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Home My WebLink About850798.tiff Ae2037509 RESOLUTION RE: TRANSFER AND ASSIGNMENT OF CABLE T.V. FRANCHISE TO SOUTHWEST r O CABLEVISION LIMITED o WHEREAS, the Board of County Commissioners of Weld County, -40 Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and w o W O• 3 WHEREAS, Weld County, Colorado (the "County") approved and o enacted Ordinance No. 94 on December 14 , 1981 authorizing the grant of a cable television franchise, and approved and enacted a o Grant of Franchise on September 15 , 1982 and an unnumbered • Resolution on September 15 , 1982 granting a cable television z franchise (collectively, as amended to date, the "Franchise") to w Greeley Video, Inc. , a Colorado corporation ("Greeley") ; and a WHEREAS, Greeley transferred the Franchise to Northern Ln a Colorado Video, Inc. , a Colorado corporation ("NCV" ) , pursuant to co v a merger of Greeley into NCV, and NCV, the current holder of the . z Franchise, desires to transfer to the partnership known as H Southwest Cablevision Limited ("Southwest") ; and N E+ x WHEREAS, the Board of County Commissioners of the County of m • Weld, recognizes that Southwest, will be serving only a small area o w in Weld County, of less than 500 subscribers; and m o z WHEREAS, the applicant has presented facts sufficient to `" persuade the Board of County Commissioners of the County of Weld, N to evoke the WAIVER OF REQUIREMENTS a heading of Ordinance No. 94-A amending Ordinance No. 94 in a limited manner as hereinafter set forth; and O CO mo CO WHEREAS , request has now been made that the transfer to NCV '-' ° of the Franchise be approved, ratified and confirmed and the ow proposed transfer to Southwest of the Franchise be approved, and that both transfers be approved and evidenced by resolution. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF THE WELD COUNTY, STATE OF COLORADO: Section 1 . That the County hereby approves of, consents to and ratifies and confirms the transfer and assignment of the Franchise by Greeley to NCV. Section 2 . That the County hereby approves of and consents to the transfer and assignment of the Franchise by NCV to Southwest Cablevision Limited subject to the following exception hereby granted pursuant to the WAIVER OF REQUIREMENTS heading of Ordinance No. 94-A amending Ordinance 94 : 650798 The County recognizes that all shares of Southwest have not yet been subscribed to, and based on the history of this Franchise, consents to a Waiver of the Requirements of en o Sections 6 (a) , 9 and all other Sections under o V the heading APPLICATION, as the same may cm o pertain to future sales of Southwest not now v subscribed, provided however, that said future a sales be completed on or before January 31 , o w 1986 , that the information waived herein be 0 3 provided the Clerk to the Board of County o x Commissioners on or before February 14 , 1986 , in q and that said purchasers meet all criteria x required of Weld County Ordinances No. 94 , w94-A and 94-B. mt. a o Section 3 . That the consents and approvals hereby granted oare given pursuant to the terms and provisions of the Franchise, z but do not, however, constitute and shall not be construed to in w constitute a disclaimer or waiver of any rights granted or any co u duties and obligations imposed by the Franchise, except as � z provided herein. CO H N F Section 4 . That he Franchise was duly and legally adopted ~ a and approved by the County, is for a term ending as stated in the w aforesaid Grant of Franchise dated September 15 , 1982 and that o w said Franchise is hereby validated, ratifies and confirmed. taw Section 5. That Southwest shall be controlled at all a gc times during its application for and operation, installation and o maintenance of the System pursuant to the Franchise by any a provisions of the Code of the County relative to cable television a franchises and any such terms of said Code are incorporated herein Nom as if fully restated. o, CO rH CO Section 6. That the sections of this Resolution are mg hereby declared to be severable, and if any section, provision or part hereof shall be held to be unconstitutional of invalid or unenforceable, such section, provision or part shall be fully severable and this Resolution shall be construed and enforced as if such section, provision or part had never comprised a part hereof and the remaining sections , provisions and parts hereof shall remain in full force and effect and shall not be affected by any unconstitutional or invalid or unenforceable section, provision or part or by its severance herefrom. Section 7 . That this Resolution shall become effective upon acceptance of the transfer by Southwest and continue and remain in effect immediately upon its passage, approval and adoption. o The above and foregoing Resolution was, upon motion duly made . and seconded, adopted by the following vote on the 30th day of e v December, A.D. , 1985 . a o a ., ELG o• BOARD OF COUNTY COMMISSIONERS o m A ATTEq k ; WELD COUNTY, COLORADO • ©K v O Weld'Co\u ` li 1tk ,and Recorder °i�`^^-�� wand the , th� Beard, \7 cqu ine J hnson, Chairman-cr r4w By: �Gf� ` EXCUSED g Deputy taunty Clerk Gene R. Brantner, Pro-Tem Ln a APPR(�ED AS TO FORM: /114 co i �� / C. W. K r z f0 6l (9/1/1.1/1-, in H 644t7, County Attorney e+ G drim cn aria a s Yamaguc r U 1:..:. 14. ►t 1i11t K M ak�t� �.:N:. .. The a_•.rd of Directors and Sto-..Kholder Northern Colorado Video, Inc. : We t.ave the haThr a sheet of Northern Co i k-redo Video, Inc. as of hc++eaber 30, 1984 and t:.e related statements of operations, stockholder's equity end =-ges in financial position for the year then ended. Our was :-ade in accordance with generally accepted auditing standards rod, accordingly, included such tests of the accounting records and such other a•iditing pry ed:,:es as we r.•nsidered necessary in the cir",_r.stances. In our opirton, the aforementioned flra:;cial stir.-,,ants F.rer.ent fairly the financial position of Northern Colorado Video, Inc. at ti" ,,eml,er 30, 1984 and the results of its operations and the changes in its financial position for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. -PecLA co . January 11, 1?85 r 0, INC. �' i � �t 30, 1334 As ets (note 4) Cash $ 141,989 Accounts receivable: Trade, net of allowance for doubtful ec otnts of $13,143 95,083 Other 49,680 `0763 Prepaid expenses 17,619 Property and equipment, at cost (note 3) 7,673,506 Less accumulated depreciation (1,839,151) 5,834,355 Otter assets, at cost, net of 3_c :sau'.ated Franchise costs 499,370 Aepcsits and other 28 195 527,565 $ 66661,291 Li `�i l it -s any Stockholder's _lusty Accc.its is able: Trade $ 63,750 Affiliates (note 5) 252880 316,630 Accrued interest payable 132,250 Other accrued expenses 353,056 Subscriber advance payments 25,109 Debt (note 4) 51576,575 Total liabilities 6, 403,620 Stockholder's equity (note 2): C:. :,tun stork, no par value. Authorized 100,000 shares; issued 11 shares (note 4) 677,600 kdditional paid—in capital 3,326,936 Ac ?.ated deficit (3741865) Total stop;host is ';uity 262,671 "rig:tes 5 and 6) $ 6,_S6E.L291. a2 ' n :es ,-o f . '. ... j A1 is. :. : :N r '••; n . 80, ENC. Statr 7.P r!t of 7,;.-e rations Year En ed ?o,.- t>er 30, 1984 Revenue: Basic service $ 1,567,620 Pay TV 1,854,804 Advertising time sales 156,526 Installation and other 311,923 I g90,873 Operating expenses, excluding depreciation and amortization 1,945,172 Selling, general and alministrative 1,216,215 Ma • 3a=went fee (note 5) 150O485 3 3118772 ^icatirg incase before depreciation and s:aortization 578,711 Depreciation 751,288 Amortization 41,749 793 037 ::peatig loss (214,326) Ctler irse C expense : 'ntereat elperse (767,519) 'ne:es.t itvlome 5,850 Cain on disr•.sition of property and equipment, net 112242 (649,427) Net lc ss $ (863753) See accompanying notes to financial Etateaents. :.: .t �.�i f.''1T ' ..►.7U V[Z?p� INC. State ent of Stockholder's Equity Year Fnded Nov..aber 30, 1984 Additional Acck_mu1- Total Ccbmon paid in lated stockholder' s stock capital deficit equity Balance, December 1, 1983 S 675,100 - (214,713) 460,387 Business combination with affil ate (note 2) 2,500 2, 372,400 (2,663, 399) (288,499) Contributions from stockholder - 954,536 - 954,536 Net less - - _ (863 753) _ (863753) z.alarice, huvval%er 30, 1984 5 ¢?7r.6QQ AdiA..9 k (.x_..741$ ) =: 2. 11 See ac^ ;?eying actes to firenc.ial st t•- enis. N,A ,;FN t)0 p ! )F0, INC. Statement of rt ., •zes to Fi;ancial Position Year Er ed N. ,,=ewer 30, 1984 Uses of funds: Net loss $ 863,753 Items which do not (use) provide funds: Depreciation and amortization (793,037) Gain on disposition of property and ,>qufeiaent, net 112 242 Funds used in operations 182,958 Additions to property and equi;,meat 842,136 Net stockholder's deficit resulting Icon: business c.sbination with affiliate 288,499 R,,;a)ment and retirement of debt 610,700 Increase in accounts receivable 124,783 increase in prepaid expenses 8,426 Increase in other assets (1,062 ',U63 564 S- rtes of funds: Net liabilities resulting from b.siness combinations with affiliates: Debt 5, 588,075 Property and equipment (4,813,338) Francl ise costs (529,544) a,sC ( t�t�,e r :s 13 259) ..L._.2T1,93 Retiremer s of property and ecu.i; ent 451,468 Contributions from stockholder 954,536 Increase in accounts payable 164,781 Increase in accrued interest pa_sble 119,559 increase in other accrued expenses 252,248 Increase in subscriber advance pa;-ments 14248 2 188. 774 Increase in cash f See accompaeyin8 notes to financial statements. ' L r? v : r.Q, !NC. Notes to Financial Stst o-nts ho-,,eatiber 30, 1984 (1) So:,.ary of Significant Ac!ountiog Policies (a) General --- ___ Northern Colorado Video, Inc. (the Company) was organized for the purpose of constructing and operating cable television systems in northern Colorado. During 1984, the Company's fiscal year--end was changed from August 31 to tip.oe giber 30. (b) Property and ,Fquik,uent Property and equip-lent is stated at cost. Depreciation is computed using the straight-line method over esti7:ated useful lives which range from 4 to 12 years for equip,4=nt and 15 years for leasehold i.isl•rc .?ar?A.t s. D%1ring the p:e atur1ty period of construction, the Company capitalized certain costs, incoiing depreciation, relating to current operatt:r:s. T`,e pr,,-%aturity period is :;eftned as the period from the '.:.st.al la tion of the f'• r st sols. r`:'er until construction of the system is su,sta*_tiaily ?te. :'':•:ae c...sts are being depreciated using the straight-.line -.,'.hod over a .v-;-ear life and are included in property and P..S1p..-nt as defe:red presciturity costs. Rspairs and mainte-.a:.=e are charged to operations and renewals and additions are capitalized. At the time of ordinary retirements, sales or other dispositions of property, the depreciated cost and cost of :ew val of such property are charged to the reserve for depreciation, and salvage, if any, is credited thereto. Gains or losses are re.:ogr,ized only in co'.nection with major rebuilds or with the sale of properties in their entirety. (c) Other Assets Franchise costs related to the operating cable system are being amortized over the lives of the franchises ranging from 10 to 15 years, using the straight-line method. (d) .in..:me Taxes T'a Coapany and its 'n.kholder have elected, under the provisions of Sabo.',.apter S of the ':'ernal Revenue Code, to have profits and losses e:•�•vrt .d directly by t-.e stockholder for i'n:ame tax pt,rp:ses. (2) loin, ss with Affiliates Effective :;".-nlary 1,-184, Gr-=e:ey t: eo, Toc. (Greeley Video), an affili- ated o.vany, was r_ : ed with the Coo .any. The Company And Greeley Video -.ad the s .,,,e yf e : .':.older and, acco_dirgiy, the ccsli-ration was (Continued) 2 N .K ; 'kh (1%C;ADO [DE0, INC. Ntes to Financial Stat-4ents accounted for in a �ar,ner aimilar to a pooling of interests and was traated as a nontaxable transfer for income tax purposes. The Company issued one share of its c , mon stock for all of Greeley Video's outstanding common shares, which .ere subsequently cancelled. The acco panying statement of operations has been prepared as if the cc 'htnation was co 3tiated on December 1, 1983 and include the operations of both the Company and Greeley Video since that date. Separate financial ir,for..ation for the oaa-month period prior to the 'ate of the rJ7biration is as follows: Northern Cc1vrado Greeley Video, ?nc_ Viieo Inc. ,e $ ti2 '92 25441 Net '_ 3s $(2$. 433) Fro : v-"na .'Cd f—ancial information for the Company and :ey ViGeo or the y,-'ar r' :ed N .amber 30, 1983 is as follows: F..e.anue $ 3X75_635 :et 1 ss $ _C119.4 38) I G ,,,section with the af,:er:anti'.�nned c:.m tt_:etion, the C:-.mr any'S note :able to C- eley Video in the amount of $599,200 was cancelled. Effective Fe:•_-.:ary 1, 1984, the C r_ .n a_,,,i'ed the assets and assumed the liabilities of T ri-T nwn rabl a Yi s _In, Ltd. (Tri-T own), an affiliated 'xited partnership. The acquisition °.:as accounted for using the purchase .:mot}od of accounting and the .;peratini.s of :ri-TJwn since the purchase ',ate are included in the accompanying statement of operations. The purchase price totaled approximately $814,000 and was c >mp'rised of $278,000 in cash and the ass4mption of approximately $536,000 of met liabilities of Tri-_Town. The excess of the purchase price over the fair v=.ue of the net tangible assets acquired was allocated to franchise costs -.d will be •-mort ized ter an 11-year period. (3) F_ .earty and ''g-7j nt F. , ,<<y 1-„ ri` . :Lt at N_ .Tmber 30, 1934, is summarized as follows: FaL-ii-g, T'-ssion and r;-t ri'),.,r1 ,- jn nt $ 7,198,935 r' t 415,484 7-far ad i _, ity --ts »8,781 •r: • --.ts 103336 $ 7 .673. 5)6 '- mod) 3 COLCF.ADO VIDEO, INC. Notes to Financial Statements Property and equipment at November 30, 1984 includes $72, 323 of interest capitalized during the construction stage of development. Interest costs totaled $767,519 for the year ended November 30, 1984. (4) D bt ^:rht at N._-;,?-$her 30 consists of the fol.l'.;,rirg: Note ;.dyable to hack with interest payable quarterly at prise plus 1-1/4% (1-1/2% after July 1, 1985) and principal payable in graduated quarterly Installments commencing June 30, 1985 with the final installment due March 31, 1991 $ 5,200,000 Note payable to bank with interest payable quarterly at prime plus 2% and principal payable in graiL:ated quarterly installments with the final installment due March 31, 1991 376,575 $ 5,,576,575 The :`.c_ re c:;:es payable are secured by substantially all of the assets and c.:Armon stc.c.k of the Ccap.any and are guaranteed by the stockholder of the Principe: *.atL:ities for ;bars after F.,:vt.be: 30, 1984 are as follows: :985 $ 171,800 =386 520, 550 1387 .1,049,850 1388 1, 372,250 1y89 1, '58,330 1390 and the7eafter 1.:.303,825 $ . ,5'G, 75 (5) Transactions with Affiliates and Stockholder TheC.npany has a marsgewent agreement with Daniels 6 Associates, Inc. (D&A), an affiliated company, whereby NA provides certain administrative and msnag=:tent services to the Company. As co+rpe sation for these se vices, the C mpa.ny pays a fee equal to the greater of 4% of its gross reeipts ,s defined in the agr-event, or $25,000 per year, plus reimb r,e. ent of out-of-;.c' ket emp=-:sea. Included it s.:.c7: mtS payable — affiliates is a $96,000 ,,o interest b aring 3':ance fI -"2 an affiliate ,*hick was ess.. ?d upon the atq':{sition of (Continued) 4 Viu .n, INC. Notes to Financial statements The (.. p any ]eases office pace on a ?unth-to•-month basis from an affiliate. Lease ;,ayzents for the year en.'.ed November 30, 1984 totaled approximately $156,100. Included in accounts payable - affiliates is $78,000 of lease pay.ents due l,-.der the lease agree:Lents. - (6) Co•Nit z.ents and Cont.irgrnr•ies ec The paay leases certain real property, transportation and office eq' i, lent under n• �•:aflc a1 i able operating le.3aes with original terms varying from 3 to 10 years. '..rase payzents, excluding =...:.ounts paid to affiliates, for the year en'ed !, e-o er 30, 1984 totaled approximately $85,900, including $26,400 paid wider pole rental agree tints which are te:n•ir,eble on short notice by ett'.er party. Future ,7;in.'.mua Ise r : �.�cts �' 'er sca'- tillable 1 ,es as of ti�::i'er 30, 1984 are s f,,':'. ; :s: :385 $35,500; 1986 $24,800; 1987 - $21 . 0 1388 - $8,000; 89 - t' v a•:, � 2 � ,-se of '��• ',r- ,,d •Ay _,`��Q• r:��tvent expects that in the t••.a r.,, _:: s .: ._:_s t'-•at spire will be .,.. red or replaced byt-.er :eases. A<=._o; "-g1y :;al ; .,.i-,,.;-nts after 19°4 are not tgi=ected to decrease. The !•.•z .any has ette:ed into _s, ...,tents for r.rc=gmi g services which are te;3•.ioable on short ootice. ca:me nts are based upon the number of subscr'1-.ers served by the and totaled apri ror Late,�y $923,900 for the :for enced N; ecber 30, 11984. Management anticipates that payments under these agreements will not iecrease after 1984. NORTHERN COLORADO VIDEO, INC. FINANCIAL STATEMENTS Eleven N)nths Ended Octo` -Pr 31, 1985 (Prepared Without Audit) y "1 .r.+.( • DFL, !4E. ,''rtR':JE si *tT 10/31-85 ASSETS Ca.RKNT PR I OR PERIOD YEAR-END CA91 317,123 214,331 ACMIXTS REcEIc .E-TRADE 117,273 99,345 ACU 1.hTS BEGET&E-OT-ER 57,423 49,680 PREPAID EXP9 SE 23,061 17,619 F`«Y.. ERTY,PJ 4T 41) £X:?!ENT 7,966,162 7,673,505 q 11J1ED DJ'€C!ATIIIN (2,558,209) (1,839,151) €1 ;�?DPt;�TY, 4ttT �L' ►_x1.P 5,407,953 5,834,354 f +ISE 457,328 499,370 OR`,ANIZATI?i C,.STS 1,640 2,355 LOAN u.5TS 4,562 5,519 EIX S1TS 20,322 20,322 6,406,685 6,742,895 SEE ►[TES TO F:'+ ALS INC. ' pTiUE YOKE SHEET 10/31/85 ;�"y NITOJT AUDIT] LIABILITIES AND EQUITY C.SREHT PRIOR PERIOD YEAR-END ACCCIHTS PAYABLE-TRADE 112,564 273,286 ACCOUNTS PAYABLE-OTHER 210 96,000 ACCRUED INTEREST 56,385 132,250 CRIED EXPOSES 313,111 378,072 c)Pc'RIBER ADVANCE PAY1ENTS 10,392 12,463 DEFERRED INCOME 497 O&ERTER aLro3ITS 20,590 11,070 DEBT 5,404,775 5,576,575 TOTAL LIABILITIES 5,918,027 6,480,213 STORGULARS' EQ)ITY CAPITAL STOCK,NO PAR; 100,000 %ARES AUTHORIZED 10 SHARES I SS)ED ANC DITTSTANDING 677,600 677,600 ADDITIONAL PAID-IN-CAPITAL 3,919,936 3,326,936 RETAINED EARNINGS (4,108,879) (3,741,855) TOTAL STOCIOCL ERS' EQUITY 488,657 262,681 6,406,684 6,742,894 SEE NOTES TO FINANCIALS 4) -t." ). •)G ...,')E0. INC. 747 71E VT 1 }'_;,',T:) :IHC RE': N _ €GS FOP Tf 2X COED 10/31 '6.5 ;'RE. w'-al UD I T) OJPRENT .1TM YEAR TO DATE _C)6ET Al?'.1AL ACTUAL BUDGET ANNUAL BUDGET 417,847 363,372 TOTAL REVENUE 3,789,060 4,127,674 4,550,753 243,729 292,280 TOTAL EXPENSE 2,670,056 2,730,936 2,979,101 174,118 71,092 OPERATING INCOME(LOSS) 1,119,004 1,396,738 1,571,652 65,826 66,939 DEPRECIATION 705,678 716,286 782,112 3,974 3,974 AMORTIZATION 43,714 43,714 47,688 566,884 51,349 INTEREST EXPENSE 599,158 644,859 703,743 16,707 13,604 ttd GE.'ENT EXPENSE 141,818 165,033 181,950 (1,131) INTEREST INCOME (5,319) 635 74 VtiklYENT TRAVEL 980 8,251 9,097 ' 892 (63,717) NET I►E7£(LOSS) (367,025) (181,405) (152,938) BEGINNING RETAINED EARNINGS (3,741,855) RETAINED EARNINGS (4,108,880) SEE NOTES TO i I►4ANC I ALS t; 4,.-N 1 -c:,.C v;'1k0 .Hl.. rdE .-:;!]0 .-ADILD 10/31/85 : 'fD 11 i► IT AUDIT] CURRENT ? MMTN-- CiRRE7TT YEAR WIDGET ACTUAL ACTUAL BUDGET ANN!]AL BLO ET SOURCE OF FTLIOS: 27,892 -63,718 NET INCOME (LOSS) -367,024 -181,405 -152,938 65,826 66,939 DEPRECIATION 705,678 716,286 782,112 3,974 3,974 AMORTIZATION 43,714 43,714 47,688 -166 DEFERRED INCOI( -497 -1,826 -1,992 97,526 7,195 F)CS FROM OPERATIONS 381,871 576,769 674,870 3,400 6$ IE PAS 13,380 ]CI DS FROM DEBT 450,000 450,000 aEID1TI)'iA. PAID-IN CA 593,000 97,526 10,595 TOTAL SOURCE OF FUNDS 988,251 1,026,769 1,124,870 LSE OF WS: S: 1,409 19,424 CAPITAL EXPENDITURES 292,658 371,467 372,876 OrNER ASSETS 6,100 PAYMENTS OF DEBT 171,800 271,800 471,800 1,409 25,524 TOTAL USE OF nJOS 464,458 643,267 844,676 C w6ES IN WORKING CAPITAL: -4,129 3,071 4CrC3J4TS REC-TRADE -17,927 -35,354 -39,610 5,676 AC .A,JITS REC-OTTER -7,743 4,988 3,416 PREPAID E)(PE?+SE -5,442 -2,692 7,796 -28,740 30,822 ACCDIJ(TS PAY-TRADE -160,722 -347,290 -345,810 11,283 -71,017 ACCRED EXPENSE -64,961 -5,465 5,604 58,884 40,674 ACCED INTEREST -75,865 -73,361 -14,477 WW1) INTEREST 1,297 crs.RTOR DEPOSIT 9,520 13,829 14,902 528 -9,513 SLOSSCRIBER AOU PAY -2,072 4,940 5,476 90 AC3J4TS PAY-OTHER -95,790 2 OT)#R 2 -2 -1 44,103 3,221 TOTAL C-IAN6E -421,000 -445,395 -366,120 140,220 -11,708 FIGS INCREASE (-) 102,793 -61,893 -85,926 12,217 328,831 BF-SINNING 214,330 214,330 214,330 152,437 317,123 CASH-ENDING 317,123 152,437 128,404 x'E NOTES TO F IVr I ALS ;;y ,: r, -, C:,:)D c)F0, :NC. :if-4:C:k DMMT OF LrEkATIONS FOG :-E '_r,iI ENDED 10.31'85 .7ieL-:.?a s,T-0UT AUDIT) CURRENT MONTH YEAR TO DATE LAST YEAR BUDGET C$RENT YEAR CURRENT YEAR BUDGET LAST YEAR ANWAL BUDGET REVENIE 285,104 337,083 296,312 SERVICE 1NCOIE 3,158,710 3,365,184 2,881,685 3,707,666 10,122 12,800 13,933 EQUIPMENT RENTAL 128,312 127,272 84,952 140,472 23,518 14,646 18,443 CONNECTION INCOtE 135,797 144,262 102,826 156,146 ORIGINATION INCOIE 30 23,482 29,800 12,779 ADVERTISING INCONE 157,397 246,350 135,557 278,150 12,442 13,652 12,503 REIMBURSED FEES 131,092 141,580 35,692 155,327 5,707 7,300 5,796 GUIDE INCOME 63,784 74,800 15,008 82,200 6,313 2,566 3,605 OTPER 13,967 28,226 27,468 30,792 366,688 417,847 363,371 TOTAL REJEN.E 3,789,059 4,127,674 3,283,218 4,550,753 DD'D& 143,256 135,648 151,411 OPERATING EXPENSE 1,440,633 1,448,347 1,462,273 1,586,649 14,241 12,770 15,325 ORIGINATION EGENSE 138,631 147,515 118,287 161,577 5,749 6,920 7,074 ADVERTISING EXPENSE 61,223 69,699 46,503 77,187 116,804 88,391 116,470 GEIERAL 6 ADHIN EXPENSE 1,029,569 1,065,375 1,036,909 1,153,688 180.050 243,729 292,290 TOTAL EXPENSE 2,670,056 2,730,936 2,663,972 2,979,101 96,138 124,118 71,091 TOTAL CRSrfLOY 1,119,003 1,396,738 619,246 1,571,652 61,716 65,826 66,939 DEPRECIATION 705,678 716,286 617,657 782,112 3,844 3,974 3,974 AMORTIZATION 43,714 43,714 36,358 47,688 66,191 58,884 51,349 INTEREST DO'ENSE 599,158 644,859 650,038 703,743 13,185 16,707 13,604 lfrfiGE ENT EXPENSE 141,818 165,033 123,388 181,950 (21) (1,131) INTEREST MOTE (5,319) (5,832) 28.400 CONVERTER LOSSES 28,400 135 835 74 NVAAGDENT TRAVEL 980 8,251 2,688 9,097 (88,812) 27,892 (63,718) NET 1 CO E(LOSS) (367,026) (181,405) (833,451) (152,938) SEE NOTES TO FINANCIALS s c. 'r3R -€ P.._ .C .?r ': :: B5 .. 2"rAtE - O!T1 CiRRENT MONTH YEAR TO DATE ANNUAL LAST YEAR FIDGET CRtENT YEAR CURRENT YEAR BUDGET LAST YEAR BUDGET z z z z z z 15783 4.3 17590 4.2 19046 5.2 SALARIES 184965 4.9 190389 4.6 160003 4.9 208979 4840 1.3 1400 .3 5314 1.5 C;JERTIrE 16708 .5 15550 .4 20859 .6 16750 92 SALARIES-C)4J INSTAL 207 250 .1 1135 .3 SA. EIS-DAB RETRIE 3330 .1 3200 .1 595 3450 -2286 -.6 -1409 -.3 -2808 -.8 CAPITALl2EO SALARIES -17040 -.4 -17298 -.4 -16721 -.5 -18707 1548 .4 6248 1.7 CONTRACT LABOR 16343 .4 13700 .3 28267 .9 13700 CUNT L 1R-CONJ RETR 170 60 2106 .6 1732 .4 2521 .7 PAYROLL TAXES 18277 .5 18825 .5 16699 .5 20629 662 .2 1231 .3 690 .2 1NSUR..ANCE-E1PL.OYEES 6000 .2 13386 .3 10751 .3 14617 374 .1 539 .1 473 .1 INSURICE-COMP. 4185 .1 5858 .1 4044 .1 6397 50 TRA.€L d ENTER. 132 650 407 700 3361 .9 2416 .6 2061 .6 LEASED JENiCLES 30118 .8 31669 .8 34749 1.1 34085 1297 .4 2340 .6 3299 .9 UEHIEIE OPERATION 26304 .7 25740 .6 19658 .6 28080 1856 .5 2260 .5 6152 1.7 REPAIRS 6 'KINT. 22097 .6 25080 .6 19265 .6 27360 1410 .4 2896 .7 6122 1.7 CONYERTEF SINT. 37172 1.0 31856 .8 27392 .8 34752 82 100 219 .1 EJL.171ENT RENT 2307 .1 2300 .1 589 2400 3173 .9 2000 .5 4867 1.3 POLE RENT 41897 1.1 27400 .7 29737 .9 29400 106 97 TOLD SITE RENT 1164 1100 873 1200 1541 .4 1664 .4 1548 .4 LIGHT,NEAT 6 DER 1t483 .4 18304 .4 15081 .5 19968 14811 4.0 15501 3.7 15441 4.2 FTRACNISE FEES 156942 4.1 154716 3.7 141170 4.3 170474 902 1.3 4902 1.2 7346 2.0 PROPERTY TAX 80807 2.1 53922 1.3 48348 1.5 58824 210 .1 225 .1 210 .1F TRENT 2320 .1 2475 .1 4979 .2 2706 179 175 124 JN)FORP' EXPENSE 2017 .1 1925 1644 .1 2100 64862 23.1 75921 16.2 67652 18.6 P'.% r COSTS 755820 19.9 791648 19.2 667366 26.4 8t9049 nISCF_AlltS 75 2542 .7 3745 .9 3560 1.6 COP P! tiT FEE 27934 .7 35952 .9 26256 .8 39242 ----- ---- -- ------ ------- ------ 1<'258 39.1 135548 32.5 151409 41.7 OPERATP6 EXPENSE 1440634 38.0 1448347 35.1 1462275 44.5 1566649 366688 100.0 417947 100.0 363372 100.0 TOTAL Ceil 3789060 100.0 4127674 106.0 3283219 100.0 4550753 SEE NOTES TO FINANCIALS 0+. `l f (Y_. t,;TIE, :IC. ?';;;*'::>+ Ex-51,6E FS T1 Mme;3C E:OED 10'3:155 Lfri ' *irAOUT AUDIT] C:RRD$T !OWN SIR TO DATE ANNUAL LAST YEAR &.ACET CURRENT YEAR CYRENT YEAR R 1YFT LAST YEAR BUDGET z x z z x x 8279 4.3 7640 3.2 9528 4.1 SALARIES 88368 4.0 89850 3.9 64530 4.0 98590 225 .1 585 .2 554 .2 CILERTIl£ CORP. 4020 .2 4875 .2 5474 .3 5460 TIME SALES SALARIES -289 185 .1 105 CONT LABOR-TA SALE 178 185 CONTRACT LABOR 347 921 .5 740 .3 919 .4 PAYROLL TAXES 8292 .4 8526 .4 6645 .4 9365 464 .2 617 .3 576 .2 fl&$ CE-EIPLOYEE 5410 .2 7102 .3 3591 .2 7801 82 237 .1 lNSt. CE-COtc. 1536 .1 946 1039 1500 .8 1500 .6 1500 .6 STUDIO RENT 16500 .7 16500 .7 15000 .9 18000 EALIIP1ENT RENT 350 1103 .1 350 635 .3 500 .2 605 .3 FAIRS I t1A1NT. 2746 .1 7000 .3 5589 .4 7500 25 FKIGHT i POSTAGE 72 275 332 300 DOES S SUBSCRIPTION 30 200 80 200 305 .2 306 .1 306 .1 LEASED UENICLES 3697 .2 3366 .1 3810 .2 3672 189 .1 150 .1 115 VEHICLE OPERATION 1105 1650 .1 782 1800 25 TRAVEL & ENTER. 25 275 297 300 30 TIME ABM d E 22 331 M,LpLANEOl1S 168 1508 .8 600 .3 881 .4 STWIC SUPPLIES 6285 .3 6600 .3 10660 .7 7200 '241 7.4 12770 5.4 15326 6.6 ORIGINATION EXPENSE 138633 6.2 147515 6.4 118288 7.4 161577 191218 100.0 238222 100.0 233326 100.0 TCTA. REVENUE 2224773 100.0 2313725 100.0 1544286 100.0 2552040 SEE NOTES TO FINANCIALS 43. ;,:., 1r<,r. -*C, :NE. DR THE ,j%:x ;,40,I. 10'3: E5 1 T,C5iPEC W.-40u- AUDIT; _ EN.. MONTH YEAR TC DATE AtMAL ...AST YEAR BUDGET _.PRENT YEAR CURRENT YEAR BUDGET LAST YEAR BUDGET 1076 4.6 109C 3.7 SALARIES 6286 4.0 11909 4.8 3977 2.9 12999 50 .4 STUDIO SUPPLIES 119 .1 131 .1 4367 18.6 4200 14.1 4245 33.2 THE SALE SALARIES 40244 25.6 39600 16.1 36047 26.7 44300 400 1.3 MINT LABOR-TILE SALE 633 .4 3650 1.5 452 .3 4100 476 1.6 380 3.0 PAYROLL TAXES 4120 2.6 4635 1.9 260 .2 5156 137 .6 185 .6 168 1.3 1NSFANCE-EMPLOYEE 1723 1.1 1803 .7 1103 .8 2006 53 .2 24 .2 II6ORAKE-COMP. 154 .1 516 .2 574 REPAIRS d MAINT. 21 40 .1 22 .2 FRfGNT 6 POSTAGE 308 .2 440 .2 60 480 60 .3 DUES 6 SUBSCRIPTION 520 .2 967 .7 520 15 .1 135 .5 42 .3 VEHICLE OPERATION 663 .4 1485 .6 15 1620 TRA<1EL S ENTER. 195 .1 75 .3 50 .4 TI'E SALES T & E 1266 .8 1335 .5 76 .1 1410 166 .6 2093 16.4 BAD DEBT EXPENSE 4978 3.2 1826 .7 875 .6 1992 MiS:ELSCOUS 62 54 94 .4 100 .3 STUDIO SUPPLIES 453 .3 1980 .8 2485 1.8 2030 5'49 24.5 6920 23.2 7074 55.4 ADUERT'.S`.NG EXPENSE 61225 39.0 69699 28.3 46502 34.4 77187 23440 100.0 29800 100.0 12779 100.0 TOTAL REVENUE 157184 100.0 246350 100.0 135246 100.0 278150 ........ ..... ...' _ • __,._, .__.,. ........ ...... ........ ...... ........ ._.... ....„_- SEE NOTES TO FIPWCIALS &s- !1_Rs .--cc rz C. ;:-C7-AL & :', ;-V rrti Fs '...E ....F'I {'D 10 1; '85 kr Pr',. ''4JAI:. tIDITI CtJQRENT STN YEAR TO DATE ANHIWL LAST YEAR RAGE! COPRENT YEAR 0221NT YEAR BUDGET LAST YEAR BLDGET % % % % % % 16490 4.5 12460 3.0 15286 4.2 S4 .* E.S 162395 4.3 152790 3.7 152298 4.6 168050 1598 .4 1000 .2 1106 .3 OVERTir£ 12251 .3 11000 .3 11719 .4 12000 15444 4.2 11900 2.8 15862 4.4 SALES CJPE'!SATION 101629 2.7 131180 3.2 120726 3.7 140180 2982 .8 2000 .5 1196 .3 rARxETING SALARIES 25344 .7 25710 .6 26953 .8 28710 325 .1 35 SALARIES-LATE PAY CO 1591 3575 .1 3900 1312 .4 825 .2 1371 .4 CONTRACT SERVICES 11808 .3 11303 .3 22490 .7 12128 4468 1.2 2492 .6 3345 .9 PAYROLL TAXES 26952 .7 29184 .7 31610 1.0 31757 994 .3 1357 .3 935 .3 ,NSJRAtCE-EMPLOYEE 14045 .4 15889 .4 12639 .4 17246 125 152 450 .1 l!&•RANICE-Mr1P. 3288 .1 1783 1480 1935 2328 .6 2794 .7 7065 1.9 DriPA'CE- NERAL 38389 1.0 30734 .7 19395 .6 33528 5313 1.4 5403 1.3 7612 2.1 DP DIST-PROCESSING 61108 1.6 56259 1.4 53300 1.6 61727 270 .1 DP COST-Et7JIP RENTAL 2324 .1 1350 2757 .1 1350 185 .1 225 .1 332 .1 PAYRI.L PRI1551HG 2985 .1 2475 .1 2620 .1 2700 6212 1.7 2235 .5 2721 .7 TE..EP-!?E 30394 .8 26985 .7 31670 1.0 29220 12439 3.4 12439 3.0 12289 3.4 OFFICE RENT 136565 3.6 136829 3.3 123626 3.8 149268 1948 .5 1800 .4 1390 .4 L!94T,ffAT, a PIER 18378 .5 20500 .5 17851 .5 22200 533 .1 415 .1 699 .2 E J PENT RENT 4780 .1 2815 .1 3850 .1 2980 6171 1.7 2146 .5 2179 .6 OFFICE ST-PLIES 16628 .4 22515 .5 27091 .8 24687 3176 .9 4065 1.0 1926 .5 FRE1 IT I ?CSTAGE 36884 1.0 44715 1.1 39234 1.2 48780 138 625 .1 1658 .5 TA>ES I Liti5ES 5563 .1 6875 .2 2332 .1 7500 245 .1 742 .2 695 .2 )J3 I x.E R:ATION 8172 .2 8168 .2 7585 .2 8910 193 39 CON:2EUT1?4S 749 2868 .1 243? .1 3061 _732 .7 500 .1 405 .1 LEGAL 35823 .9 36500 .9 39691 1.2 37000 1313 .4 2068 .5 1400 .4 Ai.DIT(TAX 14180 .4 22748 .6 20516 .6 24816 311 .1 315 .1 311 .1 LEASED to!CL1_S 3523 .1 3465 .1 4149 .1 3780 40 165 198 .1 VEHICLE JERATION 2236 .1 1815 915 1980 1348 .4 392 .1 2838 .8 TRAVEL I LODGING 12086 .3 6172 .1 4541 .1 6444 15411 4.2 8034 1.9 17421 4.8 AWERTISIM6 DI'ONSE 108058 2.9 127547 3.1 163243 5.0 134797 5260 1.4 8354 2.0 14.286 4.1 BAD DEBT EXPENSE 99392 2.6 82518 2.0 61281 1.9 90976 6912 1.9 1825 .4 1542 .4 REPAIRS I '1AINT. 15542 .4 20825 .5 20360 .6 22650 RETAIL OPERATION TRA 621 38 6 MISCELLANEOUS 27 158 1067 .3 1145 .3 1373 .4 EMPLOYEE BENEFITS 16480 .4 I8283 .4 7571 .2 19428 116803 31.9 88391 21.2 118471 32.6 GENERAL I ADM IN 1029569 27.2 1065375 25.8 1036909 31.6 1153688 366688 100.0 417847 100.0 363372 100.0 TOTAL REc>ENE 3789060 100.0 4127674 100.0 3283219 100.0 4550753 SEc NOTES TO FINANCIALS BPS!. M ..(2-41.. i;t'JR- E JR THE PER'.OC =ti EC 10-'31 '85 IPRE" S u';',i0u- AUDIT1 CURRENT 04TH YERR TO DATE LAST YEAR BUDGET CUR YEAR CUR YEAR BUDGET LAST YEAR Ala BUDGET BASIC SUBSCRIBERS 13798 14698 13346 BEGINNING 13893 13902 2492 13902 698 753 854 NEW CONNECTS 5911 7417 17886 8028 -552 -544 -459 URFT fTl3N51 -6063 -6412 -6434 -6874 13944 14907 13741 ENDING 13741 14907 13944 15056 BASIC REVEt.JE 133074 167258 179045 SEJ!CE 1NCDrE 1751607 1797585 1327999 1987107 10122 12800 13933 EDU1?!E.NT RENTAL 128312 127272 84952 140472 23518 14646 18443 CONNECT ICE 135797 144262 102826 156146 ORiGRWTlOh REJE141 30 23482 29800 12779 iI!E SALES-LOCAL 157397 246350 135557 278150 12442 13652 12503 REIMS. FRO &C(PYR 131092 141580 35692 155327 5707 7300 5796 GUIDE DOE 63784 74800 15008 82200 6313 2566 3605 NISCELLAN DU5 INCOME 13967 28226 27468 30792 214658 268022 246104 TOTAL BASIC COLE 2381956 2560875 1729532 2830194 13871 14803 13544 AUERA&E SUBS 13472 14187 13434 14187 146 209 395 !ET GAIN/LOSS -152 1005 11452 1154 0.49 0.70 1.33 BASIC ?DURATION % 46.31 50.00 46.99 50.50 -3.98 -3.68 -3.39 CHURN % -45.00 -45.20 -47.89 -48.45 9.59 12.65 13.22 AUG REJENUEi5E 130.01 126.71 98.86 1 140.07 SEE NOTES TB F!P*CIALS Vs riE _ A, 2fl 11531;85 ;Fr;_ ^I '4174)U7 A.IDIT) C 5eiT 04TH YEAR TO DATE LAST YEAR BUDGET CF YEAR CS YEAR BUDGET LAST YEAR ANNUAL BUDGET PAY '.HITS 20034 19901 16326 BEGINNING 19746 19676 4126 19676 1726 1399 1288 NEW CONNECTS 9870 14182 37026 15526 -1536 -967 -792 (REDUCTIONS) -12794 -13525 -20928 -14456 20224 20333 16822 EHD:1€ 16822 20333 20224 20746 PAY REVENLE 152029 149825 117267 SERVICE 101E 1407103 1567599 1553687 1720559 152029 149825 117267 TOTAL PAY REVENUE 1407103 1567599 153687 1720559 20129 20117 16571 AVERAGE UNITS 17649 19246 19968 19246 190 432 490 NET GAIN/LOSS -2924 657 16098 1070 1.36 2.90 3.57 PAY PENETRATION % 122.38 136.40 145.04 137.79 -7.63 -4.81 -4.78 NJ% % -72.49 -70.27 -104.81 -75.11 7.55 7.45 7.08 AVG REVENUE/UNITS 79.73 81.45 77.81 $ 89.40 SEE NOTES TO FINANCIALS ^0.--r_ 'AC ''AD * ic 'JRT FOR TAE 2 R[JC E1iED 10/31/85 (PREPARED Y;T'OiT A.DITI C53041 NDNTN YEAR TO DATE LAST YEAR BUDGET CUR YEAR CLE YEAR BUDGET LAST YEAR A 1tAL BUDGET 480 (HITS 8340 8363 7418 BEGINNING 8334 8331 1702 8331 597 537 597 NEW COMETS 3928 5131 11800 5625 -519 -343 -373 (REDUCTIONS) -4620 -4905 -5084 -5239 8418 8557 7642 ENDING 7642 8557 8418 8717 !M RE.U&.E 65763 65903 54105 SERVICE )NOME 631412 694540 677929 761822 ---- ---------- --------- 65763 65903 54105 TOTAL HBO REUENtE 631412 694540 677929 76;822 8379 8460 7530 At.ERAGE NITS 7720 8149 8331 8149 78 194 224 PET GAIN/LOSS -692 226 6716 386 0.56 1.30 1.63 PENETRATION % 55.61 57.40 60.37 57.90 -6.19 -4.05 -4.95 CAIRN % -59.84 -60.19 -61.02 -64.29 7.85 7.79 7.19 AVG RECeiLfU 4IT 81.79 85.23 81.37 3 93.49 SEE NDTE5 TO f4ANCIALS i +.-'r 7.C I. }C 1::F. 7# r4:.'(:JC c,'OED It/31/85 i 'iEC 117-ULIT ' .U1T] C RRENT '11TH YEAR TO DATE LAST YEAR 9LOGET WR YEAR WR YEAR &AGET LAST YEAR ANNaAL BUDGET 1OVIE C*W€. UNITS 9ES1*ING 1230 SEW fONPAECTS 8847 (REDICT 1 ONS) -10077 r'01N6 r V1E Note REAM SERVICE I►4.-�'E 429885 TOTAL PIXIE DOW_ 429885 0 0 0 PJESKEttlIT5 0 0 0 0 I I I NET GAIN/LOSS 0 0 -1230 0 0.00 1.00 0.00 PENETRATION % 0.00 0.00 0.00 0.00 0.00 0.00 0.00 MRS % 0.00 0.00 0.00 0.00 0.00 0.00 0.00 AUG REUEIiE/'iNIT 0.00 0.00 0.00 8 0.00 SEE NOTES TO FINANCIALS LE ;tsstT cDR Fr _" O ".`(€D 10 31/85 Li\e YITNUUT AUDIT) GWENT Oa YEAR TO DATE LAST YEAR 3DIT CUR YEAR CS YEAR BUDGET LAST YEAR WWI BUDGET PLAYBOY LNITS 1904 1367 1172 BEGI*IIE 1810 1756 475 1756 178 186 143 P6 CONECTS 1100 1930 3878 2124 -213 -152 -125 tREDLCTIO6) -1720 -2285 -2484 -2435 1869 1401 1190 EIDIK 1190 1401 1869 1445 PLAYBOY RE.El1E 12667 9439 7774 SERVICE 'JOE 96164 101721 148213 111426 12667 9439 7774 TOTAL. PLAYBOY REEMJ 96164 101721 148213 111426 .......... ..,....... 1887 1384 1178 AVERAGE UNITS 1350 1360 2052 1360 -35 34 12 PET GAIN/LOSS -620 -355 1394 -311 -0.25 0.23 0.19 PE)ETRATIO1 R 8.62 9.40 13.40 9.60 -11.29 -10.98 -10.61 Dtfi4 % -127.41 -168.01 -121.05 -179.04 6.71 6.82 6.60 AVG REUENJE/UNIT 71.23 74.79 72.22 1 81.93 SEE NOTES TO F: C)ALS rx ;.R 4i.?.1RT r;JR T{ r'9, ::1C E{€D 10/31/85 I F ,IAREC wITHOuT D I T 1 • C•cc T MONTH �p �yYEAAR TO DATE LAST YEAR 2t1 E T CS CPR C.P. 1 C1 R &EGE 1 LAST Y YEAR BUDGET CUCIAX UNITS 6637 6555 4900 BEGINNING 6520 6510 6510 767 403 390 NEW CELTS 2980 4162 7900 4562 -609 -295 -120 (REDUCTIONS) -4330 -4009 -1105 -4282 6795 6663 5170 ENDING 5170 6663 6795 6790 • . u... C I PCIAX R£JE& 52352 49568 36551 SERVICE INCOME 458707 515747 77245 566200 52352 49568 3c551 TO:AL ESNEmAx REJD4J 458707 515747 77245 566200 6716 6609 5835 AVERAGE UNITS 5596 6290 1391 6290 158 108 270 NET GAIN/LOSS -1350 153 6795 280 1.13 0.72 1.96 PENETRATION % 37.62 44.70 48.73 45.10 -9.07 -4.46 -2.38 D.0 % -77.38 -63.74 -79.44 -68.08 7.80 7.50 7.26 AVG W5-4E/UNIT 81.98 81.99 55.53 $ 90.02 SEE r4iTE5 To FitiANCIALS 1 .k.-1 i`v�-' v A F3 Tr( ; :'w . £ .ED 10. 31,O V5 IPRLARED wIrICLT 4101 C:lRRE T CNTH YEAR TO DATE LAST YEAR MET CUR YEAR C$ YEAR BUDGET LAST YEAR ANNJAL BUDGET DISNEY UNITS 3153 3616 2836 BEGINNING 3062 3079 719 3079 164 273 156 NEW CONNECTS 1862 2959 4601 3215 -195 -177 -174 (REDUCTIONS) -2124 -2326 -2178 -2500 3142 3712 2820 EWIN6 2820 3712 3142 3794 _�... DISNEY REJEJ1E 2:246 24915 18836 SERVICE 1HCOME 220820 255591 220415 281111 21248 24915 18836 TOTAL t!SrE'' RE'JE►4.E 220820 255591 220415 261111 3148 3664 2628 ALCRA6E J+1TS 2983 3444 3044 3444 -11 96 -16 NET GAIN/LOSS -262 633 2423 715 -0.08 0.64 -0.12 PENETRATION Ir 20.52 24.90 22.53 25.20 -6.20 -4.83 -6.15 C14.R4 % -71.20 -67.54 -71.55 -72.59 6.75 6.80 6.66 AUG RE'JE?4.E'tJ IT '4.02 74.21 72.41 1 81.62 SEE NOTES TO FINANCIALS 0,. ` T1 . .c. )0, 'C. 'CR . . ??E R JC -.+t3ET., 16,31-85 ."-s--4-,,ET 4:' J' a.O1Tl C s., ENT mONTM YEAR TO DATE ..PsT YEAR BLOW c746ula `'FAR CURRENT YEAR 9U0GET LAST YEAR ANNUAL HOMES PASSED 29,673 29,813 29,673 29,813 PLANT MILES 270 271 270 271 LAC AND BUILDI €S 6,000 6,000 LEASEHOLD I'1PROuE1£NTS 3,080 235 OFFICE FURNITURE AND EQUIPMENT 21,180 19,652 4,399 19,652 VEHICLES AND EQUIPMENT 21,266 33,200 5,901 33,200 1,276 TEST EQUIPMENT 1,622 1,600 3,422 1,600 787 LOCAL ORIGINATION EQUIPMENT 26,907 RECEIU1N6 I TRrtilSMISSION EQUIP 5,932 5,924 8,431 5,924 1,812 1,276 SUB-TOTAL 53,080 66,376 49,060 66,376 188 238 SYSTEM ELECTRONICS 2,833 6,189 42,832 6,189 17,441 CONTRACT LABOR-ELECTRONICS 5,786 6,404 50,784 6,404 Ca E,,,f,RIDARE ; STRAND 4,345 5,094 196,885 5,094 59,015 3,645 CONTRACT LABOR-PLANT 30,885 17,106 180,510 17,106 702 VITALIZED LABOR 2,400 721 2,400 77,346 3;883 SJE TOTAL 43,849 37,193 471,732 37,193 8,850 9,405 SUBSCRIBER DROP !1ATERIAL 35,672 77,790 45,761 77,790 11,101 2,052 SUBSCRIBER TERMINALS 139,411 165,745 170,851 165,745 1,327 CONTRACT LABOR-SUBSCRIBER DROP 3,606 9,465 46,466 9,465 1,584 1,409 2,808 CAPITALIZED L. 4$OPS 17,040 14,898 11,057 16,307 22,862 1,409 14,265 SIB TOTAL 195,729 267,898 274,135 269,307 CAPITALIZED LEASES 1iPITALIZED INTEREST 101,230 1,409 19,424 TOTAL CAPITAL. EXPENDITURES 292,658 371,467 794,927 372,876 SEE NOTES TO F I NiANC I AI..S :s # _ O JR. 7E I :. 16'3i•85 :. �; ,•:'-'Uf L TI CSRENT MoiTH YEAR TO DATE LAST YEAR 8lUCET C.R YEAR C.R YEAR BUDGET LAST YEAR 444LIAL BUDGET GENERAL & ADMIN 2982 2000 1196 STING SALARIES 25344 25710 26953 28710 8499 6500 4530 PROGRAM GUIDES 56884 68320 97658 74820 177 1fRRKETING TESTS 946 3000 1430 3000 405 RELIC IMAGE 276 728 142 751 STAFF TRAINING 2321 4500 2317 4500 100 MISC MARKETING 529 1500 1325 1500 CQNS≤f ER RESEARCH 1298 3000 1288 3000 12305 8500 6477 SLETQTAL G & A 87598 106030 131699 115530 VJ RT & PROMO 2922 1804 ADuERTISING-D:RECT M 14750 6780 26239 6780 21 178 BILL ITS 1600 4030 5150 4030 3152 1024 5168 '.'1ASS MEDIA 33535 27727 34680 28027 ADJERTIS:.£- -ADCAS 12S 1830 608 86 ADVERTISING-C'HER 3441 2000 6118 2000 511 1263 PREMIX !47ENT1VES 5776 3100 4015 3100 110 GUIDE Av E TISI G 9 960 93 1010 -1161 2150 CD-OP RE:'13 'ENTS -18804 -1410 -21910 -1410 6053 1134 10649 SUBTOTAL A & P 40432 43187 56215 43537 ••__ DIRECT SALES 15444 11900 15862 SALES Cl'PENSATION 101629 131180 120726 140180 35 400 1492 SALES PROMO MATORIAL 5373 4040 2284 4440 15479 12300 17354 S ETOTAL DIRECT SALE 107002 135220 123010 144620 33837 21934 34480 MARKETING EXPENSES 235032 284437 310924 303687 366688 417,847 363372 TOTAL REVERE 3789060 4127674 3263219 4550753 13.96 10.19 16.10 COST PER UNIT ADDED 14.89 13.17 5.66 12.00 100.71 34.22 38.96 PER NET ;1N1T GAIN D -76.41 171.14 11.29 136.00 c'cr. NOTES TO fIWCIA..S a.-h.7+' : - t.0:+ ,•iES F06 'r( ,,'..- l `fRJ: i6 31/85 LL .-4,?t u;T4.1UT AJDITI r,RSF-NT MONTH YEAR TO DATE LAST YEAR BUDGET CLO YEAR CS YEAR BlA6ET LAST YEAR ANNUAL BUDGET TOTAL ADU SALES 23440 26000 10898 TIME SALES-LOCAL 145136 218500 135281 246500 1500 625 OTHER TIME SALES 5123 12300 -34 13800 300 PRCCR{1 DO l8IT1CN 1100 3300 3600 2000 1257 OTHER ADVERTISING RE 5825 12250 14250 23440 29800 12780 ADV REu T E 157164 246350 135247 278150 • .t .t• EXPENSE 1076 SALARIES 6286 3977 1090 TECHNICAL SALARIES 11909 12999 OVERTIME COMP. 4367 4200 4245 TIME SALES SALARIES 40244 39600 36047 44300 400 03NT LABOR-TIME SALE 633 3650 452 4100 476 380 PAYROLL TOES 4120 4635 260 5156 137 185 168 INSURANCE-EMPLOYEE 1723 1803 1103 2006 53 24 It AANCE-t"OrP. 154 516 574 REPAIRS b MIAINT. 21 40 22 FREIGHT b POSTAGE 308 440 60 480 60 XES & Si1BSCRlPT 101+ 520 967 520 15 135 42 :CHICLE OPERAiIOh 663 1485 15 1620 TRAVEL I. ENTER. 195 75 50 TIME SALES T & E 1266 1335 76 1410 166 2093 WE DEBT EXPENSE 4976 1826 875 1992 50 STUDIO SUPPLIES 119 131 94 100 Walk.- Tir SALES 453 1980 2485 2030 nI SCELLAMEOUS 62 54 5749 6920 7074 TOTAL EXPENSE 61225 69699 46502 77187 17692 22880 5705 C TR:BLITI a MARGIN 95961 176651 88743 200963 ::t.. SEE NOTES TO E`.', CIALS .n co c rce:g. o1I C a cC.10 0 CV CO Cr w A v CO 1/40 - N N e-4 • O I.i +o M c- N- co M k.o ►, a c' Cam') N %0 .- !-... 4l O . .r .0 u O N C"7 e m •-r 7 ,Z U L) Z c Co o 03 OI rn w • d V7 C O N cr CO! CO N CO C' NI O 42 0 O O 0 N CO N V0 Cr4 C� ,..1 l >� "I ,� N rl Ni �� a QI N Z 0 ! Cr Cr VI c WI .— v N- r'')I NI c� O 4J V)I 4)I N- r- N N1 r7' 1 U O CO ..4 L g VO N i O Z O G I ar OI I Z .-.I F- • 0 4-1I I N U -- OC C3, ! 6 i0 . 4J Qi O = IZ ' ' I N Ce O _ cv its t.0 ICC cL; I • k4, ^ at), ,—; .n l 1 J1 I N d a0I 01 COI Cr:: CO' 01O; (..Ii N '.0• .t)j N COmil .>.I C iI , '1 1 •i �I �! MI ~1 OI NI z; 'w 0' U) - ^ �I c.I �I N, I C') d` .0 nl N CO Z' I. !I! O cl� w, r- I 00 v..> =IN O! w ^ ., O I N N , V7 Lt) ::, a m, r I 1 I N N V I Z J arZ 01 I I I G7 u C m X .•a ,., 0 C at 0 0 u 0 . 0 0 cv 1 Z C u c .o C% .-- U *4 .-i !a 1., b ►+ ►+ s+ Wet CO 0 U SA C1 8 F am F. C+ NORTHERN COLORADO VIDEO, INC. NOTES TO FINANCIAL STATEMENTS Eleven Months Ended October 31, 1985 (Prepared Without Audit) Note 1 - Summary of Significant Accounting Policies Formation of Company Northern Colorado Video, Inc. , A Colorado Corporation, (the Company) was organized on August 10, 1981 to build and operate cable television systems in the towns of Windsor, LaSalle, Rosedale, Garden City and Evans, Colorado. Effective January 1, 1984, Greeley Video, Inc. , an affiliate, was merged into the Company. The merger was treated as a nontaxable transfer at book value of assets and liabilities. The Company issued 1 share of stock for Greeley's stock. Effective February 1, 1984, the Company acquired the assets of Tri-Town Cablevision, Ltd. The acquisition was handled as a purchase and the operations since the date of the purchase are included in the operations of the Company. The Company paid approximately $515, 000 of which $278, 000 was paid in cash and approximately $237,000 was assumed in net liabilities. Property, P_an_ and Equipment Property, plant and equipment is stated at cost and is being depreciated on a straight-line basis over the estimated useful lives. Cost and estimated lives of major property accounts are as follows: Cost Life Leasehold Improvements $ 13, 386 15 Years Receiving, Transmitting and Distribution System 7,262,020 7-12 Years Support Equipment 569,652 4-12 Years Deferred Prematurity 48,781 10 Years Capitalized Interest 72,323 12 Years $7,966, 162 The cost of property, plant and equipment sold, replaced, abandoned or otherwise disposed of is, together with accumulated depreciation thereon, removed from the accounts and the resulting gain or loss reflected in operations if the disposition is of an extraordinary nature, or, if an ordinary disposition, the gain or loss is reflected in accumulated depreciation. Expenditures for repairs and maintenance are charged to expense as incurred. During the prematurity period of construction, the Company capitalized certain costs, including depreciation, relating to current operations. The prematurity period is defined as the period from the installation of the first subscriber until construction of the system is substantially complete. These costs are being depreciated using the straight-line method over a 10 year life and are included in property and equipment as deferred prematurity costs. Other Assets Franchises are being amortized over the terms of the various agreements. Note 2 _ ,._Debt Note payable to bank with interest payable quarterly at prime plus 1 1/4% (1 1/2% after July 1, 1985) and principal payable in graduated quarterly installments commencing June 30, 1985 with the final installment due March 31, 1991. (a) $5,047,500 Note payable to hank with interest payable quarterly at prime plus 2% and principal payable in graduated quarterly installments with the final installment due March 31, 1991. (b) 357,275 $5.404,775 (a) The Company, along with the sole shareholder, has $5,200,000 loan agreement with a bank. (b) The Company, along with the sole shareholder, assumed this note with a bank in conjunction with the acquisition of Tri-Town Cablevision, Ltd. Principal maturities of all available funds are borrowed under the loan agreement for the years following 1984 are as follows: 1985 - $171,800; 1986 - $520, 550; 1987 - $1, 049,850; 1988 - $1,372,250; 1989 - $1,158,300, 1990 and thereafter - $1, 303,825. Note 3 - Income Taxes The stockholder of the Company has elected small business tax status under the provisions of the Internal Revenue Code. Accordingly, the Company does not record the income tax effects of the operating profit or loss, nor account for available tax credits, if any, at the corporate level. Note 4 - Transactions with Affiliates and Related Parties The Company is managed by Daniels & Associates, Inc. (D&A) pursuant to a management agreement. The Companies are wholly-owned by the same stockholder. D&A provides certain administrative and management functions in return for a fee, which is the greater of 4% of gross receipts, as defined in the agreement or $25,000 per year. The agreement also allows for reimbursement of reasonable travel and out-of-pocket expenses incurred in the performance of its duties and obligation. Note 5 -Commitments and Contingencies The Company leases certain real property, transportation equipment and office equipment under noncancelable leases with original terms varying from three to ten years. For fiscal years ending November 30, minimum lease commitments for all noncancelable leases are approximately as follows: Office space - $167, 265 per year through 1991 Office equipment - 1985 - $2,045; 1986 - $1,164; 1987 - $1, 164; 1988 - $1, 164; 1989 - $1, 164. Transportation equipment - 1985 - $12,991. WAS WILL BE 1 . Name. Greeley Video, Inc. AKA/Northern Colorado Video Southwest Cablevision, Ltd. AKA/Greeley Cablevision AKA/Greeley Cablevision 3737 W 10 Street 3737 W 10 Street Greeley, CO 80634 Greeley, CO 80634 2. No change 3. No change 4. No change 5. No change 6. a-Bill Daniels, Sole stockholder Private, limited partnership. Managed by Daniels & Assoc. Managing partner, Daniels & Assoc. Bill Daniels-20% partner. (controlling interest, Daniels & Assoc.) Other investors: list will be submitted as soon as placements are completed-Estimated 1 -31-86 b-No change in people Percent of ownership will be supplied by 1-31-86 or as soon as it is known. 7. No change-same company will manage 8. No change 9. Attached 10. No change 11. No change-all requirements are being met 12. Same as present-other franchises held in Northern Colorado include Greeley, Windsor, LaSalle, Evans, Dacono, Frederick, Firestone, Garden City and Rosedale. 13. No officers or directors have ever been convicted of a felony. 14. No change from present operation. Exactly the same management people will be in place at the corporate office of Daniels & Assoc. and at the local office in Greeley. 15. Not applicable 16. No change Hello