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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
[x] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended
SEPTEMBER 30, 2002
[ ] Transition report pursuant to section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from to
--------------- ---------------
Commission File Number 0-15378
CABLE TV FUND 14-A, LTD.
Exact name of registrant as specified in charter
Colorado 84-1024657
- ---------------------------------- -----------------------------
State of organization I.R.S. employer I.D. #
c/o Comcast Corporation
1500 Market Street, Philadelphia, PA 19102-2148
- --------------------------------------------------------------------------------
Address of principal executive office
(215) 665-1700
- --------------------------------------------------------------------------------
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
------ -------
CABLE TV FUND 14-A, LTD.
------------------------
(A Limited Partnership)
CONDENSED BALANCE SHEET
-----------------------
(Unaudited)
September 30, December 31,
ASSETS 2002 2001
------ ---------------- ----------------
Cash ................................................................ $2,416,912 $2,455,898
Interest receivable.................................................. 3,903
--------------- ---------------
Total assets.................................................. $2,416,912 $2,459,801
=============== ===============
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
LIABILITIES:
Advances from affiliates.......................................... $1,000 $6,132
Accrued other..................................................... 632,500 632,500
--------------- ---------------
Total liabilities............................................. 633,500 638,632
--------------- ---------------
Commitments and Contingencies (Note 3)
PARTNERS' CAPITAL:
General Partner-
Contributed capital............................................... 1,000 1,000
Distributions..................................................... (5,101,517) (5,101,517)
Accumulated earnings.............................................. 5,546,370 5,555,809
--------------- ---------------
445,853 455,292
--------------- ---------------
Limited Partners-
Net contributed capital (160,000 units outstanding
at September 30, 2002 and December 31, 2001).................... 68,722,000 68,722,000
Distributions..................................................... (115,304,552) (115,304,552)
Accumulated earnings.............................................. 47,920,111 47,948,429
--------------- ---------------
1,337,559 1,365,877
--------------- ---------------
Total liabilities and partners' capital....................... $2,416,912 $2,459,801
=============== ===============
See notes to condensed financial statements.
1
CABLE TV FUND 14-A, LTD.
------------------------
(A Limited Partnership)
CONSENSED STATEMENT OF OPERATIONS
---------------------------------
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
------------ ------------ ------------ -----------
OTHER INCOME (EXPENSE):
Interest income.............................................. $8,781 $20,927 $24,731 $187,131
Administrative expenses and other, net....................... (12,788) (20,562) (62,488) (106,523)
----------- ----------- ----------- ----------
NET INCOME (LOSS)............................................... ($4,007) $365 ($37,757) $80,608
=========== =========== =========== ==========
ALLOCATION OF NET INCOME (LOSS):
General Partner.............................................. ($1,002) $91 ($9,439) $20,152
=========== =========== =========== ==========
Limited Partners............................................. ($3,005) $274 ($28,318) $60,456
=========== =========== =========== ==========
NET INCOME (LOSS) PER LIMITED PARTNERSHIP UNIT.................. ($0.02) ($0.18) $0.38
=========== =========== =========== ==========
WEIGHTED AVERAGE NUMBER OF LIMITED
PARTNERSHIP UNITS OUTSTANDING................................ 160,000 160,000 160,000 160,000
=========== =========== =========== ==========
See notes to condensed financial statements.
2
CABLE TV FUND 14-A, LTD.
------------------------
(A Limited Partnership)
CONDENSED STATEMENT OF CASH FLOWS
---------------------------------
(Unaudited)
Nine Months Ended
September 30,
2002 2001
------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)............................................................ ($37,757) $80,608
Adjustments to reconcile net income (loss) to net cash
(used in) provided by operating activities:
Decrease in interest receivable.......................................... 3,903 44,607
Decrease in accounts payable and accrued liabilities..................... (25,339)
Decrease in advances from affiliates..................................... (5,132) (19,094)
------------ -------------
Net cash (used in) provided by operating activities.................... (38,986) 80,782
------------ -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distribution to General Partner.............................................. (1,875,000)
Distribution to limited partners............................................. (5,625,000)
------------ -------------
Net cash used in financing activities.................................. (7,500,000)
------------ -------------
Decrease in cash................................................................ (38,986) (7,419,218)
Cash, beginning of period....................................................... 2,455,898 9,904,418
------------ -------------
Cash, end of period............................................................. $2,416,912 $2,485,200
============ =============
See notes to condensed financial statements.
3
CABLE TV FUND 14-A, LTD.
------------------------
(A Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS
---------------------------------------
(Unaudited)
(1) The condensed balance sheet as of December 31, 2001 has been derived from
the audited balance sheet as of that date. The condensed balance sheet as of
September 30, 2002, the condensed statement of operations for the three and nine
months ended September 30, 2002 and 2001, and the condensed statement of cash
flows for the nine months ended September 30, 2002 and 2001 have been prepared
by Cable TV Fund 14-A, Ltd. (the "Partnership") and have not been audited by the
Partnership's independent auditors. In the opinion of management, all
adjustments necessary to present fairly the financial position, results of
operations and cash flows as of September 30, 2002 and for all periods presented
have been made.
Certain information and note disclosures normally included in the
Partnership's annual financial statements prepared in accordance with accounting
principles generally accepted in the United States have been condensed or
omitted. These condensed financial statements should be read in conjunction with
the financial statements and notes thereto included in the Partnership's
December 31, 2001 Annual Report on Form 10-K filed with the Securities and
Exchange Commission. The results of operations for the interim periods presented
are not necessarily indicative of operating results for the full year.
The Partnership owns no properties. The Partnership has continued in
existence because of pending litigation in which the Partnership is a party. It
cannot be predicted when the Partnership will be dissolved.
(2) The Partnership reimburses its general partner for certain administrative
expenses. These expenses represent the salaries and related benefits paid for
corporate personnel. Such personnel provide administrative, accounting, tax,
legal and investor relations services to the Partnership. Such services, and
their related costs, are necessary for the administration of the Partnership
until the Partnership is dissolved. Such charges were included in administrative
expenses and other, net in the accompanying condensed statement of operations.
Reimbursements made to the general partner by the Partnership for administrative
expenses for the three months ended September 30, 2002 and 2001 and for the nine
months ended September 30, 2002 and 2001 were $7,963, $17,338, $28,110 and
$65,572, respectively.
(3) Commitments and Contingencies
Litigation Challenging Jones Intercable's Acquisition of Certain Cable Systems
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.
4
CABLE TV FUND 14-A, LTD.
------------------------
(A Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS (Concluded)
---------------------------------------------------
(Unaudited)
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.
Litigation Relating to Limited Partnership List Requests
The Partnership was a defendant in a case captioned Everest Cable
Investors, LLC, et al., plaintiffs v. Jones Intercable, Inc., et al, defendants
(Superior Court, Los Angeles County, State of California, Case No. BC 213632)
originally filed in July 1999. Plaintiffs alleged that certain of them formed a
venture to acquire limited partnership interests in the Partnership and that
plaintiffs were frustrated in this purpose by Jones Intercable's alleged refusal
to provide plaintiffs with a list of the names and addresses of the limited
partners of the Partnership. Plaintiffs alleged that their failure to obtain the
partnership list prevented them from making a tender offer for the Partnership's
limited partnership interests causing them economic loss. None of the plaintiffs
is a limited partner of the Partnership but one of the plaintiffs alleged that
it held a power of attorney from a limited partner of the Partnership. The trial
court found that a holder of a power of attorney is not a real party in interest
capable of suing on the rights of the principal and thus dismissed the case
against the Partnership. The plaintiffs chose not to appeal this ruling of the
trial court and thus the Partnership is no longer a party to this litigation.
5
CABLE TV FUND 14-A, LTD.
------------------------
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
FINANCIAL CONDITION
- -------------------
The only asset of the Partnership at September 30, 2002 was its cash on
hand, which is being held in reserve to pay the Partnership's administrative
expenses until the Partnership is dissolved. The Partnership has continued in
existence because of pending litigation in which the Partnership is a party. It
cannot be predicted when the Partnership will be dissolved.
RESULTS OF OPERATIONS
- ---------------------
Administrative expenses and other, net in the accompanying condensed
statement of operations represents various costs associated with the
administration of the Partnership.
Item 4. Evaluation of Disclosure Controls and Procedures
(a) Evaluation of disclosure 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 quarterly
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 would be made
known to them.
(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.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Refer to Note 3 to our condensed financial statements included in this
Quarterly Report on Form 10-Q for a discussion of recent developments related to
our legal proceedings.
Item 6. Exhibits and Reports on Form 8-K.
a) Exhibits
None.
b) Reports on Form 8-K
None.
6
SIGNATURE
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: COMCAST CABLE COMMUNICATIONS, INC.
-----------------------------------
General Partner
By: /s/ Lawrence J. Salva
-----------------------------------
Lawrence J. Salva
Senior Vice President
(Principal Accounting Officer)
Dated: November 13, 2002
7
CERTIFICATIONS
I, Brian L. Roberts, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Cable TV Fund 14-A,
Ltd.;
2. Based on my knowledge, this quarterly 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 quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly 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
quarterly 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 we 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 quarterly 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
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The 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 function):
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
quarterly report whether or not 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: November 13, 2002
/s/ Brian L. Roberts
- ---------------------------------------------
Name: Brian L. Roberts
Chief Executive Officer
8
I, Lawrence S. Smith, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Cable TV Fund 14-A,
Ltd.;
2. Based on my knowledge, this quarterly 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 quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly 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
quarterly 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 we 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 quarterly 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
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The 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 function):
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
quarterly report whether or not 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: November 13, 2002
/s/ Lawrence S. Smith
- --------------------------------------------
Name: Lawrence S. Smith
Co-Chief Financial Officer
9
I, John R. Alchin, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Cable TV Fund 14-A,
Ltd.;
2. Based on my knowledge, this quarterly 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 quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly 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
quarterly 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 we 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 quarterly 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
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The 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 function):
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
quarterly report whether or not 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: November 13, 2002
/s/ John R. Alchin
- ---------------------------------------------
Name: John R. Alchin
Co-Chief Financial Officer
10