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JONES INTERCABLE REPORTS 1993 RESULTS

 ENGLEWOOD, Colo., Sept. 2 /PRNewswire/ -- Jones Intercable Inc. (NASDAQ: JOIN and JOINA) today reported an increase in revenues from subscriber service fees and management fees of $18.4 million, or 18 percent, for the year ended May 31, 1993 from $104.2 million reported in fiscal 1992 to $122.6 million reported in fiscal 1993. Total revenues decreased 6 percent during fiscal 1993 from $131.0 million reported in fiscal 1992 to $122.6 million reported in the current year. This decrease results from recognition of a $26.8 million liquidation distribution during fiscal 1992 and that no such distribution was recognized during fiscal 1993.
 Revenues from subscriber service fees increased $17.5 million, or 20 percent, for the year ended May 31, 1993 from $88.0 million reported in fiscal 1992 to $105.5 million reported in fiscal 1993. This increase was primarily the result of the net effect of the company's purchase of the Alexandria, Va. cable television system (the "Alexandria System") from one of the company's managed partnerships in November 1992 and the sale of the company's Onalaska, Wis. cable television system (the "Onalaska System") in December 1991 and, to a lesser extent, increases in the number of basic subscribers and basic service rate adjustments in company-owned systems. Disregarding the effect of the purchase of the Alexandria System and the sale of the Onalaska System, subscriber service fee revenues would have increased $9.8 million, or 11 percent, for the year ended May 31, 1993 as compared to fiscal 1992.
 Revenues from the management of limited partnerships for which the company is general partner increased 5 percent during the year ended May 31, 1993 from $16.2 million reported in fiscal 1992 to $17.1 million reported in the current fiscal year. The small increase in management fees was due to the effect of the company's purchase of the Alexandria System in November 1992 from one of its managed partnerships. The continued growth in management fee revenue has resulted principally from increases in operating revenues of the company's managed partnerships. Partnership operating revenues increased as a result of increases in basic subscribers, the offering of additional services and service rate adjustments.
 The company also receives liquidation distributions from the sale of cable television systems owned by its managed partnerships. Such distributions generally represent the company's 25 percent residual interest in the net sales proceeds from partnership liquidations, which in most cases are subordinated to certain returns to limited partners. During the year ended May 31, 1992, the company recognized approximately $26.8 million in liquidation distributions. No such liquidation distributions were recognized during fiscal 1993.
 For the year ended May 31, 1993, operating, general and administrative expenses increased 28 percent from $55.8 million reported in fiscal 1992 to $71.4 million reported in fiscal 1993. This increase was due to increases in personnel costs, satellite fees, premium service fees and marketing-related costs, as well as the net effect of the purchase of the Alexandria System and the sale of the Onalaska System. In addition, during the year ended May 31, 1993, the company recognized approximately $4.1 million of non-cash compensation expense relating to the granting of employee stock options. No such expense was recognized during fiscal 1992. Disregarding the net effect of the Alexandria and Onalaska transactions and the expense related to the stock option grants, operating, general and administrative expenses would have increased $7.2 million, or 13 percent, for the year ended May 31, 1993 as compared to fiscal 1992.
 For the year ended May 31, 1993, depreciation and amortization expenses increased 8 percent, from $39.6 million reported in fiscal 1992 to $42.4 million reported in fiscal 1993. This increase was due primarily to the Alexandria System acquisition in November 1992 and the resulting increase in the company's asset base.
 Operating income before depreciation and amortization for the year ended May 31, 1993 was $51.2 million, a decrease of $24.0 million from the $75.2 million reported in fiscal 1992. Disregarding the net effect of the Alexandria and Onalaska transactions, the stock option expense and the liquidation distribution recognized during the third quarter of fiscal 1992, operating income before depreciation would have increased $4.0 million, or 8 percent, for the year May 31, 1993, as compared to fiscal 1992.
 Based on the company's assessment of the Federal Communication Commission's rule makings concerning rate regulation under the Cable Television Consumer Protection and Competition Act of 1992, the company believes that the new benchmark rate regulations will require the company to reduce rates charged for certain regulated services. On an annualized basis, such regulation, with which the company will comply, will result in an estimated reduction in revenue of approximately $5.5 million, or 4.5 percent, and a decrease in operating income before depreciation and amortization of approximately $5.2 million, or 9 percent. Based on the foregoing, the company believes that the new rate regulations, when implemented, will adversely affect its revenues and operating income before depreciation and amortization. The company plans to mitigate a portion of these reductions primarily through (a) new service offerings, (b) product re-marketing and re-packaging and (c) targeted non-subscriber acquisition marketing.
 In July 1992, the company sold $160 million of 11.5 percent Senior Subordinated Debentures due 2004, resulting in net proceeds to the company of $156 million. On Aug. 24, 1992, a portion of the net proceeds was used to redeem all of the remaining $66.6 million principal amount of the company's 9.75 percent Subordinated Debentures due 1998. As a result of this redemption, the company recognized an extraordinary loss before income taxes of $6.3 million, or 44 cents per share, in fiscal 1993. Pending use of the remaining proceeds to purchase one or more cable television systems, the majority of the remaining proceeds were used to repay the $66 million then outstanding under the company's credit facility. The company subsequently borrowed $60.0 million on this credit facility in order to finance the $73.2 million acquisition of the Alexandria System in November 1992.
 During the first three quarters of fiscal 1993, the company redeemed $12.0 million of its 13 percent Subordinated Debentures due 2000 at amounts greater than their principal amount. The company recognized an extraordinary loss before income taxes related to these transactions totalling $1.4 million, or 10 cents per share, in fiscal 1993. In May 1993, the company redeemed the remaining $138.0 million of 13 percent Subordinated Debentures due 2000 at 105.78 percent of their principal amount. The company recognized an extraordinary loss, before income taxes, related to this transaction of $12.7 million, or 89 cents per share, in fiscal 1993.
 The company also changed its method of accounting for income taxes effective June 1, 1992. The cumulative effect of the change in accounting method was a decrease in net losses of $3.9 million, or 27 cents per share, during fiscal 1993.
 Fourth Quarter Results
 For the fourth quarter of fiscal 1993, the company reported an increase in total revenues of 24 percent from $26.6 million reported in fiscal 1992 to $33.1 million reported in fiscal 1993. Disregarding the effect of the purchase of the Alexandria System, total revenues would have increased $2.6 million, or 10 percent. Operating income before depreciation and amortization decreased approximately 1 percent from $12.7 million reported in fiscal 1992 to $12.6 million reported in fiscal 1993. This decrease was the result of the company's recognition in the fourth quarter of fiscal 1993 of $2.2 million of non-cash compensation expense related to the granting of employee stock options. No such expense was recognized in the fourth quarter of fiscal 1992. Disregarding the effect of the Alexandria System purchase and the expense related to the stock option grants, operating income before depreciation and amortization would have increased 5 percent.
 Jones Intercable is one of the largest cable television operators in the United States. It owns or manages cable operations in over 20 states and three countries.
 For more detailed financial information, contact the Investor Relations department of Jones Intercable at 303-792-3111 or write 9697 E. Mineral Avenue, Englewood, CO 80112.
 JONES INTERCABLE INC.
 FINANCIAL HIGHLIGHTS
 (stated in thousands except per share data)
 For The Year Ended Percent
 May 31, May 31, Increase
 1993 1992 (Decrease)
 Revenues from Cable
 Television Operations:
 Subscriber Service Fees $105,488 $ 87,979 20
 Management Fees 17,104 16,220 5
 Fund Fees and Distributions --- 26,790 ---
 Total Revenues $122,592 $130,989 (6)
 Operating, General and
 Administrative Expenses $ 71,360 $ 55,759 28
 Operating Income Before
 Depreciation and
 Amortization $ 51,232 $ 75,230 (32)
 Depreciation and
 Amortization $ 42,720 $ 39,586 8
 Net Income (Loss) $(56,790) $ 19,579 ---
 Income (Loss) Per Class A
 Common and Common Share:
 Primary-
 Income (loss) before
 extraordinary items $ (2.82) $ 1.30 ---
 Extraordinary items (1.43) .29 ---
 Accounting change .27 --- ---
 $ (3.98) $ 1.59 ---
 Fully Diluted-
 Income before
 extraordinary items --- $ 1.27 ---
 Extraordinary items --- .26 ---
 --- $ 1.53 ---
 Weighted Average Number of Class A
 Common and Common Shares Outstanding:
 Primary 14,277 12,294 16
 Fully-Diluted --- 13,828 ---
 May 31, May 31, Percent
 Unaudited Balance Sheet Data 1993 1992 Change
 Total Assets $ 399,572 $ 357,252 12
 Total Debt $ 327,214 $ 299,300 9
 Total Shareholders'
 Investment $ 31,649 $ 26,875 18
 JONES INTERCABLE INC.
 UNAUDITED FINANCIAL HIGHLIGHTS
 (stated in thousands except per share data)
 For Three Months Ended Percent
 May 31, May 31, Increase
 1993 1992 (Decrease)
 Revenues from Cable
 Television Operations:
 Subscriber Service Fees $ 28,692 $ 22,439 28
 Management Fees 4,369 4,181 4
 Total Revenues $ 33,061 $ 26,620 24
 Operating, General and
 Administrative Expenses $ 20,419 $ 13,915 47
 Operating Income Before
 Depreciation and
 Amortization $ 12,642 $ 12,705 (1)
 Depreciation and
 Amortization $ 10,877 $ 9,535 14
 Net Loss $(27,677) $ (9,296) 198
 Loss Per Class A
 Common and Common Share:
 Loss before extraordinary
 items $ (.87) $ (.26) 235
 Extraordinary items (.74) (.46) 61
 $ (1.61) $ (.72) 124
 Weighted Average Number of
 Class A Common and Common Shares
 Outstanding 17,192 12,873 34
 -0- 9/2/93
 /CONTACT: Kevin P. Coyle of Jones Intercable, 303-792-3111/
 (JOIN)


CO: Jones Intercable Inc. ST: Colorado IN: TLS SU: ERN

BB -- DV001 -- 8269 09/02/93 09:03 EDT
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