10-Q 1 ctvf12b603q.txt 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 JUNE 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: 0-13807 CABLE TV FUND 12-B, LTD Exact name of registrant as specified in charter Colorado 84-0969999 ----------------------------- ---------------------------- 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 ----- ------

~~September~~CABLE ~~30,~~TV ~~December~~FUND 3112-B, ~~ASSETS~~LTD. ~~2002~~------------------------ ~~2001~~(A Limited Partnership) CONDENSED BALANCE SHEET (Unaudited) ASSETS ------ June 30, December 31, 2003 2002 ---------------- ---------------- Cash ................................................................... $2921,~~976~~289 $7321,~~307~~193 --------------- --------------- Total assets.............................................~~.....~~ $2921,~~976~~289 $7321,~~307~~193 =============== =============== LIABILITIES AND PARTNERS' CAPITAL --------------------------------- LIABILITIES: Advances from affiliates.......................................... $133,~~018~~526 $36,~~720~~740 --------------- --------------- Total liabilities........................................~~.....~~ 133,~~018~~526 36,~~720~~740 --------------- --------------- Commitments and Contingencies (Note 3) PARTNERS' CAPITAL: General Partner- Contributed capital............................................... 1,000 1,000 Distributions..................................................... (19,696,268) (19,696,268) Accumulated earnings.............................................. 19,~~702~~692,~~508~~209 19,~~712~~698,~~665~~881 --------------- --------------- 7(3,~~240~~059) 173,~~397~~613 --------------- --------------- Limited Partners- Net contributed capital (111,035 units outstanding at ~~September~~June 30, ~~2002~~2003 and December 31, ~~2001~~2002)....................... 47,645,060 47,645,060 Distributions..................................................... (114,620,017) (114,620,017) Accumulated earnings.............................................. 66,~~996~~965,~~675~~779 6766,~~027~~985,~~147~~797 --------------- --------------- 21(9,~~718~~178) 5210,~~190~~840 --------------- --------------- Total liabilities and partners' capital..................~~.....~~ $2921,~~976~~289 $7321,~~307~~193 =============== =============== ~~See notes to condensed financial statements. 1~~

See notes to condensed financial statements. 1

CABLE TV FUND 12-B, LTD. ------------------------ (A Limited Partnership) CONDENSED STATEMENT OF OPERATIONS --------------------------------- (Unaudited) Three Months Ended ~~Nine~~Six Months Ended ~~September~~June 30, ~~September~~June 30, 2003 2002 ~~2001~~2003 2002 ~~2001~~ -------------- ------------- ------------- ------------- OTHER INCOME (EXPENSE): Interest income....................................~~........~~ $~~228~~43 $~~920~~275 $~~821~~96 $~~2,473~~593 Administrative expenses and other~~, net~~..................~~...~~ (818,~~765~~210) (625,~~345~~432) (4126,~~450~~786) (4632,~~905~~685) -------------- ------------- ------------- ------------- NET LOSS................................................~~......~~ ($818,~~537~~167) ($525,~~425~~157) ($4026,~~629~~690) ($4432,~~432~~092) ============== ============== ============== ============== ALLOCATION OF NET LOSS: General Partner....................................~~........~~ ($24,~~134~~541) ($16,~~356~~289) ($106,~~157~~672) ($118,~~108~~023) ============== ============== ============== ============== Limited Partners...................................~~........~~ ($613,~~403~~626) ($418,~~069~~868) ($3020,~~472~~018) ($3324,~~324~~069) ============== ============== ============== ============== NET LOSS PER LIMITED PARTNERSHIP UNIT...................................~~........~~ ($0.0612) ($0.0417) ($0.2718) ($0.3022) ============== ============== ============== ============== WEIGHTED AVERAGE NUMBER OF LIMITED PARTNERSHIP UNITS OUTSTANDING......................~~........~~ 111,035 111,035 111,035 111,035 ============== ============== ============== ========== ~~See notes to condensed financial statements. 2~~====

See notes to condensed financial statements. 2

CABLE TV FUND 12-B, LTD. ------------------------ (A Limited Partnership) CONDENSED STATEMENT OF CASH FLOWS --------------------------------- (Unaudited) ~~Nine~~Six Months Ended ~~September~~June 30, 2003 2002 ~~2001~~ ------------- ------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net loss...................................................................... ($4026,~~629~~690) ($4432,~~432~~092) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: ~~Decrease~~Increase in advances from affiliates.................................~~....~~ (226,~~702)~~786 (222,~~766)~~712 ------------ ------------- Net cash provided by (used in) operating activities..............~~....................~~ ~~(43,331)~~96 (479,~~198~~380) Cash, beginning of period.......................................................... 21,193 73,307 ~~140,393~~ ------------ ------------- Cash, end of period................................................................ $2921,~~976~~289 $9363,~~195~~927 ============ ============= See notes to condensed financial statements. 3

3 CABLE TV FUND 12-B, 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 June 30, 2003, the condensed statement of operations for the three and six months ended June 30, 2003 and 2002, and the condensed statement of cash flows for the six months ended June 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 June 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 June 30, 2003 and 2002 and for the six months ended June 30, 2003 and 2002 were $618, $7,680, $1,236 and $10,063, respectively. On July 9, 2003, the Partnership transferred all remaining cash to the General Partner as a reimbursement for the allocated administrative expenses referred to above. The Partnership will no longer reimburse the General Partner, and these administrative expenses will be paid by the General Partner. (3) Commitments and Contingencies Litigation Challenging Jones Intercable's Acquisitions of Certain Cable Systems In June 1999, Jones Intercable was named a defendant in a case captioned City Partnership Co., derivatively on behalf of Cable TV Fund 12-C, Ltd., Cable TV Fund 12-D, Ltd. and Cable TV Fund 12-BCD Venture, plaintiff v. Jones Intercable, Inc., defendant and Cable TV Fund 12-C, Ltd., Cable TV Fund 12-D, Ltd. and Cable TV Fund 12- BCD Venture, nominal defendants (U.S. District Court, District of Colorado, Civil Action No. 99-WM-1155) (the "City Partnership" case) brought by City Partnership Co., a limited partner of the named partnerships. The plaintiff's complaint alleges that Jones Intercable breached its fiduciary duty to the plaintiff and to the other limited partners of the partnerships and to the Venture in connection with the Venture's sale of the Palmdale, California cable communications system (the "Palmdale System") to a subsidiary of Jones Intercable in December 1998. The complaint alleges that Jones Intercable acquired the Palmdale System at an unfairly low price that did not accurately reflect the market value of the Palmdale System. The plaintiff also alleges that the proxy solicitation materials delivered to the limited partners of the partnerships in connection with the votes of the limited partners on the Venture's sale of the Palmdale System contained inadequate and misleading information concerning the fairness of the transaction, which the plaintiff claims caused Jones Intercable to breach its fiduciary duty of candor to the limited partners and which the plaintiff claims constituted acts and omissions in violation of Section 14(a) of the Securities Exchange Act of 1934, as amended. Plaintiff also claims that Jones Intercable breached the contractual provision of the partnerships' limited partnership agreements requiring that the sale price be determined by the average of three separate, independent appraisals, challenging both the independence and the currency of the appraisals. The complaint finally seeks declaratory 4 CABLE TV FUND 12-B, LTD. ------------------------ (A Limited Partnership) NOTES TO CONDENSED FINANCIAL STATEMENTS --------------------------------------- (Unaudited) injunctive relief to prevent Jones Intercable from making use of the partnerships' funds to finance Jones Intercable's defense of this litigation. In August 1999, Jones Intercable was named a defendant in a case captioned Gramercy Park Investments, LP, Cobble Hill Investments, LP and Madison/AG Partnership Value Partners II, plaintiffs v. Jones Intercable, Inc. and Glenn R. Jones, defendants, and Cable TV Fund 12-B, Ltd., Cable TV Fund 12-C, Ltd., Cable TV Fund 12-D, Ltd., Cable TV Fund 14-A, Ltd. and Cable TV Fund 14-B, Ltd., nominal defendants (U.S. District Court, District of Colorado, Civil Action No. 99-B-1508) (the "Gramercy Park" case) brought as a class and derivative action by limited partners of the named partnerships. The plaintiffs' complaint alleges that the defendants made false and misleading statements to the limited partners of the named partnerships in connection with the solicitation of proxies and the votes of the limited partners on the sales of the Palmdale System, the Albuquerque, New Mexico cable communications system (the "Albuquerque System"), the Littlerock, California cable communications system (the "Littlerock System") and the Calvert County, Maryland cable communications system (the "Calvert County System") by the named partnerships to Jones Intercable or one of its subsidiaries in violation of Sections 14 and 20 of the Securities Exchange Act of 1934, as amended. The plaintiffs specifically allege that the proxy statements delivered to the limited partners in connection with the limited partners' votes on these sales were false, misleading and failed to disclose material facts necessary to make the statements made not misleading. The plaintiffs' complaint also alleges that the defendants breached their fiduciary duties to the plaintiffs and to the other limited partners of the named partnerships and to the named partnerships in connection with the various sales of the Albuquerque System, the Palmdale System, the Littlerock System and the Calvert County System to subsidiaries of Jones Intercable. The complaint alleges that Jones Intercable acquired these cable communications systems at unfairly low prices that did not accurately reflect the market values of the systems. The plaintiffs seek on their own behalf and on behalf of all other limited partners compensatory and nominal damages, the costs and expenses of the litigation, including reasonable attorneys' and experts' fees, and punitive and exemplary damages. In September 1999, Jones Intercable was named a defendant in a case captioned Mary Schumacher, Charles McKenzie and Geraldine Lucas, plaintiffs v. Jones Intercable, Inc. and Glenn R. Jones, defendants and Cable TV Fund 12-B, Ltd., Cable TV Fund 12-C, Ltd., Cable TV Fund 12-D, Ltd., Cable TV Fund 14-A, Ltd. and Cable TV Fund 14-B, Ltd., nominal defendants (U.S. District Court, District of Colorado, Civil Action No. 99-WM-1702) ("Schumacher") brought as a class and derivative action by three limited partners of the named partnerships. The substance of the Schumacher plaintiffs' complaint is similar to the allegations raised in the Gramercy Park case. In September 1999, Jones Intercable was named a defendant in a case captioned Robert Margolin, Henry Wahlgren and Joan Wahlgren, plaintiffs v. Jones Intercable, Inc. and Glenn R. Jones, defendants and Cable TV Fund 12-B, Ltd., Cable TV Fund 12-C, Ltd., Cable TV Fund 12-D, Ltd., Cable TV Fund 14-A, Ltd. and Cable TV Fund 14-B, Ltd., nominal defendants (U.S. District Court, District of Colorado, Civil Action No. 99-B-1778) ("Margolin") brought as a class and derivative action by three limited partners of the named partnerships. The substance of the Margolin plaintiffs' complaint is similar to the allegations raised in the Gramercy Park case. In November 1999, the United States District Court for the District of Colorado entered an order consolidating all of the cases challenging Jones Intercable's acquisitions of the Albuquerque, Palmdale, Littlerock and Calvert County Systems because these cases involve common questions of law and fact. The cases are presented as both class and derivative actions. In June 2001, the plaintiffs filed a motion for class certification. In August 2001, the General Partner filed a brief in opposition to plaintiffs' motion for class certification. In September 2002, the court granted the plaintiffs' motion for class certification. On June 25, 2003, the parties agreed to the terms of a settlement of this litigation and entered into a written settlement agreement. Because these are class and derivative actions, notice of the settlement was sent to the limited partners on August 5, 2003. The settlement must be approved by the court. The court has set a hearing for final approval of the settlement for September 24, 2003. 5 CABLE TV FUND 12-B, LTD. ------------------------ (A Limited Partnership) NOTES TO CONDENSED FINANCIAL STATEMENTS --------------------------------------- (Unaudited) If the settlement is approved by the court, 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 agreements. 6 CABLE TV FUND 12-B, 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 June 30, 2003 was its cash on hand, which was being held in reserve to pay the Partnership's administrative expenses until the Partnership is dissolved. On July 9, 2003, the Partnership transferred all remaining cash to the General Partner as a reimbursement for the allocated administrative expenses described in Note 2 to our condensed financial statements. The Partnership will no longer reimburse the General Partner, and these administrative expenses will be paid by the General Partner. 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. 7 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 12-B, LTD. BY: COMCAST CABLE COMMUNICATIONS, INC. ----------------------------------- General Partner By: /s/ LAWRENCE J. SALVA ----------------------------------- Lawrence J. Salva Senior Vice President (Principal Accounting Officer) Dated: August 6, 2003 8

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