Jones Intercable Inc. said Thursday that it believes new benchmark cable rate regulations by the Federal Communications Commission will require the company to reduce rates for certain regulated services.
The country’s seventh largest cable operator said the regs will result in a 4 .5% annual revenue reduction, about $ 5.5 million, and a 9% decrease in operating income before depreciation and amortization, about $ 5.2 million.
Jones, based in Englewood, Colo., said it plans to mitigate reductions through new service offerings, product marketing and repackaging and targeted non-subscriber acquisition marketing.
For its latest fiscal year ended May 31, Jones reported an 18% increase in revenues from subscriber service fees and management fees, to $ 122.6 million.
Total revenues decreased 6% to $ 122.6 million. The company pointed out that this decrease results from recognition of a $ 26.8 million liquidation distribution from the sale of systems during fiscal 1992 and that no such distribution was recognized during fiscal 1993.
Operating income before depreciation and amortization for the year was $ 51.2 million, a decrease of $ 24.0 million from the $ 75.2 million reported in fiscal 1992. The company noted that disregarding the net effect of two system transactions, stock option expense and a liquidation distribution recognized during the third quarter of fiscal 1992, operating income before depreciation would have increased $ 4.0 million, or 8%, for the year.
The company’s net loss for the year totaled $ 56.8 million, or $ 3.98 a share , compared to last year’s net income of $ 19.6 million, or $ 1.59 a share. The net loss before extraordinary losses resulting from the company’s ongoing restructuring and an accounting change totaled $ 2.82 per share.
Revenues from subscriber service fees increased 20% to $ 105.5 million.
For its fourth quarter, the company said, total revenues increased 24% to $ 33.1 million. Disregarding the effect of a system purchase, total revenues would have increased $ 2.6 million, or 10%.