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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 1934
 For the quarterly period endedMarch 31, 2008
 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)
 (Registrants telephone number, including area code)
 (Former name, former address and former fiscal year, if changed since last report)
 o þ
  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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UNTIMELY
FILING




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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 ExhibitsSIGNATURESEXHIBIT 31.(A)EXHIBIT 31.(B)EXHIBIT 32.(A)EXHIBIT 32.(B)    Table of Contents  
  
  
 March 31,
    
    
    December 31,2008
    
    
    2007ASSETSCash
    
    $
    1,281,435
    
    
    $
    928,495Accounts receivable
    
    
    190,943
    
    
    
    219,229Due from affiliates
    
    
    33,633
    
    
    
    105,577Prepaid expenses
    
    
    89,233
    
    
    
    80,222Property and equipment, net of accumulated
depreciation of $13,618,962 and $13,320,422,
respectively
    
    
    5,750,350
    
    
    
    5,985,714Franchise 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 $815,710 and $806,150, respectively
    
    
    38,240
    
    
    
    47,800Total assets
    
    $
    16,990,800
    
    
    $
    16,974,003LIABILITIES AND PARTNERS CAPITAL (DEFICIT)Accounts payable and accrued expenses
    
    $
    636,614
    
    
    $
    825,388Due to Managing General Partner and affiliates
    
    
    71,678
    
    
    
    46,476Deposits
    
    
    22,775
    
    
    
    20,870Subscriber prepayments
    
    
    200,864
    
    
    
    157,796Notes payable
    
    
    529,575
    
    
    
    663,299Total liabilities
    
    
    1,461,506
    
    
    
    1,713,829Partners capital (deficit):General Partners:Contributed capital, net
    
    
    (25,367
    )
    
    
    (25,367
    )Accumulated deficit
    
    
    (29,996
    )
    
    
    (32,687
    )(55,363
    )
    
    
    (58,054
    )Limited Partners:Contributed capital, net
    
    
    18,554,382
    
    
    
    18,554,382Accumulated deficit
    
    
    (2,969,725
    )
    
    
    (3,236,154
    )15,584,657
    
    
    
    15,318,228Total partners capital
    
    
    15,529,294
    
    
    
    15,260,174Total liabilities and partners capital
    
    $
    16,990,800
    
    
    $
    16,974,003




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For the three months ended March 31,2008
    
    
    2007Service revenues
    
    $
    2,211,168
    
    
    $
    2,196,019Expenses:Cable system operations (including
$31,299 and $28,528 to affiliates in
2008 and 2007, respectively), excluding
depreciation and amortization shown below
    
    
    227,412
    
    
    
    202,176General and administrative (including
$234,256 and $213,028 to affiliates
in 2008 and 2007, respectively)
    
    
    563,435
    
    
    
    568,586Programming (including $2,901 and
$1,890 to affiliates in 2008 and 2007,
respectively)
    
    
    809,333
    
    
    
    792,007Depreciation
    
    
    300,932
    
    
    
    358,696Gain on disposal of assets
    
    
    (2,393
    )
    
    
    (1,202
    )1,898,719
    
    
    
    1,920,263Income from operations
    
    
    312,449
    
    
    
    275,756Other income (expense):Interest expense and amortization of loan fees
    
    
    (22,979
    )
    
    
    (39,109
    )Interest
income and other, net
    
    
    (20,350
    )
    
    
    301(43,329
    )
    
    
    (38,808
    )Income from continuing operations
    
    $
    269,120
    
    
    $
    236,948Income from discontinued operations (Note 6)
    
    $
    
    
    
    $
    59,928Net income
    
    $
    269,120
    
    
    $
    296,876Allocation of net income:General Partners
    
    $
    2,691
    
    
    $
    2,969Limited Partners
    
    $
    266,429
    
    
    $
    293,907Net income per limited
partnership unit (49,656 units):
    
    $
    5
    
    
    $
    5




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For the three months ended March 31,2008
    
    
    2007CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    269,120
    
    
    $
    296,876Adjustments to reconcile net income to
cash provided by operating activities:Depreciation
    
    
    300,932
    
    
    
    358,696Loan fee amortization
    
    
    9,560
    
    
    
    9,559Gain on sale of assets
    
    
    (2,393
    )
    
    
    (1,202
    )Gain from discontinued operations
    
    
    
    
    
    
    (59,928
    )(Increase) decrease in operating assets:Accounts receivable
    
    
    28,286
    
    
    
    (4,635
    )Due from affiliates
    
    
    71,944
    
    
    
    1,784Prepaid expenses
    
    
    (9,011
    )
    
    
    (962
    )Increase (decrease) in operating liabilities:Accounts payable and accrued expenses
    
    
    (188,774
    )
    
    
    (183,048
    )Due to Managing General Partner and affiliates
    
    
    25,202
    
    
    
    (7,512
    )Deposits
    
    
    1,905
    
    
    
    3,500Subscriber prepayments
    
    
    43,068
    
    
    
    49,476Net cash provided by operating activities
    
    
    549,839
    
    
    
    462,604CASH FLOWS FROM INVESTING ACTIVITIES:Purchase of property and equipment
    
    
    (71,875
    )
    
    
    (179,163
    )Proceeds from sale of systems
    
    
    
    
    
    
    985,955Proceeds from the sale of assets
    
    
    8,700
    
    
    
    4,120Net cash (provided by) used in investing activities
    
    
    (63,175
    )
    
    
    810,912CASH FLOWS FROM FINANCING ACTIVITIES:Principal payments on borrowings
    
    
    (133,724
    )
    
    
    (1,096,370
    )Net cash used in financing activities
    
    
    (133,724
    )
    
    
    (1,096,370
    )INCREASE IN CASH
    
    
    352,940
    
    
    
    177,146CASH, beginning of period
    
    
    928,495
    
    
    
    324,241CASH, end of period
    
    $
    1,281,435
    
    
    $
    501,387SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:Cash paid during the period for interest
    
    $
    13,419
    
    
    $
    30,358




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




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(5) Potential Sale of Systems




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(6) Discontinued Operations




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PART I (continued)
 
 ITEM 2. Managements Discussion and Analysis of Financial Condition and Results of Continuing Operations
 Results of Continuing Operations  Three Months Ended March 31, 2008 and 2007
   
    
    $1,656,505 (75%) from basic and expanded services,
    
    $117,723 (5%) from premium services
    
    $15,435 (1%) from digital services
    
    $222,639 (10%) from high speed Internet services
    
    $30,707 (1%) from telephony services
    
    $69,359 (3%) from advertising
    
    $41,011 (2%) from late fees
    
    $57,789 (3 %) from other sources.




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Liquidity and Capital Resources
     Notes Payable
     Obligations and Commitments




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Payments Due By PeriodLess than 1
    
    1  3
    
    3  5
    
    More thanTotal
    
    year
    
    Years
    
    years
    
    5 yearsNotes payable
    
    $
    529,575
    
    
    $
    529,575
    
    
    
    
    
    
    
    
    
    
    
    Minimum operating lease payments
    
    
    17,727
    
    
    
    11,196
    
    
    $
    6,531
    
    
    
    
    
    
    
    Total
    
    $
    547,302
    
    
    $
    540,771
    
    
    $
    6,531
 
 (a)
    
    These contractual obligations do not include accounts payable and accrued
liabilities, which are expected to be paid in 2008.(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
   Critical Accounting Policies
  Revenue Recognition
  Property and Equipment
   Intangible Assets




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ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
  
 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




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Other information
  
 Exhibits
  31 (a).
    
    Certification of Chief Executive Officer of Northland
Communications Corporation, the Managing General Partner, dated
August 21, 2008
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 August 21, 2008 pursuant to section 302 of the Sarbanes-Oxley Act32 (a).
    
    Certification of Chief Executive Officer of Northland
Communications Corporation, the Managing General Partner, dated
August 21, 2008
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
August 21, 2008
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

Richard I. Clark
    
    Executive Vice President, Treasurer and Assistant Secretary
    
    8-21-08/S/ GARY S. JONES

Gary S. Jones
    
    President
    
    8-21-08