-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TRxVZUlKq559fi/YrIFb4pw1uqhdt2PuuNq34y2nANptgRr1uhmPWwIX1vQHWvAE vP3QRF311yAUPnFy04AFPw== 0000927356-98-001861.txt : 19981116 0000927356-98-001861.hdr.sgml : 19981116 ACCESSION NUMBER: 0000927356-98-001861 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JONES PROGRAMMING PARTNERS 2-A LTD CENTRAL INDEX KEY: 0000868610 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MOTION PICTURE & VIDEO TAPE PRODUCTION [7812] IRS NUMBER: 841088829 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-20944 FILM NUMBER: 98747491 BUSINESS ADDRESS: STREET 1: 9697 E MINERAL AVE STREET 2: C/O JONES ENTERTAINMENT GROUP LTD CITY: ENGLEWOOD STATE: CO ZIP: 80155-3309 BUSINESS PHONE: 3037923111 MAIL ADDRESS: STREET 1: P O BOX 3309 STREET 2: 9697 E MINERAL AVE CITY: ENGLEWOOD STATE: CO ZIP: 80155 FORMER COMPANY: FORMER CONFORMED NAME: JONES PROGRAMMING PARTNERS 2 DATE OF NAME CHANGE: 19600201 10-Q 1 10-Q -- JONES PROGRAMMING PARTNERS 2-A FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [x] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 1998. ------------------ [ ] 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 0-20944 Jones Programming Partners 2-A, Ltd. - -------------------------------------------------------------------------------- Exact name of registrant as specified in charter Colorado #84-1088819 - -------------------------------------------------------------------------------- State of organization I.R.S. employer I.D.# 9697 East Mineral Avenue, P.O. Box 3309, Englewood, Colorado 80155-3309 ------------------------------------------------------------------------ Address of principal executive office (303) 792-3111 ----------------------------- Registrant's telephone number Indicate by check mark whether the registrant (l) has filed all reports required to be filed by Section l3 or l5(d) of the Securities Exchange Act of l934 during the preceding l2 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 --- --- JONES PROGRAMMING PARTNERS 2-A, LTD. ------------------------------------ (A Limited Partnership) INDEX ----- Page Number ------ PART I. FINANCIAL INFORMATION Item 1. Financial Statements Unaudited Statements of Financial Position as of December 31, 1997 and September 30, 1998 3 Unaudited Statements of Operations for the Three and Nine Months Ended September 30, 1997 4 and 1998 Unaudited Statements of Cash Flows for the Nine Months Ended September 30, 1997 and 1998 5 Notes to Unaudited Financial Statements as of September 30, 1998 6-7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8-11 PART II. OTHER INFORMATION 12 2 JONES PROGRAMMING PARTNERS 2-A, LTD. ------------------------------------ (A Limited Partnership) UNAUDITED STATEMENTS OF FINANCIAL POSITION ------------------------------------------
December 31, September 30, ASSETS 1997 1998 ------ ------------ ------------- CASH AND CASH EQUIVALENTS $ 526,005 $ 115,545 ACCOUNTS RECEIVABLE 74,823 - INVESTMENT IN AND ADVANCES FOR FILM PRODUCTION, net of accumulated amortization of $3,666,515 and $3,686,343 as of December 31, 1997 and September 30, 1998, respectively (Note 3) 364,736 344,908 ----------- ----------- Total assets $ 965,564 $ 460,453 =========== =========== LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) ------------------------------------------- LIABILITIES: Accounts payable to affiliates $ 8,622 $ 4,794 Accrued distributions to partners 141,781 - Accrued liabilities 123,910 3,500 ----------- ----------- Total liabilities 274,313 8,294 ----------- ----------- PARTNERS' CAPITAL (DEFICIT): General Partner: Contributed capital 1,000 1,000 Distributions (30,431) (33,267) Accumulated deficit (10,906) (10,461) ----------- ----------- Total general partner's deficit (40,337) (42,728) ----------- ----------- Limited partners: Contributed capital, net of offering costs (11,229 units outstanding as of December 31, 1997 and September 30, 1998) 4,823,980 4,823,980 Distributions (3,012,602) (3,293,328) Accumulated deficit (1,079,790) (1,035,765) ----------- ----------- Total limited partners' capital 731,588 494,887 ----------- ----------- Total partners' capital 691,251 452,159 ----------- ----------- Total liabilities and partners' capital $ 965,564 $ 460,453 =========== ===========
The accompanying notes to these unaudited financial statements are an integral part of these unaudited financial statements. 3 JONES PROGRAMMING PARTNERS 2-A, LTD. ------------------------------------ (A Limited Partnership) UNAUDITED STATEMENTS OF OPERATIONS ----------------------------------
For the Three Months For the Nine Months Ended September 30, Ended September 30, ------------------------ ------------------------ 1997 1998 1997 1998 -------- -------- -------- -------- GROSS REVENUES $ 77,268 $ 7,513 $184,686 $145,167 COSTS AND EXPENSES: Costs of filmed entertainment 76,859 - 181,744 19,828 Distribution fees and expenses 3,156 3,757 17,771 72,320 Operating, general and administrative expenses 24,502 6,030 64,165 23,602 -------- ------- -------- -------- Total costs and expenses 104,517 9,787 263,680 115,750 -------- ------- -------- -------- OPERATING INCOME (LOSS) (27,249) (2,274) (78,994) 29,417 -------- ------- -------- -------- OTHER INCOME: Interest income 7,978 3,894 32,253 15,033 Other income - - - 20 -------- ------- -------- -------- Total income 7,978 3,894 32,253 15,053 -------- ------- -------- -------- NET INCOME (LOSS) $(19,271) $ 1,620 $(46,741) $ 44,470 ======== ======= ======== ======== ALLOCATION OF NET INCOME (LOSS): General partner $ (193) $ 16 $ (467) $ 445 ======== ======= ======== ======== Limited partners $(19,078) $ 1,605 $(46,274) $ 44,025 ======== ======= ======== ======== NET INCOME (LOSS) PER LIMITED PARTNERSHIP UNIT $ (1.70) $ .15 $ (4.12) $ 3.92 ======== ======= ======== ======== WEIGHTED AVERAGE NUMBER OF LIMITED PARTNERSHIP UNITS OUTSTANDING 11,229 11,229 11,229 11,229 ======== ======= ======== ========
The accompanying notes to the unaudited financial statements are an integral part of these unaudited financial statements. 4 JONES PROGRAMMING PARTNERS 2-A, LTD. ------------------------------------ (A Limited Partnership) UNAUDITED STATEMENTS OF CASH FLOWS ----------------------------------
For the Nine Months Ended September 30, ----------------------------- 1997 1998 ------------ ----------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (46,741) $ 44,470 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Amortization of filmed entertainment costs 181,744 19,828 Amortization of discount (14,207) - Net change in assets and liabilities: Decrease in accounts receivable 4,677 74,823 Increase in other assets (275) - Decrease in accounts payable to affiliates (13,136) (3,850) Decrease in accrued liabilities (4,397) (120,410) --------- --------- Net cash provided by (used in) operating activities 107,665 (14,883) --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from payment of note receivable by General Partner 389,166 - --------- --------- Net cash provided by investing activities 389,166 - --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: Distributions to partners (425,343) (425,343) --------- --------- Net cash used in financing activities (425,343) (425,343) --------- --------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 71,488 (410,460) CASH AND CASH EQUIVALENTS, beginning of period 537,638 526,005 --------- --------- CASH AND CASH EQUIVALENTS, end of period $ 609,126 $ 115,545 ========= =========
The accompanying notes to the unaudited financial statements are an integral part of these unaudited financial statements. 5 JONES PROGRAMMING PARTNERS 2-A, LTD. ------------------------------------ (A Limited Partnership) NOTES TO UNAUDITED FINANCIAL STATEMENTS --------------------------------------- (1) BASIS OF PRESENTATION --------------------- This form 10-q is being filed in conformity with the SEC requirements for unaudited financial statements and does not contain all of the necessary footnote disclosures required for a fair presentation of the Statements of Financial Position and Statements of Operations and Cash Flows in conformity with generally accepted accounting principles. However, in the opinion of management, this data includes all adjustments, consisting only of normal recurring accruals, necessary to present fairly the financial position of Jones Programming Partners 2-A, Ltd. (the "Partnership") as of December 31, 1997 and September 30, 1998 and its results of operations and its cash flows for the three and nine month periods ended September 30, 1997 and 1998. Results of operations for these periods are not necessarily indicative of results to be expected for the full year. (2) TRANSACTIONS WITH AFFILIATED ENTITIES ------------------------------------- The General Partner is entitled to reimbursement from the Partnership for its direct and indirect expenses allocable to the operations of the Partnership, which shall include, but not be limited to, rent, supplies, telephone, travel, legal expenses, accounting expenses, preparation and distribution of reports to investors and salaries of any full or part-time employees. Because the indirect expenses incurred by the General Partner on behalf of the Partnership are immaterial, the General Partner generally does not charge indirect expenses to the Partnership. The General Partner charged $14,860 and $2,954 to the Partnership for direct expenses to the Partnership for the three months ended September 30, 1997 and 1998, respectively. For the nine month periods ended September 30, 1997 and 1998, $41,684 and $8,389, respectively, of direct expenses were charged to the Partnership. (3) INVESTMENT IN AND ADVANCES FOR FILM PRODUCTION ---------------------------------------------- "Charlton Heston Presents: The Bible" ----------------------------------- In May 1992, the General Partner, on behalf of the Partnership, entered into an agreement with Agamemnon Films, an unaffiliated party, to produce four one-hour programs for television, entitled "Charlton Heston Presents: The Bible" (the "Bible Programs"). The production costs of the Bible Programs were approximately $2,130,000. In addition, the Partnership paid a $240,000 production and overhead fee to the General Partner. In return for agreeing to fund these production costs, the Partnership acquired all rights to the Bible Programs in all markets and in all media in perpetuity. The Partnership subsequently assigned half of its ownership of the Bible Programs to an unaffiliated party for an investment of $1,000,000 toward the production costs for the Bible Programs. After consideration of the reimbursement, the Partnership's total investment in the Bible Programs is $1,369,764. From inception to September 30, 1998, the Partnership has recognized $1,623,503 of gross revenue from this film, of which $695,710 has been retained by the distributors of the film for their fees and marketing costs and $927,793 has been received by the Partnership as of September 30, 1998. The Partnership recovered its remaining investment in this film in June 1998. "The Whipping Boy" ---------------- In August 1993, the Partnership acquired the film rights to the Newbury Award-winning book "The Whipping Boy." "The Whipping Boy" was produced as a two hour telefilm which premiered in the North American television market on The Disney Channel. The film's final cost was approximately $4,100,000. As of September 30, 1998, the Partnership had invested $2,661,487 in the film, which included a $468,000 production and overhead fee paid to the General Partner. The film was co-produced by the General Partner and Gemini Films, a German company. The completed picture was delivered to The Disney Channel in the second quarter of 1994. From inception to September 30, 1998, the Partnership has recognized $2,274,265 of gross revenue from this film, of which $2,100,000 represents the initial license fee from The Disney Channel that was used to finance the film's production. Of the remaining $174,265, $8,350 has been retained by the distributors of the film for 6 their fees and marketing costs and $165,915 has been received by the Partnership as of September 30, 1998. The Partnership plans to recover its remaining investment in this film from net revenues generated from domestic and international home video and television markets. The Partnership's net investment in the film, after consideration of amortization, was $344,908 as of September 30, 1998. The Partnership plans to recover its remaining investment in this film from net revenues generated from domestic and international home video and television markets or from the sale of the Partnership's interests in the film. 7 JONES PROGRAMMING PARTNERS 2-A, LTD. ------------------------------------ (A Limited Partnership) MANAGEMENT'S DISCUSSION AND ANALYSIS OF --------------------------------------- FINANCIAL CONDITION AND RESULTS OF OPERATIONS --------------------------------------------- FINANCIAL CONDITION ------------------- Liquidity and Capital Resources - ------------------------------- The Partnership's principal sources of liquidity are cash on hand and amounts received from the domestic and international distribution of its programming. As of September 30, 1998, the Partnership had $115,545 in cash. It is not anticipated that the Partnership will invest in any additional programming projects, but instead will focus on the distribution and/or sale of its existing programming projects. Given the near completion of the second cycle distribution of the Partnership's programming, regular quarterly distributions have been suspended beginning with the quarter ended September 30, 1998. However, for the nine months ended September 30, 1998, the Partnership declared distributions totaling $283,562, of which $141,781 was paid in May 1998, and $141,781 was paid in August 1998. The Partnership will retain a certain level of working capital, including any necessary reserves, to fund its operating activities. Any amounts in excess of the Partnership's working capital needs received from continued second cycle distribution of the Partnership's programming may be periodically distributed to partners. In addition, future distributions will also be made from proceeds received from the sale of the Partnership's assets. The General Partner, on behalf of the Partnership, is currently involved in efforts to sell the Partnership's interests in its programming projects. Estimates of value obtained from independent consulting firms in late 1996 and early 1997 are being used by the General Partner in planning sales. There can be no assurance that the ultimate negotiated sales prices of the programming projects sold to unaffiliated parties will be at least equal to the films' estimated fair market value. If the General Partner or one of its affiliates exercises its right to purchase a programming project, however, the sales price for such a transaction will be at least equal to the average of three independent appraisals of the programming project's fair market value. Any sale of all or substantially all of the Partnership's assets will be subject to the approval of the Partnership's limited partners prior to closing of the sale. The General Partner cannot predict at this time when or at what price the Partnership's interests in its programming projects ultimately will be sold. However, any direct costs incurred by the General Partner on behalf of the Partnership in soliciting and arranging for the sale of the Partnership's programming projects will be charged to the Partnership. It is anticipated that proceeds from the sale of the Partnership's interests in its programming will be distributed to the partners upon such sale. Based on the independent estimates of value obtained for the Partnership's programming projects, it now appears likely that the projects together with all prior distributions paid to the limited partners will not be sufficient to return to the limited partners 100% of their initial capital contributions made to the Partnership. The General Partner believes that the Partnership has, and will continue to have, sufficient liquidity to fund its operations and to meet its obligations. Cash flow from operating activities will be generated primarily from the Partnership's programming projects as follows: "Charlton Heston Presents: The Bible" ------------------------------------ In 1992, the General Partner, on behalf of the Partnership, entered into an agreement with Agamemnon Films, an unaffiliated party, to produce four one-hour programs for television, entitled "Charlton Heston Presents: The Bible" (the "Bible Programs") for Arts and Entertainment Network ("A&E"). The production costs of the Bible Programs were approximately $2,370,000, which included a $240,000 production and overhead fee to the General Partner. In return for 8 agreeing to fund these production costs, the Partnership acquired all rights to the Bible Programs in all markets and in all media in perpetuity. In order to reduce the Partnership's financial exposure, the General Partner, on behalf of the Partnership, assigned one-half of the Partnership's interest in the Bible Programs to GoodTimes Home Video Corporation ("GoodTimes"), an unaffiliated entity directly involved in the specialty home video and international television distribution business, for an investment by GoodTimes of $1,000,000. The Partnership and GoodTimes funded Jones Documentary Film Corporation ("JDFC"), which in turn contracted with Agamemnon Films for the production of the Bible Programs. JDFC was formed to insulate the Partnership and GoodTimes from certain risks and potential liabilities associated with the production of programming in foreign countries because the Bible Programs were filmed on location in the Holy Lands. The Partnership and JDFC granted the General Partner the exclusive rights to distribute the Bible Programs. To accomplish this, the General Partner, on its own behalf, and GoodTimes entered into an agreement to form J/G Distribution Company to distribute the Bible Programs. J/G Distribution Company was formed in June 1992 and the Partnership granted it the sole and exclusive right to exhibit and distribute, and to license others to exhibit and distribute, the Bible Programs in all markets, all languages, and all media in perpetuity. J/G Distribution Company holds the copyright for the benefit of the Partnership (50 percent interest) and GoodTimes (50 percent interest). J/G Distribution Company is currently distributing the Bible Programs in the retail home video market. As of September 30, 1998, gross sales made by J/G Distribution Company totaled $2,746,838, of which $1,373,419 has been retained by J/G Distribution Company for its fees and marketing costs, with the remaining $1,373,419 belonging 50 percent to the Partnership and 50 percent to GoodTimes. Additionally, $250,000 was received directly by the Partnership as its share of the initial license fee from A&E. As of September 30, 1998, the Partnership had received $686,710 from J/G Distribution and the $250,000 from A&E. The Partnership recovered its remaining net investment in the Bible Programs in June 1998. "The Whipping Boy" ---------------- In August 1993, the Partnership acquired the film rights to the Newbury Award- winning book "The Whipping Boy." The project was co-developed by the Partnership and The Disney Channel and produced by the General Partner and German and French co-production partners. The completed telefilm was delivered to The Disney Channel in the second quarter of 1994 and premiered in the North American television market in July 1994. As of September 30, 1998, the Partnership had invested $2,661,487 in the film, which included a $468,000 production and overhead fee payable to the General Partner. The Partnership has received approximately $2,100,000 from The Disney Channel for licensing certain rights to the film to The Disney Channel. The Partnership was responsible for approximately one-half of the $4,100,000 production cost, with the balance of the production budget funded by Gemini Films and other co-production partners and/or territorial advances from the film's international distributors. The amount contributed to the production budget by the Partnership was partially reimbursed by the license advances totaling $2,100,000 received from the Disney Channel. Gemini Films will have, in perpetuity, the copyright and all exploitation rights to the film in German language territories (defined as Germany, Austria, German- speaking Switzerland and German-speaking Luxembourg). Although these exploitation rights will remain the sole property of Gemini Films, Gemini Films will account to the Partnership for any revenue therefrom. The Partnership will own the worldwide copyright, excluding German language territories, in perpetuity. Although the Partnership will own all exploitation rights in all media in North America, which is defined as the United States, Canada and their respective territories and possessions, the Partnership will account to Gemini Films for any revenue generated therefrom. From the movie's North American revenues, the Partnership will first be entitled to recover its investment plus interest. Thereafter, the Partnership will receive 90 percent of all North American revenues and Gemini Films will receive 10 percent of such revenues. With respect to international revenues from the movie's distribution, after Gemini Films recovers $250,000 of its investment in the movie's production budget, any funded overages and interest out of net international revenues, the Partnership will receive 20 percent of net international revenues and Gemini Films will receive 80 percent. 9 In March 1995, the General Partner, on behalf of the Partnership, entered into an agreement with an unaffiliated party granting rights to distribute "The Whipping Boy" in the non-theatrical domestic markets. Non-theatrical markets include 16mm sales and rentals, in-flight, oil rigs, ships at sea, military installations, libraries, restaurants, hotels, motels or other institutional or commercial enterprises. As of September 30, 1998, gross sales made under this agreement totaled $38,348, of which $8,325 was retained by the distributor for its fees and $30,023 was received by the Partnership. In May 1995, the General Partner, on behalf of the Partnership, entered into a distribution agreement with an unaffiliated party granting rights to distribute "The Whipping Boy" in the domestic home video market for a period not to exceed five years. As of September 30, 1998, net sales earned and received by the Partnership under this agreement totaled $135,121. The General Partner and Gemini Films selected Canal Plus Distribution as the company that will distribute and exploit the movie outside of North America. Canal Plus Distribution will earn distribution fees of 15 percent of the film's gross receipts outside of North America, and it will be reimbursed for its expenses capped at 10 percent of the film's gross receipts outside of North America (excluding dubbing costs). Canal Plus Distribution will be responsible for accounting and remitting to Gemini Films the net revenues from the film's distribution in all markets and in all media outside of North America. Gemini Films will be responsible for forwarding the Partnership's share of such revenues within 10 days of receipt of such funds from Canal Plus. During the fourth quarter of 1996, the General Partner reassessed the anticipated total gross revenue remaining from the distribution of "The Whipping Boy" in available international and domestic television and home video markets. Based on revised estimated television and home video sales projections provided by an independent consultant, a reduction was made to the Partnership's estimate of total gross revenue to be recognized from the future distribution of the film. Accordingly, based on the reduced revenue projections for the film, a determination was made by the General Partner that the Partnership's net investment in "The Whipping Boy" of $952,731 exceeded the film's estimated net realizable value of approximately $375,000 as of December 31, 1996. As a result, a loss from write-down of film production cost of $575,000 was incurred to reduce the unamortized cost of the film to its estimated net realizable value as of December 31, 1996. The film's estimated net realizable value was calculated based on an estimate of anticipated revenues remaining over the life of the film from international and domestic television and home video distribution, net of estimated distribution fees and costs, as of December 31, 1996. These revenue projections were estimated based on the film's prior distribution history, the remaining international and domestic territories available to the film for future television and home video distribution, and the General Partner's and the independent consultant's previous distribution experience with other films. The Partnership plans to recover its remaining net investment in this film of $344,908 primarily from net revenues generated from international and domestic home video and television distribution or sale of the Partnership's interests in the film. RESULTS OF OPERATIONS --------------------- Revenues of the Partnership decreased $69,755, from $77,268 to $7,513 for the three months ended September 30, 1997 and 1998, respectively. Revenues of the Partnership decreased $39,519, from $184,686 to $145,167 for the nine months ended September 30, 1997 and 1998, respectively. These decreases were primarily the result of decreases in the distribution of "The Whipping Boy". Revenues from the Bible Programs increased $2,799, from $4,712 to $7,511 for the three months ended September 30, 1997 and 1998, respectively and increased $110,745, from $33,893 to $144,638 for the nine months ended September 30, 1997 and 1998, respectively. However, revenues received from "The Whipping Boy" decreased $72,555 to $0 for the three months ended September 30, 1997 and 1998, respectively, and decreased $150,264, from $150,793 to $529 for the nine months ended September 30, 1997 and 1998, respectively. Filmed entertainment costs decreased $76,859 to $0 for the three months ended September 30, 1997 and 1998, respectively. Filmed entertainment costs decreased $161,916, from $181,744 to $19,828 for the nine months ended September 30, 1997 and 1998, respectively. These decreases were the result of the full amortization of the capitalized production costs relating to the Bible Programs during 1998. Also, the decreases were the result of lower revenue from the "Whipping Boy" during similar periods as discussed above. Filmed entertainment costs are amortized over the life of the film in the ratio that current gross revenues bear to anticipated total gross revenues. 10 Distribution fees and expenses increased $601, from $3,156 to $3,757 for the three months ended September 30, 1997 and 1998, respectively. Distribution fees and expenses increased $54,549, from $17,771 to $72,320 for the nine months ended September 30, 1997 and 1998, respectively. These increases were the result of increased distribution fees paid related to the increased revenue of the Bible Programs as discussed above. Distribution fees and expenses relate to the compensation due and costs incurred by unaffilliated parties in selling the Partnership's programming in the domestic and international markets. The timing and amount of distribution fees and expenses vary depending upon the individual market in which programming is distributed. Operating, general and administrative expenses decreased $18,472, from $24,502 to $6,030 for the three months ended September 30, 1997 and 1998, respectively. Operating and general and administrative expenses decreased $40,563, from $64,165 to $23,602 for the nine months ended September 30, 1997 and 1998, respectively. These decreases were due primarily to decreased direct costs allocable to the operations of the Partnership that were charged to the Partnership by the General Partner and its affiliates in 1998 as compared to 1997. The decrease in direct costs allocable to the Partnership's operations resulted mainly from the decrease in General Partner personnel expenses and the decrease in direct time spent by the affiliates of the General Partner on the accounting and legal functions of the Partnership. Interest income decreased $4,084, from $7,978 to $3,894 for the three months ended September 30, 1997 and 1998, respectively. Interest income decreased $17,220, from $32,253 to $15,033 for the nine months ended September 30, 1997 and 1998, respectively. These decreases in interest income were due primarily to the decrease of $14,207 and the related amortization of a note for the nine months ended September 30, 1998 with no amortization for the nine months ended September 30, 1998. The interest income was related to the amortization of the discount on the promissory notes received from the General Partner as part of the September 1995 sale of the film "Household Saints". In addition, interest income decreased by $3,013 for the nine months ended September 30, 1998 as compared to the similar period in 1997 as a result of lower average cash balances. 11 Part II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K. a) Exhibits 27) Financial Data Schedule b) Reports on Form 8-K None 12 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. JONES PROGRAMMING PARTNERS 2-A, LTD. BY: JONES ENTERTAINMENT GROUP, LTD. General Partner By: /s/ Steven W. Gampp ------------------------------- Steven W. Gampp Vice President/Finance and Treasurer (Principal Financial Officer) Dated: November 13, 1998 13 EX-27 2 FINANCIAL DATA SCHEDULE
5 9-MOS DEC-31-1998 JAN-01-1998 SEP-30-1998 115,545 0 0 0 0 0 0 0 460,453 8,294 0 0 0 0 452,159 460,453 0 145,167 0 (115,750) 20 0 15,033 44,470 0 44,470 0 0 0 44,470 3.92 3.92
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