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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 1934For the quarterly period endedMarch 31, 2009
 or
 o
    
    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934For 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
    
    98101(Address of Principal Executive Offices)
    
    (Zip Code)
 (Registrants telephone number, including area code)
 (Former name, former address and former fiscal year, if changed since last report)
  þ o
  o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ(Do not check if a smaller reporting company)
  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 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 ExhibitsSIGNATURESEX-31.(A)EX-31.(B)EX-32.(A)EX-32.(B)    Table of Contents  NORTHLAND CABLE PROPERTIES SEVEN LIMITED PARTNERSHIP
 NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 (1) Basis of Presentation
  (2) Intangible Assets
   (3) Notes Payable
  (4) Litigation
  (5) Potential Sale of Systems




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(6) Fair Value of Assets and Liabilities
  
    
    Level 1  inputs are quoted prices (unadjusted) in active markets for identical
assets or liabilities.
    
    Level 2  quoted prices for similar instruments in active markets or quoted prices
for identical or similar instruments in markets that are not active.
    
    Level 3  significant inputs are unobservable for the asset or liability.
  Total
    
    
    Level 1
    
    
    Level 2
    
    
    Level 3Cash
    
    $
    882,521
    
    
    $
    882,521
    
    
    $
    
    
    
    $
    




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March 31,
    
    
    December 31,2009
    
    
    2008ASSETSCash
    
    $
    882,521
    
    
    $
    1,734,024Accounts receivable
    
    
    239,659
    
    
    
    271,957Due from affiliates
    
    
    29,667
    
    
    
    27,626Prepaid expenses
    
    
    127,802
    
    
    
    61,900Property and equipment, net of accumulated
depreciation of $14,588,353 and $14,304,219
respectively
    
    
    5,583,548
    
    
    
    5,570,163Franchise agreements, net of accumulated
amortization of $9,995,974
    
    
    9,606,966
    
    
    
    9,606,966Total assets
    
    $
    16,470,163
    
    
    $
    17,272,636LIABILITIES AND PARTNERS CAPITAL (DEFICIT)Accounts payable and accrued expenses
    
    $
    761,550
    
    
    $
    738,714Due to Managing General Partner and affiliates
    
    
    97,706
    
    
    
    89,119Deposits
    
    
    26,250
    
    
    
    24,595Subscriber prepayments
    
    
    263,244
    
    
    
    225,347Total liabilities
    
    
    1,148,750
    
    
    
    1,077,775Partners
capital (deficit):General Partners:Contributed capital, net
    
    
    (25,367
    )
    
    
    (25,367
    )Accumulated deficit
    
    
    (19,660
    )
    
    
    (23,340
    )(45,027
    )
    
    
    (48,707
    )Limited Partners:Contributed capital, net
    
    
    17,312,982
    
    
    
    18,554,382Accumulated deficit
    
    
    (1,946,542
    )
    
    
    (2,310,814
    )15,366,440
    
    
    
    16,243,568Total partners capital
    
    
    15,321,413
    
    
    
    16,194,861Total liabilities and partners capital
    
    $
    16,470,163
    
    
    $
    17,272,636




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For the three months ended March 31,2009
    
    
    2008Service revenues
    
    $
    2,379,704
    
    
    $
    2,211,168Expenses:Cable system operations / cost of revenue
(including $34,940 and $31,299 to affiliates
in 2009 and 2008, respectively), excluding
depreciation shown below
    
    
    221,577
    
    
    
    227,412General and administrative (including
$240,720 and $234,256 to affiliates
in 2009 and 2008, respectively)
    
    
    601,327
    
    
    
    563,435Programming / cost of revenue (including
$6,458 and $2,901 to affiliates in
2009 and 2008, respectively)
    
    
    884,023
    
    
    
    809,333Depreciation / cost of revenue
    
    
    300,014
    
    
    
    300,932Gain on disposal of assets
    
    
    
    
    
    
    (2,393
    )2,006,941
    
    
    
    1,898,719Income from operations
    
    
    372,763
    
    
    
    312,449Other income (expense):Interest expense and amortization of loan fees
    
    
    
    
    
    
    (22,979
    )Interest income and other, net
    
    
    (4,811
    )
    
    
    (20,350
    )(4,811
    )
    
    
    (43,329
    )Net income
    
    $
    367,952
    
    
    $
    269,120Allocation of net income:General Partners (1%)
    
    $
    3,680
    
    
    $
    2,691Limited Partners (99%)
    
    $
    364,272
    
    
    $
    266,429Net income per limited partnership unit (49,656 units):
    
    
    7.41
    
    
    
    5.42




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For the three months ended March 31,2009
    
    
    2008CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    367,952
    
    
    $
    269,120Adjustments to reconcile net income to
cash provided by operating activities:Depreciation
    
    
    300,014
    
    
    
    300,932Loan fee amortization
    
    
    
    
    
    
    9,560Gain on sale of assets
    
    
    
    
    
    
    (2,393
    )(Increase) decrease in operating assets:Accounts receivable
    
    
    32,298
    
    
    
    28,286Due from affiliates
    
    
    (2,041
    )
    
    
    71,944Prepaid expenses
    
    
    (65,902
    )
    
    
    (9,011
    )Increase (decrease) in operating liabilities:Accounts payable and accrued expenses
    
    
    22,836
    
    
    
    (188,774
    )Due to Managing General Partner and affiliates
    
    
    8,587
    
    
    
    25,202Deposits
    
    
    1,655
    
    
    
    1,905Subscriber prepayments
    
    
    37,897
    
    
    
    43,068Net cash provided by operating activities
    
    
    703,296
    
    
    
    549,839CASH FLOWS FROM INVESTING ACTIVITIES:Purchase of property and equipment
    
    
    (313,399
    )
    
    
    (71,875
    )Proceeds from the sale of assets
    
    
    
    
    
    
    8,700Net cash used in investing activities
    
    
    (313,399
    )
    
    
    (63,175
    )CASH FLOWS FROM FINANCING ACTIVITIES:Principal payments on borrowings
    
    
    
    
    
    
    (133,724
    )Distribution to limited partners
    
    
    (1,241,400
    )
    
    
    Net cash used in financing activities
    
    
    (1,241,400
    )
    
    
    (133,724
    )(DECREASE) INCREASE IN CASH
    
    
    (851,503
    )
    
    
    352,940CASH, beginning of period
    
    
    1,734,024
    
    
    
    928,495CASH, end of period
    
    $
    882,521
    
    
    $
    1,281,435SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:Cash paid during the period for interest
    
    $
    
    
    
    $
    13,419




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PART I (continued)
 
 ITEM 2. Managements Discussion and Analysis of Financial Condition and Results of
Operations
 Results of Operations  Three Months Ended March 31, 2009 and 2008
   
    
    $1,742,286 (73%) from basic and expanded services,
    
    $103,265 (4%) from premium services
    
    $12,026 (1%) from digital services
    
    $274,570 (11%) from high speed Internet services
    
    $63,699 (3%) from telephony services
    
    $69,158 (3%) from advertising
    
    $43,765 (2%) from late fees
    
    $70,935 (3 %) from other sources.




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Liquidity and Capital Resources
     Notes Payable
  Obligations and Commitments
  Payments Due By PeriodLess than 1
    
    1  3
    
    3  5
    
    More thanTotal
    
    year
    
    Years
    
    years
    
    5 yearsMinimum operating lease payments
    
    $
    17,331
    
    
    $
    17,331
    
    
    
    
    
    
    
    
    
    
    
    
 (a)
    
    These contractual obligations do not include accounts payable and accrued
liabilities, which are expected to be paid in 2009.(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.
 Capital Expenditures




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Critical Accounting Policies
  Revenue Recognition
  Property and Equipment
   Intangible Assets
   
 ITEM 3. Quantitative and Qualitative Disclosures About Market Risk




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ITEM 4. C ontrols and Procedures




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Legal proceedings
    
 Risk Factors
  
 Changes in securities
  
 Defaults upon senior securities
  
 Submission of matters to a vote of security holders
  
 Other information
  
 Exhibits
 (a)
    
    Exhibit Index
 31 (a).
    
    Certification of Chief Executive Officer of Northland
Communications Corporation, the Managing General Partner, dated
May 14, 2009
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 May 14, 2009 pursuant to section 302 of the Sarbanes-Oxley Act32 (a).
    
    Certification of Chief Executive Officer of Northland
Communications Corporation, the Managing General Partner, dated
May 14, 2009
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 May 14, 2009
pursuant to section 906 of the Sarbanes-Oxley Act




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SIGNATURES
  NORTHLAND CABLE PROPERTIES SEVEN LIMITED PARTNERSHIP
 
 SIGNATURES
    
    CAPACITIES
    
    DATE/S/ RICHARD I. CLARK
    
    Executive Vice President, Treasurer and
    
    5-14-09Richard I. Clark
    
    Assistant
Secretary/S/ GARY S. JONES
    
    President
    
    5-14-09Gary S. Jones