##### 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 March 31, 2010
 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
    
    98101(Address of Principal Executive Offices)
    
    (Zip Code)
 
 
  þ o
 o o
  Large accelerated filer oAccelerated filer oNon-accelerated filer o(Do not check if a smaller reporting company)Smaller Reporting Company þ  o þ




---



TABLE OF CONTENTS  PART 1  FINANCIAL INFORMATIONITEM 1. Financial StatementsNOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTSPART I (continued)ITEM 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.AEX-31.BEX-32.AEX-32.B    Table of Contents  
  
  
 March 31,
    
    
    December 31,2010
    
    
    2009ASSETSCash
    
    $
    529,567
    
    
    $
    1,339,369Accounts receivable, net of allowance of
$12,250 and $11,250, respectively
    
    
    197,029
    
    
    
    333,366Due from affiliates
    
    
    82,395
    
    
    
    53,628Prepaid expenses
    
    
    215,417
    
    
    
    65,405Property and equipment, net of accumulated
depreciation of $15,645,876 and $15,392,597
respectively
    
    
    6,022,787
    
    
    
    5,915,231Franchise agreements, net of accumulated
amortization of $9,995,974
    
    
    9,606,966
    
    
    
    9,606,966Total assets
    
    $
    16,654,161
    
    
    $
    17,313,965LIABILITIES AND PARTNERS CAPITAL (DEFICIT)Accounts payable and accrued expenses
    
    $
    717,903
    
    
    $
    837,047Due to Managing General Partner and affiliates
    
    
    130,425
    
    
    
    79,141Deposits
    
    
    25,355
    
    
    
    22,913Subscriber prepayments
    
    
    237,794
    
    
    
    249,443Total liabilities
    
    
    1,111,477
    
    
    
    1,188,544Partners capital (deficit):General Partners:Contributed capital, net
    
    
    (25,367
    )
    
    
    (25,367
    )Accumulated deficit
    
    
    (8,758
    )
    
    
    (11,620
    )(34,125
    )
    
    
    (36,987
    )Limited Partners:Contributed capital, net (49,656 units)
    
    
    16,444,002
    
    
    
    17,312,982Accumulated deficit
    
    
    (867,193
    )
    
    
    (1,150,574
    )15,576,809
    
    
    
    16,162,408Total partners capital
    
    
    15,542,684
    
    
    
    16,125,421Total liabilities and partners capital
    
    $
    16,654,161
    
    
    $
    17,313,965




---



##### Table of Contents



For the three months ended March 31,2010
    
    
    2009Service revenues
    
    $
    2,403,527
    
    
    $
    2,379,704Expenses:Cable system
operations / cost of revenue  (including $32,297 and $34,940 to
affiliates
in 2009 and 2008, respectively),
excluding
depreciation shown below
    
    
    230,425
    
    
    
    221,577General and administrative (including
$238,427 and $240,720 to affiliates
in 2009 and 2008, respectively)
    
    
    643,899
    
    
    
    601,327Programming / cost of revenue (including
$11,874 and $6,458 to affiliates in
2009 and 2008, respectively)
    
    
    931,882
    
    
    
    884,023Depreciation / cost of revenue
    
    
    301,284
    
    
    
    300,014Gain on disposal of assets
    
    
    (377
    )
    
    
    2,107,113
    
    
    
    2,006,941Income from operations
    
    
    296,414
    
    
    
    372,763Other income (expense):Interest income and other, net
    
    
    (10,171
    )
    
    
    (4,811
    )(10,171
    )
    
    
    (4,811
    )Net income
    
    $
    286,243
    
    
    $
    367,952Allocation of net income:General Partners (1%)
    
    $
    2,862
    
    
    $
    3,680Limited Partners (99%)
    
    $
    283,381
    
    
    $
    364,272Net income per limited
partnership unit (49,656 units):
    
    
    5.71
    
    
    
    7.34




---



##### Table of Contents



For the three months ended March 31,2010
    
    
    2009CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    286,243
    
    
    $
    367,952Adjustments to reconcile net income to
cash provided by operating activities:Depreciation
    
    
    301,284
    
    
    
    300,014Gain on sale of assets
    
    
    (377
    )
    
    
    (Increase) decrease in operating assets:Accounts receivable
    
    
    136,337
    
    
    
    32,298Due from affiliates
    
    
    (28,767
    )
    
    
    (2,041
    )Prepaid expenses
    
    
    (150,012
    )
    
    
    (65,902
    )Increase (decrease) in operating liabilities:Accounts payable and accrued expenses
    
    
    (119,144
    )
    
    
    22,836Due to Managing General Partner and affiliates
    
    
    51,284
    
    
    
    8,587Deposits
    
    
    2,442
    
    
    
    1,655Subscriber prepayments
    
    
    (11,649
    )
    
    
    37,897Net cash provided by operating activities
    
    
    467,641
    
    
    
    703,296CASH FLOWS FROM INVESTING ACTIVITIES:Purchase of property and equipment
    
    
    (410,963
    )
    
    
    (313,399
    )Proceeds from the sale of assets
    
    
    2,500
    
    
    
    Net cash used in investing activities
    
    
    (408,463
    )
    
    
    (313,399
    )CASH FLOWS FROM FINANCING ACTIVITIES:Distribution to limited partners
    
    
    (868,980
    )
    
    
    (1,241,400
    )Net cash used in financing activities
    
    
    (868,980
    )
    
    
    (1,241,400
    )DECREASE IN CASH
    
    
    (809,802
    )
    
    
    (851,503
    )CASH, beginning of period
    
    
    1,339,369
    
    
    
    1,734,024CASH, end of period
    
    $
    529,567
    
    
    $
    882,521




---



##### Table of Contents



NORTHLAND CABLE PROPERTIES SEVEN LIMITED PARTNERSHIP
 
 
 NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 (1) Basis of Presentation
  (2) Intangible Assets
  (3) Litigation
  (4) Potential Sale of Systems




---



##### Table of Contents



(5) Fair Value of Assets
  
    
    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
    
    $
    529,567
    
    
    $
    529,567
    
    
    $
    
    
    
    $
    
  Total
    
    
    Level 1
    
    
    Level 2
    
    
    Level 3Cash
    
    $
    1,339,369
    
    
    $
    1,339,369
    
    
    $
    
    
    
    $
    
 Fair Value Measurements and Disclosures
 (6) Accounting Pronouncements Issued Not Yet Adopted
 Revenue Arrangements with Multiple
Deliverables




---



##### Table of Contents



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, 2010 and 2009
   
    
    $1,689,094 (70%) from basic and expanded video services,
    
    $330,594 (14%) from high speed Internet services
    
    $112,709 (5%) from telephony services
    
    $91,694 (4%) from premium video services
    
    $51,225 (2%) from advertising
    
    $44,099 (2%) from late fees
    
    $84,112 (3% ) from other sources.




---



##### Table of Contents



Liquidity and Capital Resources
     Obligations and Commitments
  Payments Due By PeriodLess than 1
    
    
    13
    
    
    35
    
    
    More thanTotal
    
    
    year
    
    
    Years
    
    
    years
    
    
    5 yearsMinimum operating lease payments
    
    $
    28,933
    
    
    $
    11,200
    
    
    $
    17,733
    
    
    
    
    
    
    
    
 
 (a)
    
    These contractual obligations do not include accounts payable and accrued
liabilities, which are expected to be paid in 2010.(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 pole rentals are based on pole usage and are cancelable on short notice. The
Partnership does however anticipate that such rentals will recur. Pole rental expense
was $207,735 in 2009. Capital Expenditures
   Critical Accounting Policies




---



##### Table of Contents



Revenue Recognition
  Property and Equipment
   Intangible Assets
   
 ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
  
 ITEM 4. C ontrols and Procedures




---



##### Table of Contents



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, 2010
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, 2010 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, 2010
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, 2010
pursuant to section 906 of the Sarbanes-Oxley Act




---



##### Table of Contents



SIGNATURES
  NORTHLAND CABLE PROPERTIES SEVEN LIMITED PARTNERSHIP
 
 SIGNATURES
    
    CAPACITIES
    
    DATE/S/ RICHARD I. CLARK

Richard I. Clark
    
    Executive Vice President, Treasurer and
Assistant Secretary
    
    5-14-10/S/ GARY S. JONES

Gary S. Jones
    
    President
    
    5-14-10