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, 2003
[ ] 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
----- -----
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12-b2 of the Exchange Act).
Yes No X
----- -----
CABLE TV FUND 14-A, LTD.
------------------------
(A Limited Partnership)
CONDENSED BALANCE SHEET
-----------------------
(Unaudited)
September 30, December 31,
ASSETS 2003 2002
------ ---------------- ---------------
Cash.................................................................. $2,386,380 $2,411,510
---------------- ---------------
Total assets............................................ $2,386,380 $2,411,510
================ ===============
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
LIABILITIES:
Advances from affiliates......................................... $19,046 $7,508
Accounts payable and accrued liabilities......................... 632,500 632,500
---------------- ---------------
Total liabilities....................................... 651,546 640,008
---------------- ---------------
Commitments and Contingencies (Note 3)
PARTNERS' CAPITAL:
General Partner-
Contributed capital.............................................. 1,000 1,000
Distributions.................................................... (5,101,517) (5,101,517)
Accumulated earnings............................................. 5,534,225 5,543,392
---------------- ---------------
433,708 442,875
---------------- ---------------
Limited Partners-
Net contributed capital (160,000 units outstanding
at September 30, 2003 and December 31, 2002)................. 68,722,000 68,722,000
Distributions.................................................... (115,304,552) (115,304,552)
Accumulated earnings............................................. 47,883,678 47,911,179
---------------- ---------------
1,301,126 1,328,627
---------------- ---------------
Total liabilities and partners' capital.................. $2,386,380 $2,411,510
================ ===============
See notes to condensed financial statements.
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CABLE TV FUND 14-A, LTD.
------------------------
(A Limited Partnership)
CONDENSED STATEMENT OF OPERATIONS
---------------------------------
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
-------------- ------------- ------------- -------------
OTHER INCOME (EXPENSE):
Interest income.................................... $3,905 $8,781 $14,247 $24,731
Administrative expenses and other.................. (14,045) (12,788) (50,915) (62,488)
-------------- ------------- ------------- -------------
NET LOSS................................................ ($10,140) ($4,007) ($36,668) ($37,757)
============== ============= ============= =============
ALLOCATION OF NET LOSS:
General Partner.................................... ($2,535) ($1,002) ($9,167) ($9,439)
============== ============= ============= =============
Limited Partners................................... ($7,605) ($3,005) ($27,501) ($28,318)
============== ============= ============= =============
NET LOSS PER LIMITED
PARTNERSHIP UNIT................................... ($0.05) ($0.02) ($0.17) ($0.18)
============== ============= ============= =============
WEIGHTED AVERAGE NUMBER OF LIMITED
PARTNERSHIP UNITS OUTSTANDING...................... 160,000 160,000 160,000 160,000
============== ============= ============= =============
See notes to condensed financial statements.
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CABLE TV FUND 14-A, LTD.
------------------------
(A Limited Partnership)
CONDENSED STATEMENT OF CASH FLOWS
---------------------------------
(Unaudited)
Nine Months Ended
September 30,
2003 2002
-------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss............................................................................ ($36,668) ($37,757)
Adjustments to reconcile net loss to net cash
used in operating activities:
Decrease in interest receivable............................................ 3,903
Increase (decrease) in advances from affiliates............................ 11,538 (5,132)
-------------- -------------
Net cash used in operating activities.................................. (25,130) (38,986)
Cash, beginning of period................................................................ 2,411,510 2,455,898
-------------- -------------
Cash, end of period...................................................................... $2,386,380 $2,416,912
============== =============
See notes to condensed financial statements.
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CABLE TV FUND 14-A, LTD.
------------------------
(A Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS
---------------------------------------
(Unaudited)
(1) The condensed balance sheet as of December 31, 2002 has been derived from
the audited balance sheet as of that date. The condensed balance sheet as of
September 30, 2003, the condensed statement of operations for the three and nine
months ended September 30, 2003 and 2002, and the condensed statement of cash
flows for the nine months ended September 30, 2003 and 2002 are unaudited. In
the opinion of management, all adjustments necessary to present fairly the
financial position, results of operations and cash flows as of September 30,
2003 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, 2002 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 to which the Partnership is a party (see
Note 3).
(2) The Partnership reimburses its general partner for certain allocated
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 in the accompanying condensed statement of
operations. Administrative expenses allocated to the Partnership for the three
months ended September 30, 2003 and 2002 and for the nine months ended September
30, 2003 and 2002 were $618, $7,963, $1,854 and $28,110, 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, California cable communications system (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
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CABLE TV FUND 14-A, LTD.
------------------------
(A Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS
---------------------------------------
(Unaudited)
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.
On June 25, 2003, the parties agreed to the terms of a settlement of
this litigation and entered into a written settlement agreement, and notice of
the settlement was sent to the limited partners on August 5, 2003. Because these
are class and derivative actions, the settlement must be approved by the court.
On October 14, 2003, the judge issued a Recommendation of United States
Magistrate Judge, in which he recommended to the United States District Court
judge that the settlement be approved. If the District Court judge accepts this
recommendation and approves the settlement, the General Partner, within thirty
(30) days of such approval, will cause the Partnership to distribute, pursuant
to the distribution provisions of the Limited Partnership Agreement of the
Partnership, the proceeds received by the Partnership from the settlement.
If and when the settlement is finally approved, the Partnership will
then be dissolved, although no assurance can be given regarding when the
dissolution will take place.
All amounts to be paid as a result of the litigation described above
are the responsibility of the General Partner, subject to indemnification and
other rights of the General Partner pursuant to the terms of the limited
partnership agreement.
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CABLE TV FUND 14-A, LTD.
------------------------
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
FINANCIAL CONDITION
- -------------------
The only asset of the Partnership at September 30, 2003 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 to which the Partnership is a party
described in Note 3 to our condensed financial statements.
RESULTS OF OPERATIONS
- ---------------------
Administrative expenses and other in the accompanying condensed
statement of operations represents various costs associated with the
administration of the Partnership.
Item 4. 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-15(e) or 15d-15(e)) as
of the end of the period covered by this quarterly report, have concluded, based
on the evaluation of these controls and procedures required by paragraph (b) of
Exchange Act Rules 13a-15 or 15d-15, that 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.
Changes in internal control over financial reporting. There were no
changes in our internal control over financial reporting identified in
connection with the evaluation required by paragraph (d) of Exchange Act Rules
13a-15 or 15d-15 that occurred during our last fiscal quarter that have
materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.
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
31 Certifications of Chief Executive Officer and Co-Chief
Financial Officers pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
32 Certification of Chief Executive Officer and Co-Chief
Financial Officers pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
b) Reports on Form 8-K
None.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CABLE TV FUND 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, 2003
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