various enhancements to maintain the value of
the system. It is expected that these capital expenditures will be funded from
cash on hand and cash generated from operations.
The Venture had no bank debt outstanding at June 30, 1995.
The Venture has sufficient liquidity and capital resources, including
cash on hand and its ability to generate cash from operations, to meet its
anticipated needs.
RESULTS OF OPERATIONS
All of the Partnership's operations are generated through its
approximate 47 percent interest in the Venture. Revenues of the Venture
totaled $900,622 for the three month period ended June 30, 1995 as compared to
$823,499 for the comparable 1994 period, an increase of $77,123, or
approximately 9 percent. Revenues of the Venture totaled $1,754,350 for the six
months ended June 30, 1995 as compared to $1,634,657 for the comparable 1994
period, an increase of $119,693, or approximately 7 percent. An increase in
the subscriber base primarily accounted for the increase in revenues for the
three and six month periods ended June 30, 1995. The number of basic
subscribers increased 1,000, or approximately 10 percent, from 10,123 at June
30, 1994 to 11,123 at June 30, 1995. The number of premium subscribers
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increased 1,734, or approximately 31 percent, from 5,537 at June 30,
1994 to 7,271 at June 30, 1995. No other individual factor contributed
significantly 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 in the Manitowoc system totaled $590,962 for the
three month period ended June 30, 1995 as compared to $501,203 for the
comparable 1994 period, an increase of $89,759, or approximately 18 percent.
Operating expenses in the Manitowoc system totaled $1,174,698 for the six
months ended June 30, 1995 as compared to $982,690 for the comparable 1994
period, an increase of $192,008, or approximately 20 percent. Operating
expenses represented 66 percent and 67 percent, respectively, of revenues for
the three and six months periods of 1995 and 61 percent and 60 percent,
respectively, for the comparable 1994 periods. The increases in operating
expenses for the three and six month periods were due to increases in
programming fees, which were due, in part, to the increase in the subscriber
base and increases in property taxes. No other individual factor significantly
affected the increases in operating expenses.
Management fees and allocated overhead from the General Partner totaled
$107,805 for the three month period ended June 30, 1995 as compared to $107,325
for the comparable 1994 period, an increase of $480, or less than 1 percent.
Management fees and allocated overhead from the General Partner totaled
$224,127 for the six months ended June 30, 1995 as compared to $216,930 for the
comparable 1994 period, an increase of $7,197, or approximately 3 percent. The
increases for the three and six month periods were due to the increase in
revenues, upon which such fees and allocations are based.
Depreciation and amortization expense totaled $139,564 for the three
month period ended June 30, 1995 as compared to $129,566 for the comparable
1994 period, an increase of $9,998, or approximately 8 percent. Depreciation
and amortization expense totaled $279,129 for the six months ended June 30,
1995 as compared to $260,056 for the comparable 1994 period, an increase of
$19,073, or approximately 7 percent. The increases for the three and six month
periods were due to capital additions in 1994.
Operating income totaled $62,291 for the three month period ended June
30, 1995 as compared to $85,405 for the comparable 1994 period, a decrease of
$23,114, or approximately 27 percent. Operating income totaled $76,396 for the
six months ended June 30, 1995 as compared to $174,981 for the comparable 1994
period, a decrease of $98,585, or approximately 56 percent. The decreases for
the three and six month periods were due to the increases in operating
expenses, management fees and allocated overhead from the General Partner and
depreciation and amortization expense exceeding the increases in revenues.
Operating income before depreciation and amortization totaled $201,855 for the
three month period ended June 30, 1995 as compared to $214,971 for the
comparable 1994 period, a decrease of $13,116, or approximately 6 percent.
Operating income before depreciation and amortization totaled $355,525 for the
six months ended June 30, 1995 as compared to $435,037 for the comparable 1994
period, a decrease of $79,512, or approximately 18 percent. The decreases for
both periods were due to the increases in operating expenses and management
fees and allocated overhead from the General Partner exceeding the increase in
revenues.
Interest expense for the Venture totaled $2,417 for the three month
period ended June 30, 1995 as compared to $6,169 for the comparable 1994
period, a decrease of $3,752, or approximately 61 percent. Interest expense
for the Venture totaled $8,701 for the six months ended June 30, 1995 as
compared to $10,466 for the comparable 1994 period, a decrease of $1,765, or
approximately 17 percent. The decreases for the three and six month periods
were due to lower outstanding balances on capital lease obligations. Net
income of the Venture totaled $95,857 for the three month period ended June 30,
1995 as compared to $91,414 for the comparable 1994 period, an increase of
$4,443, or approximately 5 percent. The increase was due to the decrease in
interest expense. Net income of the Venture totaled $142,331 for the six
months ended June 30, 1995 as compared to $192,301 for the comparable 1994
period, a decrease of $49,970, or approximately 26 percent. The decrease was
due primarily to the decrease in operating income.
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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
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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 11-D, LTD.
BY: JONES INTERCABLE, INC.
General Partner
By: /S/ Kevin P. Coyle
-----------------------------
Kevin P. Coyle
Group Vice President/Finance
(Principal Financial Officer)
Dated: August 14, 1995
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EXHIBIT INDEX
Exhibit No. Exhibit Description Page
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27 Financial Data Schedule