UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2002
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: 0-13964
CABLE TV FUND 12-C, LTD.
(Exact name of registrant as specified in its charter)
Colorado 84-0970000
- --------------------------------------- -----------------------------------
State of organization (IRS Employer Identification No.)
c/o Comcast Corporation
1500 Market Street,
Philadelphia, PA 19102-2148 (215) 665-1700
- --------------------------------------- -----------------------------------
(Address of principal executive office (Registrant's telephone no.
and Zip Code) including area code)
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:
Limited Partnership Interests
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
registrants were required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days:
Yes X No
----- ------
Aggregate market value of the voting stock held by non-affiliates of the
registrant: [Not Applicable]
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (ss.229.405) is not contained herein, and will not be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K. [X]
DOCUMENTS INCORPORATED BY REFERENCE: None
CABLE TV FUND 12-C, LTD.
2002 FORM 10-K ANNUAL REPORT
TABLE OF CONTENTS
PART I
Item 1 Business................................................................................ 1
Item 2 Properties.............................................................................. 1
Item 3 Legal Proceedings....................................................................... 1
Item 4 Submission of Matters to a Vote of Security Holders..................................... 3
PART II
Item 5 Market for the Registrant's Common Stock and Related Security Holder Matters............ 3
Item 6 Selected Financial Data................................................................. 4
Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations... 4
Item 8 Financial Statements.................................................................... 5
Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.... 17
PART III
Item 10 Directors and Executive Officers of the Registrant...................................... 17
Item 11 Executive Compensation.................................................................. 17
Item 12 Security Ownership of Certain Beneficial Owners and Managers............................ 17
Item 13 Certain Relationships and Related Transactions.......................................... 18
Item 14 Controls and Procedures................................................................. 18
Item 15 Exhibits, Financial Statement Schedules and Reports on Form 8-K......................... 18
SIGNATURES........................................................................................ 19
CERTIFICATIONS.................................................................................... 20
This Annual Report on Form 10-K is for the year ended December 31, 2002.
This Annual Report modifies and supersedes documents filed prior to the filing
of this Annual Report. The Securities and Exchange Commission (the "SEC") allows
us to "incorporate by reference" information that we file with them, which means
that we can disclose important information to limited partners by referring them
directly to those documents. Information incorporated by reference is considered
to be part of this Annual Report. In addition, information that we file with the
SEC in the future will automatically update and supersede information contained
in this Annual Report. Certain information contained in this Annual Report
contains "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements, other than statements
of historical facts, included in this Annual Report that address activities,
events or developments that we or the General Partner expects, believes or
anticipates will or may occur in the future are forward-looking statements.
These forward-looking statements are based upon certain assumptions and are
subject to risks and uncertainties. Actual events or results may differ from
those discussed in the forward-looking statements as a result of various
factors.
PART I.
ITEM 1. BUSINESS
The Partnership. Cable TV Fund 12-C, Ltd. (the "Partnership") is a Colorado
limited partnership that was formed pursuant to the public offering of limited
partnership interests in the Cable TV Fund 12 Limited Partnership Program (the
"Program"). Comcast Cable Communications, Inc., a Delaware corporation, is the
General Partner of the Partnership (the "General Partner"). Cable TV Fund 12-B,
Ltd. ("Fund 12-B") and Cable TV Fund 12-D, Ltd. ("Fund 12-D") are other
partnerships that were formed pursuant to the Program. In 1986, the Partnership,
Fund 12-B and Fund 12-D formed a general partnership known as Cable TV Fund 12-
BCD Venture (the "Venture"), in which the Partnership owned a 15% interest, Fund
12-B owned a 9% interest and Fund 12-D owned a 76% interest. The Partnership and
the Venture were formed for the purpose of acquiring and operating cable
television systems. The Partnership and the Venture no longer own any cable
television systems. The Venture was liquidated in 2000 and, therefore, the
Partnership had no investment in the Venture at December 31, 2002. The
Partnership currently conducts no operations and is expected to be dissolved
when the remaining litigation against it is concluded.
General Partner. On April 7, 1999, Comcast Holdings Corporation (formerly
Comcast Corporation) ("Comcast") completed the acquisition of a controlling
interest in Jones Intercable, Inc. ("Jones Intercable"), the Partnership's
general partner until March 2, 2000. In December 1999, Comcast and Jones
Intercable entered into a definitive merger agreement pursuant to which Comcast
agreed to acquire all of the outstanding shares of Jones Intercable not yet
owned by Comcast. On March 2, 2000, Jones Intercable was merged with and into
Comcast JOIN Holdings, Inc., a wholly owned subsidiary of Comcast. As a result
of this transaction, Jones Intercable no longer exists and Comcast JOIN
Holdings, Inc. continued as the surviving corporation of the merger. On August
1, 2000, Comcast JOIN Holdings, Inc. was merged with and into Comcast Cable
Communications, Inc. ("Comcast Cable"), a wholly owned subsidiary of Comcast.
Comcast Cable is now the General Partner of the Partnership. References in this
Annual Report to "the General Partner" refer to Comcast Cable. The General
Partner shares corporate offices with Comcast at 1500 Market Street,
Philadelphia, Pennsylvania 19102-2148. The partnership currently conducts no
operations and is expected to be dissolved when the remaining litigation against
it is concluded.
ITEM 2. PROPERTIES
As of December 31, 2002, neither the Partnership nor the Venture owned any
cable television systems.
ITEM 3. LEGAL PROCEEDINGS
Litigation Challenging Jones Intercable's Acquisitions of Certain Cable Systems
In June 1999, Jones Intercable was named a defendant in a case captioned City
Partnership Co., derivatively on behalf of Cable TV Fund 12-C, Ltd., Cable TV
Fund 12-D, Ltd. and Cable TV Fund 12-BCD Venture, plaintiff v. Jones Intercable,
Inc., defendant and Cable TV Fund 12-C, Ltd., Cable TV Fund 12-D, Ltd. and Cable
TV Fund 12-BCD Venture, nominal defendants (U.S. District Court, District of
Colorado, Civil Action No. 99-WM-1155) (the "City Partnership" case) brought by
City Partnership Co., a limited partner of the named partnerships. The
plaintiff's complaint alleges that Jones Intercable breached its fiduciary duty
to the plaintiff and to the other limited partners of the partnerships and to
the Venture in connection with the Venture's sale of the Palmdale, California
cable communications system (the "Palmdale System") to a subsidiary of Jones
Intercable in December 1998. The complaint alleges that Jones Intercable
acquired the Palmdale System at an unfairly low price that did not accurately
reflect the market value of the Palmdale System. The plaintiff also alleges that
the proxy solicitation materials delivered to the limited partners of the
partnerships in connection with the votes of the limited partners on the
Venture's sale of the Palmdale System contained inadequate and misleading
information concerning the fairness of the transaction, which the plaintiff
claims caused Jones Intercable to breach its fiduciary duty of candor to the
limited partners and which the plaintiff claims constituted acts and omissions
in violation of Section 14(a) of the Securities Exchange Act of 1934, as
amended. Plaintiff also claims that Jones Intercable breached the contractual
provision of the partnerships' limited partnership agreements requiring that the
sale price be determined by the average of three separate, independent
appraisals, challenging both the independence and the currency of the
appraisals. The complaint finally seeks declaratory injunctive relief to prevent
Jones Intercable from making use of the partnerships' funds to finance Jones
Intercable's defense of this litigation.
In August 1999, Jones Intercable was named a defendant in a case captioned
Gramercy Park Investments, LP, Cobble Hill Investments, LP and Madison/AG
Partnership Value Partners II, plaintiffs v. Jones Intercable, Inc. and Glenn R.
Jones, defendants, and Cable TV Fund 12-B, Ltd., Cable TV Fund 12-C, Ltd., Cable
TV Fund 12-D, Ltd., Cable TV Fund 14-A, Ltd. and Cable TV Fund 14-B, Ltd.,
nominal defendants (U.S. District Court, District of Colorado, Civil Action No.
99-B-1508) (the "Gramercy Park" case) brought as a class and derivative action
by limited partners of the named partnerships. The plaintiffs' complaint alleges
that the defendants made false and misleading statements to the limited partners
of the named partnerships in connection with the solicitation of proxies and the
votes of the limited partners on the sales of the Palmdale System, the
Albuquerque, New Mexico cable communications system (the "Albuquerque System"),
the Littlerock, California cable communications system (the "Littlerock System")
and the Calvert County, Maryland cable communications system (the "Calvert
County System") by the named partnerships to Jones Intercable or one of its
subsidiaries in violation of Sections 14 and 20 of the Securities Exchange Act
of 1934, as amended. The plaintiffs specifically allege that the proxy
statements delivered to the limited partners in connection with the limited
partners' votes on these sales were false, misleading and failed to disclose
material facts necessary to make the statements made not misleading. The
plaintiffs' complaint also alleges that the defendants breached their fiduciary
duties to the plaintiffs and to the other limited partners of the named
partnerships and to the named partnerships in connection with the various sales
of the Albuquerque System, the Palmdale System, the Littlerock System and the
Calvert County System to subsidiaries of Jones Intercable. The complaint alleges
that Jones Intercable acquired these cable communications systems at unfairly
low prices that did not accurately reflect the market values of the systems. The
plaintiffs seek on their own behalf and on behalf of all other limited partners
compensatory and nominal damages, the costs and expenses of the litigation,
including reasonable attorneys' and experts' fees, and punitive and exemplary
damages.
In September 1999, Jones Intercable was named a defendant in a case captioned
Mary Schumacher, Charles McKenzie and Geraldine Lucas, plaintiffs v. Jones
Intercable, Inc. and Glenn R. Jones, defendants and Cable TV Fund 12-B, Ltd.,
Cable TV Fund 12-C, Ltd., Cable TV Fund 12-D, Ltd., Cable TV Fund 14-A, Ltd. and
Cable TV Fund 14-B, Ltd., nominal defendants (U.S. District Court, District of
Colorado, Civil Action No. 99-WM-1702) ("Schumacher") brought as a class and
derivative action by three limited partners of the named partnerships. The
substance of the Schumacher plaintiffs' complaint is similar to the allegations
raised in the Gramercy Park case.
In September 1999, Jones Intercable was named a defendant in a case captioned
Robert Margolin, Henry Wahlgren and Joan Wahlgren, plaintiffs v. Jones
Intercable, Inc. and Glenn R. Jones, defendants and Cable TV Fund 12-B, Ltd.,
Cable TV Fund 12-C, Ltd., Cable TV Fund 12-D, Ltd., Cable TV Fund 14-A, Ltd. and
Cable TV Fund 14-B, Ltd., nominal defendants (U.S. District Court, District of
Colorado, Civil Action No. 99-B-1778) ("Margolin") brought as a class and
derivative action by three limited partners of the named partnerships. The
substance of the Margolin plaintiffs' complaint is similar to the allegations
raised in the Gramercy Park case.
In November 1999, the United States District Court for the District of Colorado
entered an order consolidating all of the cases challenging Jones Intercable's
acquisitions of the Albuquerque, Palmdale, Littlerock and Calvert County Systems
because these cases involve common questions of law and fact. The cases are
presented as both class and derivative actions. In June 2001, the plaintiffs
filed a motion for class certification. In August 2001, the General Partner
filed a brief in opposition to plaintiffs' motion for class certification. In
September 2002, the court granted the plaintiffs' motion for class
certification.
The General Partner believes that the defendants have defenses to the
plaintiffs' claims for relief and challenges to the plaintiffs' claims for
damages, and the General Partner intends to defend these lawsuits vigorously.
All amounts to be paid, if any, as a result of the litigation described above
are the responsibility of the General Partner, subject to any indemnification
rights of the General Partner pursuant to the terms of the limited partnership
agreements.
Litigation Relating to Limited Partnership List Requests
In July 1999, Jones Intercable, each of its subsidiaries that served as general
partners of Jones Intercable's managed partnerships and most of Jones
Intercable's managed partnerships, including the Partnership, were named
defendants in a case captioned Everest Cable Investors, LLC, Everest Properties,
LLC, Everest Properties II, LLC and KM
2
Investments, LLC, plaintiffs v. Jones Intercable, Inc., et al., defendants
(Superior Court, Los Angeles County, State of California, Case No. BC 213632).
Plaintiffs allege that certain of them formed a plan to acquire up to 4.9% of
the limited partnership interests in each of the managed partnerships named as
defendants, and that plaintiffs were frustrated in this purpose by Jones
Intercable's alleged refusal to provide plaintiffs with lists of the names and
addresses of the limited partners of these partnerships. The complaint alleges
that Jones Intercable's actions constituted a breach of contract, a breach of
Jones Intercable's implied covenant of good faith and fair dealing owed to the
plaintiffs as limited partners, a breach of Jones Intercable's fiduciary duty
owed to the plaintiffs as limited partners and tortious interference with
prospective economic advantage. Plaintiffs allege that Jones Intercable's
failure to provide them with the partnership lists prevented them from making
their tender offers and that they have been injured by such action in an amount
to be proved at trial, but not less than $17 million.
In September 1999, Jones Intercable and the defendant subsidiaries and managed
partnerships filed a notice of demurrers to the plaintiffs' complaint and a
hearing on this matter was held in October 1999. In December 1999, the Court
sustained the defendants' demurrers in part but the Court gave the plaintiffs
leave to amend their complaint to attempt to cure the deficiencies in the
pleadings. The plaintiffs filed their first amended complaint in January 2000.
Defendants demurred to the amended complaint in March 2000. In May 2000, the
Court sustained the defendants' demurrers without leave to amend as to all
plaintiffs except KM Investments, the sole plaintiff that was a limited partner
in any of the partnerships, thereby dismissing all claims on the merits except
those of KM Investments. In August 2000, all plaintiffs except KM Investments
appealed this ruling to the California State Court of Appeal for the Second
Appellate District. In June 2001, the appellate court ruled that all of the
plaintiffs have standing to bring the action, and the trial court's judgment was
reversed. The case was proceeding to discovery and the trial date, originally
scheduled for October 2002, was rescheduled for January 2003.
The case was settled by confidential written settlement agreement effective
December 13, 2002. The parties to the settlement agreement are (i) Everest Cable
Investors, LLC, Everest Properties, LLC, Everest Properties II, LLC, KM
Investments, LLC, KH Financial, Inc., W. Robert Kohorst and David Lesser, and
(ii) Comcast Cable Communications, Inc. (as successor to Jones Intercable,
Inc.), Jones Cable Corporation, Jones Spacelink Cable Corporation, Jones Cable
Income Fund 1-A Ltd., Jones Cable Income Fund 1-B, Ltd., Cable TV Fund 12-A,
Ltd., Cable TV Fund 12-B, Ltd., Cable TV Fund 12-C, Ltd., Cable TV Fund 12-D,
Ltd., Cable TV Fund 14-A, Ltd., Cable TV Fund 14-B, Ltd., Cable TV Fund 15-A,
Ltd., Jones Spacelink Income Growth Fund 1-A, Ltd., IDS/Jones Growth Partners
II, L.P. and Jones Growth Partners, L.P. Pursuant to the settlement agreement, a
dismissal of the action with prejudice was entered by the Court on January 6,
2003. All amounts paid as a result of the litigation described were paid by the
General Partner.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
PART II.
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED SECURITY
HOLDER MATTERS
While the Partnership is publicly held, there is no public market for the
limited partnership interests, and it is not expected that a market will develop
in the future. As of December 31, 2002, the number of equity security holders in
the Partnership was 3,281.
3
ITEM 6. SELECTED FINANCIAL DATA
For the Year Ended December 31,
-----------------------------------------------------------------------------
Cable TV Fund 12-C, Ltd. 2002 2001 2000 1999 1998
----------- ----------- ------------- ------------- -------------
Equity in Net Income (Loss) of Cable
Television Joint Venture........... $ $ $10,572 ($16,058) $37,395,261
Net Income (Loss)....................... (22,918) (43,983) (50,743) (29,010) 37,395,261 (1)
Net Income (Loss) per Limited...........
Partnership Unit................... (.36) (.69) (.80) (.46) 691.96 (1)
Weighted Average Number of Limited
Partnership Units Outstanding........... 47,626 47,626 47,626 47,626 47,626
General Partner's Capital............... 56,234 61,964 72,960 85,646 92,899
Limited Partners' Capital............... 168,706 185,894 218,881 256,938 278,695
Total Assets............................ 230,686 248,454 315,198 355,536 10,581,081
General Partner Advances ............. 5,746 596 23,357 12,952
For the Year Ended December 31,
-----------------------------------------------------------------------------
Cable TV Fund 12-BCD Venture 2002 2001 2000 1999 1998
----------- ----------- ------------- ------------- -------------
Revenues ............................... $ $ $ $ $59,492,754
Depreciation and Amortization .......... 16,500,689
Operating .............................. 3,924,809
Net Income (Loss) ...................... 69,191 (105,094) 243,722,979 (1)
Partners' Capital (Deficit) ............ 2,327,155 2,432,249
Total Assets ........................... 2,327,155 69,325,751
<FN>
(1) Net income resulted primarily from the sale of the Albuquerque System and
the Palmdale System by the Venture in June 1998 and December 1998,
respectively.
</FN>
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion contains, in addition to historical information,
forward-looking statements that are based upon certain assumptions and are
subject to a number of risks and uncertainties.
FINANCIAL CONDITION
The Partnership owned a 15 percent interest in the Venture. The investment
in cable television joint venture was accounted for under the equity method. The
Venture was liquidated in 2000 (see below). The only asset of the Partnership at
December 31, 2002 was its cash on hand of approximately $231,000, which will be
held in reserve and used to pay the administrative expenses of the Partnership
until it is dissolved. The Partnership may not have enough cash to reimburse the
general partner for all administrative expenses incurred prior to the
dissolution of the Partnership. In the event that the Partnership's cash supply
is inadequate to cover such costs, the General Partner will be required to pay
for any shortfall. In addition, all amounts to be paid, if any, as a result of
the pending litigation against the Partnership are the responsibility of the
General Partner, subject to any indemnification rights of the General Partner
pursuant to the terms of the limited partnership agreements (see Item 3 - Legal
Proceedings).
Taking into account all distributions that have been made at December 31,
2002, the Partnership's limited partners have received $769 for each $500
limited partnership interest, or $1,538 for each $1,000 invested in the
Partnership.
RESULTS OF OPERATIONS
The Venture was liquidated in 2000 and the Partnership conducted no
operations in 2002, 2001 or 2000; therefore, a discussion of results of
operations would not be meaningful. Administrative and other expense, net of
$26,597, $56,452 and $64,897 incurred in 2002, 2001 and 2000, respectively,
primarily related to various costs associated with the administration of the
Partnership. Prior to its liquidation, the Venture earned interest income of
$69,191 in 2000 on
4
its cash balance on hand and its cash was distributed to its Venture partners.
The Partnership is expected to be dissolved when the remaining litigation
against it is concluded. Until that time, administrative expenses will continue
to be incurred.
ITEM 8. FINANCIAL STATEMENTS
The audited financial statements of the Partnership as of December 31, 2002
and 2001 and for the three years in the period ended December 31, 2002 follow.
5
INDEPENDENT AUDITORS' REPORT
To the Partners of Cable TV Fund 12-C, Ltd.:
We have audited the accompanying balance sheet of Cable TV Fund 12-C, Ltd.
(a Colorado limited partnership) as of December 31, 2002, and the related
statements of operations, partners' capital and cash flows for the year ended
December 31, 2002. These financial statements are the responsibility of the
general partner's management. Our responsibility is to express an opinion on
these financial statements based on our audit. The financial statements of Cable
TV Fund 12-C, Ltd. as of December 31, 2001 and the years ended December 31, 2001
and 2000 were audited by other auditors who have ceased operations. Those
auditors expressed an unqualified opinion on those financial statements in their
report dated March 26, 2002.
We conducted our audit in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the 2002 financial statements present fairly, in all
material respects, the financial position of Cable TV Fund 12-C, Ltd. as of
December 31, 2002, and the results of their operations and their cash flows for
the year then ended, in conformity with accounting principles generally accepted
in the United States of America.
As described in Note 3, the administrative expenses of the Partnership are
paid for by the General Partner and are reimbursed by the Partnership. In the
event that the Partnership's cash supply is inadequate to cover such costs, the
General Partner will be required to pay for any shortfall. In addition, all
amounts to be paid, if any, as a result of the litigation described in Note 5
are the responsibility of the General Partner, subject to any indemnification
rights of the General Partner pursuant to the terms of the limited partnership
agreements.
Deloitte & Touche LLP
Philadelphia, Pennsylvania
January 31, 2003
6
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Partners of Cable TV Fund 12-C, Ltd.:
We have audited the accompanying balance sheets of CABLE TV FUND 12-C, LTD. (a
Colorado limited partnership) as of December 31, 2001 and 2000, and the related
statements of operations, partners' capital and cash flows for each of the three
years in the period ended December 31, 2001. These financial statements are the
responsibility of the general partner's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Cable TV Fund 12-C, Ltd. as of
December 31, 2001 and 2000, and the results of its operations and its cash flows
for each of the three years in the period ended December 31, 2001, in conformity
with accounting principles generally accepted in the United States.
/s/ ARTHUR ANDERSEN, LLP
Denver, Colorado,
March 26, 2002.
NOTE: This Audit Report is a copy of the Report of Independent Public
Accountants from our December 31, 2001 Annual Report on Form 10-K,
filed March 29, 2002, and has not been reissued by Arthur Andersen,
LLP.
7
CABLE TV FUND 12-C, LTD.
(A Limited Partnership)
BALANCE SHEET
December 31,
ASSETS 2002 2001
--------------- ---------------
Cash................................................................... $230,686 $248,454
--------------- ---------------
Total assets............................................. $230,686 $248,454
=============== ===============
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Advances from affiliates.......................................... $5,746 $596
--------------- ---------------
Total liabilities........................................ 5,746 596
--------------- ---------------
Commitments and Contingencies (Note 5)
PARTNERS' CAPITAL:
General Partner-
Contributed capital............................................... 1,000 1,000
Distributions..................................................... (4,325,216) (4,325,216)
Accumulated earnings.............................................. 4,380,450 4,386,180
--------------- ---------------
56,234 61,964
--------------- ---------------
Limited Partners-
Net contributed capital (47,626 units outstanding
at December 31, 2002 and 2001)................................ 19,998,049 19,998,049
Distributions..................................................... (36,629,513) (36,629,513)
Accumulated earnings.............................................. 16,800,170 16,817,358
--------------- ---------------
168,706 185,894
--------------- ---------------
Total liabilities and partners' capital.................. $230,686 $248,454
=============== ===============
See notes to financial statements.
8
CABLE TV FUND 12-C, LTD.
(A Limited Partnership)
STATEMENT OF OPERATIONS
Year Ended December 31,
2002 2001 2000
------------- ------------- -------------
INCOME (EXPENSE):
Interest expense......................................... $ $ ($155)
Interest income.......................................... 3,679 12,469 3,737
Administrative expenses and other, net................... (26,597) (56,452) (64,897)
------------- ------------- -------------
(22,918) (43,983) (61,315)
EQUITY IN NET INCOME OF CABLE TELEVISION
JOINT VENTURE............................................ 10,572
------------- ------------- -------------
NET LOSS...................................................... ($22,918) ($43,983) ($50,743)
============= ============= =============
ALLOCATION OF NET LOSS:
General Partner.......................................... ($5,730) ($10,996) ($12,686)
============= ============= =============
Limited Partners......................................... ($17,188) ($32,987) ($38,057)
============= ============= =============
NET LOSS PER LIMITED PARTNERSHIP UNIT......................... ($0.36) ($0.69) ($0.80)
============= ============= =============
WEIGHTED AVERAGE NUMBER
OF LIMITED PARTNERSHIP
UNITS OUTSTANDING........................................ 47,626 47,626 47,626
============= ============= =============
See notes to financial statements.
9
CABLE TV FUND 12-C, LTD.
(A Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
Year Ended December 31,
2002 2001 2000
------------- ------------- -------------
GENERAL PARTNER:
Balance, beginning of year............................... $61,964 $72,960 $85,646
Net loss................................................. (5,730) (10,996) (12,686)
------------- ------------- -------------
Balance, end of year..................................... $56,234 $61,964 $72,960
============= ============= =============
LIMITED PARTNERS:
Balance, beginning of year............................... $185,894 $218,881 $256,938
Net loss ................................................ (17,188) (32,987) (38,057)
------------- ------------- -------------
Balance, end of year..................................... $168,706 $185,894 $218,881
============= ============= =============
See notes to financial statements.
10
CABLE TV FUND 12-C, LTD.
(A Limited Partnership)
STATEMENT OF CASH FLOWS
For the Year Ended December 31,
2002 2001 2000
------------- ------------- --------------
OPERATING ACTIVITIES:
Net loss................................................... ($22,918) ($43,983) ($50,743)
Adjustments to reconcile net loss to net
cash used in operating activities:
Equity in net income of Cable Television
Joint Venture................................... (10,572)
Increase (decrease) in advances from affiliates... 5,150 (22,761) 10,405
------------- ------------- --------------
Net cash used in operating activities......... (17,768) (66,744) (50,910)
------------- ------------- --------------
INVESTING ACTIVITIES:
Distribution from Cable Television Joint Venture........... 366,108
------------- ------------- --------------
Net cash provided by investing activities..... 366,108
------------- ------------- --------------
(Decrease) increase in cash..................................... (17,768) (66,744) 315,198
Cash, beginning of year......................................... 248,454 315,198
------------- ------------- --------------
Cash, end of year............................................... $230,686 $248,454 $315,198
============= ============= ==============
See notes to financial statements.
11
CABLE TV FUND 12-C, LTD.
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND PARTNERS' INTERESTS
Formation and Business
Cable TV Fund 12-C, Ltd. ("Fund 12-C" or the "Partnership"), a Colorado
limited partnership, was formed on October 9, 1985, under a public program
sponsored by Jones Intercable, Inc. ("Jones Intercable"). Fund 12-C was
formed to acquire, construct, develop and operate cable television systems.
The Partnership had no operations in the three years ended December 31,
2002 and is expected to be dissolved when the remaining litigation against
it is concluded (see Note 5).
Formation of Joint Venture
Fund 12-C owned a 15 percent interest in Cable TV Fund 12-BCD Venture (the
"Venture") through capital contributions made in 1986 of $20,700,000. The
Venture owned the cable television systems serving Tampa, Florida (the
"Tampa System"), Albuquerque, New Mexico (the "Albuquerque System"), and
Palmdale, California (the "Palmdale System"). Prior to 1999, the Venture
sold all of its cable television systems. The Venture was liquidated in
2000 and therefore, the Partnership has no investment in the Venture at
December 31, 2002.
General Partner
On April 7, 1999, Comcast Holdings Corporation (formerly Comcast
Corporation) ("Comcast") completed the acquisition of a controlling
interest in Jones Intercable, the Partnership's general partner until March
2, 2000. In December 1999, Comcast and Jones Intercable entered into a
definitive merger agreement pursuant to which Comcast agreed to acquire all
of the outstanding shares of Jones Intercable not yet owned by Comcast. On
March 2, 2000, Jones Intercable was merged with and into Comcast JOIN
Holdings, Inc., a wholly owned subsidiary of Comcast. As a result of this
transaction, Jones Intercable no longer exists and Comcast JOIN Holdings,
Inc. continued as the surviving corporation of the merger. On August 1,
2000, Comcast JOIN Holdings, Inc. was merged with and into Comcast Cable
Communications, Inc. ("Comcast Cable"), a wholly owned subsidiary of
Comcast. Comcast Cable is now the General Partner of the Partnership.
References in these Notes to "the General Partner" refer to Comcast Cable.
The General Partner shares corporate offices with Comcast at 1500 Market
Street, Philadelphia, Pennsylvania 19102- 2148.
Contributed Capital
The capitalization of the Partnership is set forth in the accompanying
Statement of Partners' Capital. No limited partner is obligated to make any
additional contributions to partnership capital.
Jones Intercable purchased its general partner interest in the Partnership
by contributing $1,000 to partnership capital. Comcast Cable now owns this
general partner interest.
All profits and losses of the Partnership were allocated 99 percent to the
limited partners and 1 percent to the General Partner, except for income or
gain from the sale or disposition of cable television properties, which
were allocated to the partners based upon the formula set forth in the
partnership agreement, and interest income earned prior to the first
acquisition by the Partnership of a cable television system, which was
allocated 100 percent to the limited partners. After such time, all profits
and losses are allocated 75% to the limited partners and 25% to the General
Partner.
Taking into account all distributions that have been made at December 31,
2002, the Partnership's limited partners have received $769 for each $500
limited partnership interest, or $1,538 for each $1,000 limited partnership
interest.
12
CABLE TV FUND 12-C, LTD.
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS (Continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The accompanying financial statements have been prepared on the accrual
basis of accounting in accordance with accounting principles generally
accepted in the United States of America. The Partnership's tax returns
were also prepared on the accrual basis.
Management's Use of Estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
Investment in Cable Television Joint Venture
The Partnership's investment in the Venture was accounted for under the
equity method due to the Partnership's influence on the Venture as the
General Partner. Prior to its liquidation, the Venture earned interest
income of $69,191 in 2000.
Cash and Cash Equivalents
For purposes of the Statement of Cash Flows, the Partnership considered all
highly liquid investments purchased with an original maturity of three
months or less to be cash equivalents.
3. TRANSACTIONS WITH THE GENERAL PARTNER AND AFFILIATES
Distribution Ratios and Reimbursements
Any partnership distributions made from cash flow (defined as cash receipts
derived from routine operations, less debt principal and interest payments
and cash expenses) were allocated 99 percent to the limited partners and 1
percent to General Partner. Any distributions other than interest income on
limited partnership subscriptions earned prior to the acquisition of the
Partnership's first cable television system or from cash flow, such as from
the sale or refinancing of a system or upon dissolution of the Partnership,
were made as follows: first, to the limited partners in an amount which,
together with all prior distributions, equaled the amount initially
contributed by the limited partners; the balance, 75 percent to the limited
partners and 25 percent to the General Partner.
All administrative expenses are paid by the General Partner and are
reimbursed by the Partnership. In addition, the Partnership reimburses its
general partner for certain allocated administrative expenses. These
expenses represent the salaries and related benefits paid for corporate
personnel, who provide administrative, accounting, tax, legal and investor
relations services to the Partnership. Such services, and their related
costs, are necessary to the administration of the Partnership until the
Partnership is dissolved. Reimbursements made to the General Partner by the
Partnership for these administrative expenses during the years ended
December 31, 2002, 2001 and 2000 were $5,102, $22,122 and $28,119,
respectively. Such charges were included in Administrative expenses and
other, net in the accompanying Statement of Operations.
The Partnership may not have enough cash to reimburse the general partner
for all administrative expenses incurred prior to the dissolution of the
Partnership. In the event that the Partnership's cash supply is inadequate
to cover such costs, the General Partner will be required to pay for any
shortfall. In addition, all amounts to be paid, if any, as a result of the
litigation described in Note 5 are the responsibility of the General
Partner.
13
CABLE TV FUND 12-C, LTD.
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS (Continued)
4. INCOME TAXES
Income taxes have not been recorded in the accompanying financial
statements because they accrue directly to the partners. The federal and
state income tax returns of the Partnership are prepared and filed by the
General Partner.
The Partnership's tax returns, the qualification of the Partnership as such
for tax purposes, and the amount of distributable partnership income or
loss are subject to examination by federal and state taxing authorities. If
such examinations result in changes with respect to the Partnership's
qualification as such, or in changes with respect to the Partnership's
recorded income or loss, the tax liability of the general and limited
partners would likely be changed accordingly.
5. COMMITMENTS AND CONTINGENCIES
Litigation Challenging Jones Intercable's Acquisitions of Certain Cable
Systems
In June 1999, Jones Intercable was named a defendant in a case captioned
City Partnership Co., derivatively on behalf of Cable TV Fund 12-C, Ltd.,
Cable TV Fund 12-D, Ltd. and Cable TV Fund 12-BCD Venture, plaintiff v.
Jones Intercable, Inc., defendant and Cable TV Fund 12-C, Ltd., Cable TV
Fund 12-D, Ltd. and Cable TV Fund 12-BCD Venture, nominal defendants (U.S.
District Court, District of Colorado, Civil Action No. 99-WM-1155) (the
"City Partnership" case) brought by City Partnership Co., a limited partner
of the named partnerships. The plaintiff's complaint alleges that Jones
Intercable breached its fiduciary duty to the plaintiff and to the other
limited partners of the partnerships and to the Venture in connection with
the Venture's sale of the Palmdale, California cable communications system
(the "Palmdale System") to a subsidiary of Jones Intercable in December
1998. The complaint alleges that Jones Intercable acquired the Palmdale
System at an unfairly low price that did not accurately reflect the market
value of the Palmdale System. The plaintiff also alleges that the proxy
solicitation materials delivered to the limited partners of the
partnerships in connection with the votes of the limited partners on the
Venture's sale of the Palmdale System contained inadequate and misleading
information concerning the fairness of the transaction, which the plaintiff
claims caused Jones Intercable to breach its fiduciary duty of candor to
the limited partners and which the plaintiff claims constituted acts and
omissions in violation of Section 14(a) of the Securities Exchange Act of
1934, as amended. Plaintiff also claims that Jones Intercable breached the
contractual provision of the partnerships' limited partnership agreements
requiring that the sale price be determined by the average of three
separate, independent appraisals, challenging both the independence and the
currency of the appraisals. The complaint finally seeks declaratory
injunctive relief to prevent Jones Intercable from making use of the
partnerships' funds to finance Jones Intercable's defense of this
litigation.
In August 1999, Jones Intercable was named a defendant in a case captioned
Gramercy Park Investments, LP, Cobble Hill Investments, LP and Madison/AG
Partnership Value Partners II, plaintiffs v. Jones Intercable, Inc. and
Glenn R. Jones, defendants, and Cable TV Fund 12-B, Ltd., Cable TV Fund
12-C, Ltd., Cable TV Fund 12-D, Ltd., Cable TV Fund 14-A, Ltd. and Cable TV
Fund 14-B, Ltd., nominal defendants (U.S. District Court, District of
Colorado, Civil Action No. 99-B-1508) (the "Gramercy Park" case) brought as
a class and derivative action by limited partners of the named
partnerships. The plaintiffs' complaint alleges that the defendants made
false and misleading statements to the limited partners of the named
partnerships in connection with the solicitation of proxies and the votes
of the limited partners on the sales of the Palmdale System, the
Albuquerque, New Mexico cable communications system (the "Albuquerque
System"), the Littlerock, California cable communications system (the
"Littlerock System") and the Calvert County, Maryland cable communications
system (the "Calvert County System") by the named partnerships to Jones
Intercable or one of its subsidiaries in violation of Sections 14 and 20 of
the Securities Exchange Act of 1934, as amended. The plaintiffs
specifically allege that the proxy statements delivered to the limited
partners in connection with the limited partners' votes on these sales were
false, misleading and failed to disclose material facts necessary to make
the statements made not misleading. The plaintiffs'
14
CABLE TV FUND 12-C, LTD.
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS (Continued)
complaint also alleges that the defendants breached their fiduciary duties
to the plaintiffs and to the other limited partners of the named
partnerships and to the named partnerships in connection with the various
sales of the Albuquerque System, the Palmdale System, the Littlerock System
and the Calvert County System to subsidiaries of Jones Intercable. The
complaint alleges that Jones Intercable acquired these cable communications
systems at unfairly low prices that did not accurately reflect the market
values of the systems. The plaintiffs seek on their own behalf and on
behalf of all other limited partners compensatory and nominal damages, the
costs and expenses of the litigation, including reasonable attorneys' and
experts' fees, and punitive and exemplary damages.
In September 1999, Jones Intercable was named a defendant in a case
captioned Mary Schumacher, Charles McKenzie and Geraldine Lucas, plaintiffs
v. Jones Intercable, Inc. and Glenn R. Jones, defendants and Cable TV Fund
12-B, Ltd., Cable TV Fund 12-C, Ltd., Cable TV Fund 12-D, Ltd., Cable TV
Fund 14-A, Ltd. and Cable TV Fund 14-B, Ltd., nominal defendants (U.S.
District Court, District of Colorado, Civil Action No. 99-WM-1702)
("Schumacher") brought as a class and derivative action by three limited
partners of the named partnerships. The substance of the Schumacher
plaintiffs' complaint is similar to the allegations raised in the Gramercy
Park case.
In September 1999, Jones Intercable was named a defendant in a case
captioned Robert Margolin, Henry Wahlgren and Joan Wahlgren, plaintiffs v.
Jones Intercable, Inc. and Glenn R. Jones, defendants and Cable TV Fund
12-B, Ltd., Cable TV Fund 12-C, Ltd., Cable TV Fund 12-D, Ltd., Cable TV
Fund 14-A, Ltd. and Cable TV Fund 14-B, Ltd., nominal defendants (U.S.
District Court, District of Colorado, Civil Action No. 99-B-1778)
("Margolin") brought as a class and derivative action by three limited
partners of the named partnerships. The substance of the Margolin
plaintiffs' complaint is similar to the allegations raised in the Gramercy
Park case.
In November 1999, the United States District Court for the District of
Colorado entered an order consolidating all of the cases challenging Jones
Intercable's acquisitions of the Albuquerque, Palmdale, Littlerock and
Calvert County Systems because these cases involve common questions of law
and fact. The cases are presented as both class and derivative actions. In
June 2001, the plaintiffs filed a motion for class certification. In August
2001, the General Partner filed a brief in opposition to plaintiffs' motion
for class certification. In September 2002, the court granted the
plaintiffs' motion for class certification.
The General Partner believes that the defendants have defenses to the
plaintiffs' claims for relief and challenges to the plaintiffs' claims for
damages, and the General Partner intends to defend these lawsuits
vigorously. As discussed in Note 3, all amounts to be paid, if any, in
connection with this litigation are the responsibility of the General
Partner, subject to any indemnification rights of the General Partner
pursuant to the terms of the limited partnership agreements.
Litigation Relating to Limited Partnership List Requests
In July 1999, Jones Intercable, each of its subsidiaries that served as
general partners of Jones Intercable's managed partnerships and most of
Jones Intercable's managed partnerships, including the Partnership, were
named defendants in a case captioned Everest Cable Investors, LLC, Everest
Properties, LLC, Everest Properties II, LLC and KM Investments, LLC,
plaintiffs v. Jones Intercable, Inc., et al., defendants (Superior Court,
Los Angeles County, State of California, Case No. BC 213632).
Plaintiffs allege that certain of them formed a plan to acquire up to 4.9%
of the limited partnership interests in each of the managed partnerships
named as defendants, and that plaintiffs were frustrated in this purpose by
Jones Intercable's alleged refusal to provide plaintiffs with lists of the
names and addresses of the limited partners of these partnerships. The
complaint alleges that Jones Intercable's actions constituted a breach of
contract, a breach of Jones Intercable's implied covenant of good faith and
fair dealing owed to the plaintiffs as limited partners, a
15
CABLE TV FUND 12-C, LTD.
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS (Continued)
breach of Jones Intercable's fiduciary duty owed to the plaintiffs as
limited partners and tortious interference with prospective economic
advantage. Plaintiffs allege that Jones Intercable's failure to provide
them with the partnership lists prevented them from making their tender
offers and that they have been injured by such action in an amount to be
proved at trial, but not less than $17 million.
In September 1999, Jones Intercable and the defendant subsidiaries and
managed partnerships filed a notice of demurrers to the plaintiffs'
complaint and a hearing on this matter was held in October 1999. In
December 1999, the Court sustained the defendants' demurrers in part but
the Court gave the plaintiffs leave to amend their complaint to attempt to
cure the deficiencies in the pleadings. The plaintiffs filed their first
amended complaint in January 2000. Defendants demurred to the amended
complaint in March 2000. In May 2000, the Court sustained the defendants'
demurrers without leave to amend as to all plaintiffs except KM
Investments, the sole plaintiff that was a limited partner in any of the
partnerships, thereby dismissing all claims on the merits except those of
KM Investments. In August 2000, all plaintiffs except KM Investments
appealed this ruling to the California State Court of Appeal for the Second
Appellate District. In June 2001, the appellate court ruled that all of the
plaintiffs have standing to bring the action, and the trial court's
judgment was reversed. The case was proceeding to discovery and the trial
date, originally scheduled for October 2002, was rescheduled for January
2003.
The case was settled by confidential written settlement agreement effective
December 13, 2002. The parties to the settlement agreement are (i) Everest
Cable Investors, LLC, Everest Properties, LLC, Everest Properties II, LLC,
KM Investments, LLC, KH Financial, Inc., W. Robert Kohorst and David
Lesser, and (ii) Comcast Cable Communications, Inc. (as successor to Jones
Intercable, Inc.), Jones Cable Corporation, Jones Spacelink Cable
Corporation, Jones Cable Income Fund 1-A Ltd., Jones Cable Income Fund 1-B,
Ltd., Cable TV Fund 12-A, Ltd., Cable TV Fund 12-B, Ltd., Cable TV Fund
12-C, Ltd., Cable TV Fund 12-D, Ltd., Cable TV Fund 14-A, Ltd., Cable TV
Fund 14-B, Ltd., Cable TV Fund 15-A, Ltd., Jones Spacelink Income Growth
Fund 1-A, Ltd., IDS/Jones Growth Partners II, L.P. and Jones Growth
Partners, L.P. Pursuant to the settlement agreement, a dismissal of the
action with prejudice was entered by the Court on January 6, 2003. As
discussed in Note 3, all amounts paid in connection with this litigation
were paid by the General Partner.
6. UNAUDITED SUPPLEMENTARY DATA
Selected unaudited quarterly financial information is presented below:
First Second Third Fourth Total
2002 Quarter Quarter Quarter Quarter Year
----------- ---------- ----------- ---------- -----------
Net income (loss)........................ $1,651 ($12,963) ($3,516) ($8,090) ($22,918)
Net income (loss) per limited
partnership unit.................... .03 (.20) (.06) (.13) (.36)
Weighted average number of limited
partnership units outstanding....... 47,626 47,626 47,626 47,626 47,626
First Second Third Fourth Total
2001 Quarter Quarter Quarter Quarter Year
----------- ---------- ----------- ---------- -----------
Net loss................................. ($5,434) ($28,345) ($4,080) ($6,124) ($43,983)
Net loss per limited partnership unit.... (.09) (.45) (.06) (.09) (.69)
Weighted average number of limited
partnership units outstanding....... 47,626 47,626 47,626 47,626 47,626
16
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
PART III.
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The Partnership itself has no officers or directors. Certain information
concerning the directors and executive officers of the General Partner as of
December 31, 2002 is set forth below. Directors of the General Partner serve
until the next annual meeting of the General Partner and until their successors
shall be elected and qualified.
Brian L. Roberts was named Chairman of the General Partner's Board of
Directors in November 2002. Mr. Roberts had served as Vice Chairman of the
General Partner's Board of Directors since April 1999. Mr. Roberts has served as
the President and as a director of Comcast for more than five years. As of
December 31, 2002, Mr. Roberts has sole voting power over approximately 33 1/3%
of the combined voting power of Comcast Corporation's two classes of voting
common stock. Mr. Roberts is the Chief Executive Officer of the General Partner
and of Comcast Corporation. He is also a director of The Bank of New York
Company, Inc. He is 43 years old.
Lawrence S. Smith has served as Executive Vice President and a director of
the General Partner since April 1999. Mr. Smith has served as an Executive Vice
President of Comcast for more than five years. Mr. Smith is the Co-Chief
Financial Officer of the General Partner and of Comcast Corporation. He is 55
years old.
John R. Alchin has served as Executive Vice President and Treasurer of the
General Partner since January 2000. Prior to that time, Mr. Alchin served as a
Senior Vice President and Treasurer and a director of the General Partner since
April 1999. Mr. Alchin was named an Executive Vice President of Comcast in
January 2000. Prior to that time, he served as a Senior Vice President and
Treasurer of Comcast for more than five years. Mr. Alchin is the Co-Chief
Financial Officer of the General Partner and of Comcast Corporation. He is 54
years old.
David L. Cohen joined Comcast in July 2002 as Executive Vice President.
Prior to that time, he was Partner in, and Chairman of, the law firm of Ballard
Spahr Andrews & Ingersoll, LLP for more than five years. Mr. Cohen is a director
of the General Partner. He is 47 years old.
Arthur R. Block was named a director of the General Partner's Board of
Directors in November 2002. Mr. Block has served as a Senior Vice President and
General Counsel for Comcast since January 2000. Prior to January 2000, Mr. Block
served as Vice President and Senior Deputy General Counsel of Comcast for more
than five years. Mr. Block also was named Secretary of Comcast Corporation in
November 2002. He is 48 years old.
Lawrence J. Salva was named Controller of Comcast Corporation in November
2002. Mr. Salva joined Comcast in January 2000 as Senior Vice President and
Chief Accounting Officer. Prior to that time, Mr. Salva was a national
accounting consulting partner in the public accounting firm of
PricewaterhouseCoopers for more than five years. Mr. Salva is a Senior Vice
President of the General Partner. He is 46 years old.
ITEM 11. EXECUTIVE COMPENSATION
The Partnership has no employees; however, various personnel are required
to administer the financial, tax and legal affairs of the Partnership and to
maintain the books and records of the Partnership. Such personnel are employed
by the General Partner and, pursuant to the terms of the limited partnership
agreement of the Partnership, the costs of such employment are charged by the
General Partner to the Partnership. See Item 13.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGERS
As of December 31, 2002, no person or entity owned more than 5% of the limited
partnership interests of the Partnership.
17
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The Partnership reimburses its general partner for certain allocated
overhead and administrative expenses. These expenses represent the salaries and
benefits paid to corporate personnel. Such personnel provide administrative,
tax, accounting, legal and investor relations services to the Partnership. The
Partnership will continue to reimburse its general partner for actual time spent
on Partnership business by employees of Comcast until the Partnership is
liquidated and dissolved. During the years ended December 31, 2002, 2001 and
2000, such reimbursements totaled $5,102, $22,122 and $28,119, respectively.
PART IV.
ITEM 14. CONTROLS AND PROCEDURES
(a) Controls and procedures. Our chief executive officer and our co-chief
financial officers, after evaluating the effectiveness of our "disclosure
controls and procedures" (as defined in the Securities Exchange Act of 1934
Rules 13a-14(c) and 15d-14(c)) as of a date (the "Evaluation Date") within
90 days before the filing date of this annual report, have concluded that
as of the Evaluation Date, our disclosure controls and procedures were
adequate and designed to ensure that material information relating to us
and our consolidated subsidiaries would be made known to them by others
within those entities.
(b) Changes in internal controls. There were no significant changes in our
internal controls or to our knowledge, in other factors that could
significantly affect our internal controls and procedures subsequent to the
Evaluation Date.
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
(a) The following financial statements of ours are included in Part II, Item 8:
Independent Auditors' Reports..........................6
Balance Sheet--December 31, 2002 and 2001..............8
Statement of Operations--
Years Ended December 31, 2002, 2001 and 2000...........9
Statement of Partners' Capital--
Years Ended December 31, 2002, 2001 and 2000..........10
Statement of Cash Flows--
Years Ended December 31, 2002, 2001 and 2000..........11
Notes to Financial Statements.........................12
(b) The following financial statement schedules required to be filed by Items 8
and 14(d) of Form 10-K are included in Part IV:
None
(c) Reports on Form 8-K:
(i) We filed a Current Report on Form 8-K under Items 4 and 7(c) dated June
24, 2002 announcing a change in the Partnership's certifying accountant.
(d) Exhibits filed herewith:
4.1 Limited Partnership Agreement for Cable TV Fund 12-C, Ltd.
(incorporated by reference from the Partnership's Annual Report on
Form 10-K for the fiscal year ended December 31, 1985).
4.2 Joint Venture Agreement of Cable TV Fund 12-BCD Venture dated
as of March 17, 1986, among Cable TV Fund 12-B, Ltd., Cable TV
Fund 12-C, Ltd. and Cable TV Fund 12-D, Ltd. (incorporated by
reference from the Partnership's Annual Report on Form 10-K
for the fiscal year ended December 31, 1987).
18
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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 in Philadelphia,
Pennsylvania.
CABLE TV FUND 12-C, LTD.,
a Colorado limited partnership
By: Comcast Cable Communications, Inc.,
a Delaware corporation, its General Partner
By: /s/ Brian L. Roberts
----------------------------------------------------
Brian L. Roberts
Dated: March 28, 2003 Chairman; Director
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
By: /s/ Brian L. Roberts
----------------------------------------------------
Brian L. Roberts
Chairman; Director
Dated: March 28, 2003 (Principal Executive Officer)
By: /s/ Lawrence S. Smith
----------------------------------------------------
Lawrence S. Smith
Dated: March 28, 2003 Executive Vice President; Director
(Co-Principal Financial Officer)
By: /s/ John R. Alchin
----------------------------------------------------
John R. Alchin
Executive Vice President; Treasurer
Dated: March 28, 2003 (Co-Principal Financial Officer)
By: /s/ David L. Cohen
----------------------------------------------------
David L. Cohen
Dated: March 28, 2003 Executive Vice President; Director
By: /s/ Arthur R. Block
----------------------------------------------------
Arthur R. Block
Senior Vice President; General Counsel; Secretary;
Dated: March 28, 2003 Director
By: /s/ Lawrence J. Salva
----------------------------------------------------
Lawrence J. Salva
Senior Vice President
Dated: March 28, 2003 (Principal Accounting Officer)
19
CERTIFICATIONS
I, Brian L. Roberts, certify that:
1. I have reviewed this annual report on Form 10-K of Cable TV Fund 12-C,
Ltd.;
2. Based on my knowledge, this annual report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this annual report;
3. Based on my knowledge, the financial statements, and other financial
information included in this annual report, fairly present in all material
respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this annual report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this annual report is
being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
annual report (the "Evaluation Date"); and
c) presented in this annual report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of
the Evaluation Date;
5. Registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit
committee of the registrant's board of directors (or persons performing the
equivalent functions):
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have
identified for the registrant's auditors any material weaknesses in
internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
controls; and
6. The registrant's other certifying officers and I have indicated in this
annual report whether there were significant changes in internal controls
or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.
Date: March 28, 2003
/s/ Brian L. Roberts
- --------------------------------------------
Name: Brian L. Roberts
Chief Executive Officer
20
I, Lawrence S. Smith, certify that:
1. I have reviewed this annual report on Form 10-K of Cable TV Fund 12-C,
Ltd.;
2. Based on my knowledge, this annual report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this annual report;
3. Based on my knowledge, the financial statements, and other financial
information included in this annual report, fairly present in all material
respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this annual report;
4. Registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this annual report is
being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
annual report (the "Evaluation Date"); and
c) presented in this annual report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of
the Evaluation Date;
5. Registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit
committee of the registrant's board of directors (or persons performing the
equivalent functions):
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have
identified for the registrant's auditors any material weaknesses in
internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
controls; and
6. The registrant's other certifying officers and I have indicated in this
annual report whether there were significant changes in internal controls
or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.
Date: March 28, 2003
/s/ Lawrence S. Smith
- -------------------------------------------
Name: Lawrence S. Smith
Co-Chief Financial Officer
21
I, John R. Alchin, certify that:
1. I have reviewed this annual report on Form 10-K of Cable TV Fund 12-C,
Ltd.;
2. Based on my knowledge, this annual report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this annual report;
3. Based on my knowledge, the financial statements, and other financial
information included in this annual report, fairly present in all material
respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this annual report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this annual report is
being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
annual report (the "Evaluation Date"); and
c) presented in this annual report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of
the Evaluation Date;
5. Registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit
committee of the registrant's board of directors (or persons performing the
equivalent functions):
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have
identified for the registrant's auditors any material weaknesses in
internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
controls; and
6. The registrant's other certifying officers and I have indicated in this
annual report whether there were significant changes in internal controls
or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.
Date: March 28, 2003
/s/ John R. Alchin
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Name: John R. Alchin
Co-Chief Financial Officer
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