##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the quarterly period ended September 30, 2007
 or
 o
    
    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: 0-16718
 Northland Cable Properties Seven Limited Partnership
 
  Washington
    
    91-1366564(State of Organization)
    
    (I.R.S. Employer Identification No.)101 Stewart Street, Suite 700, Seattle, Washington
    
    98065(Address of Principal Executive Offices)
    
    (Zip Code)
  
   
   þ o
  o o þ
  o þ




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TABLE OF CONTENTS  PART 1  FINANCIAL INFORMATIONITEM 1. Financial StatementsITEM 2. Managements Discussion and Analysis of Financial Condition and Results of Continuing
OperationsITEM 3. Quantitative and Qualitative Disclosures About Market RiskITEM 4. Controls and ProceduresPART II  OTHER INFORMATIONITEM 1. Legal proceedingsITEM 1A Risk FactorsITEM 2 Changes in securitiesITEM 3 Defaults upon senior securitiesITEM 4 Submission of matters to a vote of security holdersITEM 5 Other informationITEM 6 Exhibits and Reports on Form 8-KSIGNATURESEXHIBIT 31.(A)EXHIBIT 31.(B)EXHIBIT 32.(A)EXHIBIT 32.(B)    Table of Contents  
  
  
 September 30,
    
    
    December 31,2007
    
    
    2006ASSETSCash
    
    $
    988,681
    
    
    $
    324,241Accounts receivable
    
    
    226,757
    
    
    
    174,855Due from affiliates
    
    
    32,682
    
    
    
    60,334Prepaid expenses
    
    
    90,353
    
    
    
    80,484System sale receivable
    
    
    
    
    
    
    926,027Property and equipment, net of accumulated
depreciation of $12,973,912 and $11,921,108,
respectively
    
    
    6,103,063
    
    
    
    6,578,217Franchise agreements, net of accumulated
amortization of $9,995,974, respectively
    
    
    9,606,966
    
    
    
    9,606,966Loan fees and other intangibles, net of accumulated
amortization of $796,591 and $767,912, respectively
    
    
    57,359
    
    
    
    86,038Total assets
    
    $
    17,105,861
    
    
    $
    17,837,162LIABILITIES AND PARTNERS CAPITAL (DEFICIT)Accounts payable and accrued expenses
    
    $
    828,108
    
    
    $
    841,633Due to Managing General Partner and affiliates
    
    
    89,207
    
    
    
    49,562Deposits
    
    
    22,960
    
    
    
    16,665Subscriber prepayments
    
    
    138,546
    
    
    
    167,464Notes payable
    
    
    775,634
    
    
    
    2,096,676Total liabilities
    
    
    1,854,455
    
    
    
    3,172,000Partners capital (deficit):General Partners:Contributed capital, net
    
    
    (25,367
    )
    
    
    (25,367
    )Accumulated deficit
    
    
    (32,775
    )
    
    
    (38,637
    )(58,142
    )
    
    
    (64,004
    )Limited Partners:Contributed capital, net
    
    
    18,554,382
    
    
    
    18,554,382Accumulated deficit
    
    
    (3,244,834
    )
    
    
    (3,825,216
    )15,309,548
    
    
    
    14,729,166Total partners capital
    
    
    15,251,406
    
    
    
    14,665,162Total liabilities and partners capital
    
    $
    17,105,861
    
    
    $
    17,837,162




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For the three months ended September 30,2007
    
    
    2006Service revenues
    
    $
    2,228,831
    
    
    $
    2,150,525Expenses:Cable system operations (including
$28,861 and $28,734 to affiliates in
2007 and 2006, respectively), excluding
depreciation and amortization shown below
    
    
    207,607
    
    
    
    203,659General and administrative (including
$212,698 and $215,213 to affiliates
in 2007 and 2006, respectively)
    
    
    613,410
    
    
    
    576,721Programming (including $2,446 and
$1,460 to affiliates in 2007 and 2006,
respectively)
    
    
    783,328
    
    
    
    788,317Depreciation
    
    
    367,870
    
    
    
    366,029(Gain) loss on disposal of assets
    
    
    (100
    )
    
    
    6811,972,115
    
    
    
    1,935,407Income from operations
    
    
    256,716
    
    
    
    215,118Other income (expense):Interest expense and amortization of loan fees
    
    
    5,654
    
    
    
    (92,424
    )Other expense
    
    
    (215,121
    )
    
    
    Interest income
    
    
    1,752
    
    
    
    683(207,715
    )
    
    
    (91,741
    )Net income
    
    $
    49,001
    
    
    $
    123,377Allocation of net income:General Partners
    
    $
    490
    
    
    $
    1,234Limited Partners
    
    $
    48,511
    
    
    $
    122,143Net income per limited partnership unit (49,656 units):
    
    $
    1
    
    
    $
    2




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For the nine months ended September 30,2007
    
    
    2006Service revenues
    
    $
    6,658,387
    
    
    $
    6,438,892Expenses:Cable system operations (including
$92,253 and $113,225 to affiliates in
2007 and 2006, respectively), excluding
depreciation and amortization shown below
    
    
    612,606
    
    
    
    593,959General and administrative (including
$634,811 and $648,125 to affiliates
in 2007 and 2006, respectively)
    
    
    1,780,294
    
    
    
    1,777,582Programming (including $6,517 and
$3,727 to affiliates in 2007 and 2006,
respectively)
    
    
    2,372,367
    
    
    
    2,227,596Depreciation
    
    
    1,090,190
    
    
    
    1,128,693(Gain) loss on disposal of assets
    
    
    (1,987
    )
    
    
    1,2255,853,470
    
    
    
    5,729,055Income from operations
    
    
    804,917
    
    
    
    709,837Other income (expense):Interest expense and amortization of loan fees
    
    
    (66,278
    )
    
    
    (284,363
    )Other expense
    
    
    (215,121
    )
    
    
    Interest income
    
    
    2,798
    
    
    
    2,196(278,601
    )
    
    
    (282,167
    )Income from continuing operations
    
    
    526,316
    
    
    
    427,670Income from discontinued operations (note 6)
    
    
    59,928
    
    
    
    Net income
    
    $
    586,244
    
    
    $
    427,670Allocation of net income:General Partners
    
    $
    5,862
    
    
    $
    4,277Limited Partners
    
    $
    580,382
    
    
    $
    423,393Income from continuing operations per limited partnership unit (49,656 units):
    
    $
    10
    
    
    $
    9Income from discontinued operations per limited partnership unit (49,656 units):
    
    $
    1
    
    
    $
    




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For the nine months ended September 30,2007
    
    
    2006CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    586,244
    
    
    $
    427,670Adjustments to reconcile net income to
cash provided by operating activities:Depreciation
    
    
    1,090,190
    
    
    
    1,128,693Loan fee amortization
    
    
    28,679
    
    
    
    28,680(Gain) loss on sale of assets
    
    
    (1,987
    )
    
    
    1,225Gain from discontinued operations
    
    
    (59,928
    )
    
    
    (Increase) decrease in operating assets:Accounts receivable
    
    
    (51,902
    )
    
    
    66,898Due from affiliates
    
    
    27,652
    
    
    
    21,006Prepaid expenses
    
    
    (9,869
    )
    
    
    (71,406
    )Increase (decrease) in operating liabilities:Accounts payable and accrued expenses
    
    
    (13,525
    )
    
    
    (399,920
    )Due to Managing General Partner and affiliates
    
    
    39,645
    
    
    
    2,704Deposits
    
    
    6,295
    
    
    
    750Subscriber prepayments
    
    
    (28,918
    )
    
    
    (17,844
    )Net cash provided by operating activities
    
    
    1,612,576
    
    
    
    1,188,456CASH FLOWS FROM INVESTING ACTIVITIES:Purchase of property and equipment
    
    
    (620,606
    )
    
    
    (1,188,270
    )Proceeds from sale of systems
    
    
    985,955
    
    
    
    Proceeds from the sale of assets
    
    
    7,557
    
    
    
    41,437Net cash provided by (used in) investing activities
    
    
    372,906
    
    
    
    (1,146,833
    )CASH FLOWS FROM FINANCING ACTIVITIES:Principal payments on borrowings
    
    
    (1,321,042
    )
    
    
    (705,841
    )Net cash used in financing activities
    
    
    (1,321,042
    )
    
    
    (705,841
    )INCREASE (DECREASE) IN CASH
    
    
    664,440
    
    
    
    (664,218
    )CASH, beginning of period
    
    
    324,241
    
    
    
    877,365CASH, end of period
    
    $
    988,681
    
    
    $
    213,147SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:Cash paid during the period for interest
    
    $
    38,273
    
    
    $
    269,816




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NORTHLAND CABLE PROPERTIES SEVEN LIMITED PARTNERSHIP
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 (1) Basis of Presentation
   (2) Intangible Assets
   2007 (3 months)
    
    $
    9,5602008
    
    
    38,2392009
    
    
    9,560$
    57,359
 (3) Notes Payable




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2007
    
    
    112,3362008
    
    
    534,8922009
    
    
    128,406$
    775,634
   (4) Litigation
     (5) Potential Sale of Systems
 Accounting for the Impairment or Disposal of Long-Lived
Assets.




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(6) Discontinued Operations




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PART I
 
 ITEM 2. Managements Discussion and Analysis of Financial Condition and Results of Continuing
Operations
 Results of Continuing Operations  Nine Months Ended September 30, 2007 and 2006
   
    
    $5,171,633 (78%) from basic and expanded services,
    
    $386,610 (6%) from premium services
    
    $50,209 (1%) from digital services
    
    $526,619 (8%) from high speed Internet services
    
    $193,305 (2%) from advertising
    
    $132,054 (2%) from late fees
    
    $197,957 (3%) from other sources.




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Results of Continuing Operations  Three Months Ended September 30, 2007 and 2006
   
    
    $1,689,490 (76%) from basic and expanded services,
    
    $124,836 (6%) from premium services
    
    $15,642 (1%) from digital services
    
    $194,965 (9%) from high speed Internet services
    
    $84,974 (3%) from advertising
    
    $45,176 (2%) from late fees
    
    $73,748 (3%) from other sources.




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Liquidity and Capital Resources
     Notes Payable
    2007
    
    
    112,3362008
    
    
    534,8922009
    
    
    128,406$
    775,634




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Obligations and Commitments
  Payments Due By Period1  3
    
    
    3  5Total
    
    
    Less than 1 year
    
    
    Years
    
    
    years
    
    
    More than 5 yearsNotes payable
    
    $
    775,634
    
    
    $
    513,505
    
    
    $
    262,129
    
    
    
    
    
    
    
    Minimum operating lease payments
    
    
    24,069
    
    
    
    11,940
    
    
    
    12,129
    
    
    
    
    
    
    
    Total
    
    $
    799,703
    
    
    $
    525,445
    
    
    $
    274,258
 (a)
    
    These contractual obligations do not include accounts payable and accrued liabilities,
which are expected to be paid in 2007.(b)
    
    The Partnership also rents utility poles in its operations. Amounts due under these
agreements are not included in the above minimum operating lease payments amounts as,
generally, pole rentals are cancelable on short notice. The Partnership does however
anticipate that such rentals will recur.(c)
    
    Note that obligations related to the Partnerships notes payable exclude interest
expense.
 Capital Expenditures
   Critical Accounting Policies
  Revenue Recognition
  Property and Equipment




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Accounting for the Impairment or Disposal of Long-Lived
Assets.
 Intangible Assets
   
 ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
   
 ITEM 4. Controls and Procedures




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PART II  OTHER INFORMATION
 
 ITEM 1. Legal proceedings
     
 ITEM 1A Risk Factors
  
 ITEM 2 Changes in securities
  
 ITEM 3 Defaults upon senior securities
  
 ITEM 4 Submission of matters to a vote of security holders
  
 ITEM 5 Other information
  
 ITEM 6 Exhibits and Reports on Form 8-K
 (a)
    
    Exhibit Index
 31 (a).
    
    Certification of Chief Executive Officer of Northland
Communications Corporation, the Managing General Partner, dated November 13,
2007 pursuant to section 302 of the Sarbanes-Oxley Act31 (b).
    
    Certification of President (Principal Financial and Accounting
Officer) of Northland Communications Corporation, the Managing General Partner,
dated November 13, 2007 pursuant to section 302 of the Sarbanes-Oxley Act




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32 (a).
    
    Certification of Chief Executive Officer of Northland
Communications Corporation, the Managing General Partner, dated November 13, 2007 pursuant to section 906 of
the Sarbanes-Oxley Act32 (b).
    
    Certification of President (Principal Financial and Accounting
Officer) of Northland Communications Corporation, the Managing General Partner, dated November 13,
2007 pursuant to section 906 of the Sarbanes-Oxley Act
 (b)
    
    Reports on Form 8-KForm 8-K filed on July 7, 2007 disclosing the execution of a purchase and sale agreement
to sell the remaining Partnership assets to Green River Media and Communications, LLC.




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SIGNATURES
  NORTHLAND CABLE PROPERTIES SEVEN LIMITED PARTNERSHIP
 BY: Northland Communications Corporation,       Managing General Partner SIGNATURES
    
    CAPACITIES
    
    DATE/s/ RICHARD I. CLARK

Richard I. Clark
    
    Executive Vice President, Treasurer and 
Assistant Secretary
    
    11-13-07/s/ GARY S. JONES
Gray S. Jones
    
    President
    
    11-13-07