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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, 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)
  (Registrants telephone number, including area code)
  (Former name, former address and former fiscal year, if changed since last report)
  þ o
  o o þ
  o þ




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TABLE OF CONTENTS  PART 1  FINANCIAL INFORMATIONITEM 1. Financial StatementsPART I(continued)ITEM 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  
  
  
 March 31,
    
    
    December 31,2007
    
    
    2006ASSETSCash
    
    $
    501,387
    
    
    $
    324,241Accounts receivable
    
    
    179,490
    
    
    
    174,855Due from affiliates
    
    
    58,550
    
    
    
    60,334Prepaid expenses
    
    
    81,446
    
    
    
    80,484System sale receivable
    
    
    
    
    
    
    926,027Property and equipment, net of accumulated
depreciation of $12,242,417 and $11,921,108,
respectively
    
    
    6,395,766
    
    
    
    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 $777,472 and $767,912, respectively
    
    
    76,479
    
    
    
    86,038Total assets
    
    $
    16,900,084
    
    
    $
    17,837,162LIABILITIES AND PARTNERS CAPITAL (DEFICIT)Accounts payable and accrued expenses
    
    $
    658,585
    
    
    $
    841,633Due to Managing General Partner and affiliates
    
    
    42,050
    
    
    
    49,562Deposits
    
    
    20,165
    
    
    
    16,665Subscriber prepayments
    
    
    216,940
    
    
    
    167,464Notes payable
    
    
    1,000,306
    
    
    
    2,096,676Total liabilities
    
    
    1,938,046
    
    
    
    3,172,000Partners capital (deficit):General Partners:Contributed capital, net
    
    
    (25,367
    )
    
    
    (25,367
    )Accumulated deficit
    
    
    (35,668
    )
    
    
    (38,637
    )(61,035
    )
    
    
    (64,004
    )Limited Partners:Contributed capital, net
    
    
    18,554,382
    
    
    
    18,554,382Accumulated deficit
    
    
    (3,531,309
    )
    
    
    (3,825,216
    )15,023,073
    
    
    
    14,729,166Total partners capital
    
    
    14,962,038
    
    
    
    14,665,162Total liabilities and partners capital
    
    $
    16,900,084
    
    
    $
    17,837,162




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For the three months ended March 31,2007
    
    
    2006Service revenues
    
    $
    2,196,019
    
    
    $
    2,117,436Expenses:Cable system operations (including
$28,528 and $35,566 to affiliates in
2007 and 2006, respectively), excluding
depreciation and amortization shown below
    
    
    202,176
    
    
    
    196,385General and administrative (including
$213,028 and $215,011 to affiliates
in 2007 and 2006, respectively)
    
    
    568,586
    
    
    
    582,265Programming (including $1,890 and
$994 to affiliates in 2007 and 2006,
respectively)
    
    
    792,007
    
    
    
    715,787Depreciation
    
    
    358,696
    
    
    
    394,760(Gain) loss on disposal of assets
    
    
    (1,202
    )
    
    
    2721,920,263
    
    
    
    1,889,469Income from operations
    
    
    275,756
    
    
    
    227,967Other income (expense):Interest expense and amortization of loan fees
    
    
    (39,109
    )
    
    
    (95,046
    )Interest income and other, net
    
    
    301
    
    
    
    477(38,808
    )
    
    
    (94,569
    )Income from continuing operations
    
    $
    236,948
    
    
    $
    133,398Income from
discontinued operations (note 6)
    
    $
    59,928Net income
    
    $
    296,876
    
    
    $
    133,398Allocation of net income:General Partners
    
    $
    2,969
    
    
    $
    1,334Limited Partners
    
    $
    293,907
    
    
    $
    132,064Net income
from continuing operations per limited partnership unit:(49,656 units)
    
    $
    5
    
    
    $
    3Net income
from discontinued operations per limited partnership unit:(49,656 units)
    
    $
    1
    
    
    $
    0




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For the three months ended March 31,2007
    
    
    2006CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    296,876
    
    
    $
    133,398Adjustments to reconcile net income to
cash provided by operating activities:Depreciation
    
    
    358,696
    
    
    
    394,760Loan fee amortization
    
    
    9,559
    
    
    
    9,560(Gain) loss on sale of assets
    
    
    (1,202
    )
    
    
    272Gain from
discontinued operations
    
    
    (59,928
    )(Increase) decrease in operating assets:Accounts receivable
    
    
    (4,635
    )
    
    
    99,426Due from affiliates
    
    
    1,784
    
    
    
    17,837Prepaid expenses
    
    
    (962
    )
    
    
    (16,161
    )Increase (decrease) in operating liabilities:Accounts payable and accrued expenses
    
    
    (183,048
    )
    
    
    (272,496
    )Due to Managing General Partner and affiliates
    
    
    (7,512
    )
    
    
    13,389Deposits
    
    
    3,500
    
    
    
    1,165Subscriber prepayments
    
    
    49,476
    
    
    
    (12,932
    )Net cash provided by operating activities
    
    
    462,604
    
    
    
    368,218CASH FLOWS FROM INVESTING ACTIVITIES:Purchase of property and equipment
    
    
    (179,163
    )
    
    
    (385,670
    )Proceeds from sale of systems
    
    
    985,955
    
    
    
    Proceeds from the sale of assets
    
    
    4,120
    
    
    
    11,004Net cash provided by (used in) investing activities
    
    
    810,912
    
    
    
    (374,666
    )CASH FLOWS FROM FINANCING ACTIVITIES:Principal payments on borrowings
    
    
    (1,096,370
    )
    
    
    (243,674
    )Net cash used in financing activities
    
    
    (1,096,370
    )
    
    
    (243,674
    )INCREASE (DECREASE) IN CASH
    
    
    177,146
    
    
    
    (250,122
    )CASH, beginning of period
    
    
    324,241
    
    
    
    877,365CASH, end of period
    
    $
    501,387
    
    
    $
    627,243SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:Cash paid during the period for interest
    
    $
    30,358
    
    
    $
    89,168




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NORTHLAND CABLE PROPERTIES SEVEN LIMITED PARTNERSHIP
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 (1) Basis of Presentation
  (2) Intangible Assets
   2007 (9 months)
    
    
    28,6802008
    
    
    38,2402009
    
    
    9,559$
    76,479
 (3) Notes Payable
    2007
    
    
    337,0082008
    
    
    534,8922009
    
    
    128,406$
    1,000,306




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(4) Litigation
     (5) Solicitation of Interest from Potential Purchasers
  (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, 2007 and 2006
   
    
    $1,726,589 (79%) from basic and expanded services,
    
    $129,408 (6%) from premium services
    
    $19,110 (1%) from digital services
    
    $154,864 (7%) from high speed Internet services
    
    $54,602 (2%) from advertising
    
    $43,554 (2%) from late fees
    
    $67,892 (3 %) from other sources.




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Liquidity and Capital Resources
     Notes Payable
    2007
    
    
    337,0082008
    
    
    534,8922009
    
    
    128,406$
    1,000,306




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Obligations and Commitments
  Payments Due By PeriodLess than 1
    
    1 - 3
    
    3 -` 5
    
    More thanTotal
    
    year
    
    years
    
    years
    
    5 yearsNotes payable
    
    $
    1,000,306
    
    
    $
    470,731
    
    
    $
    529,575
    
    
    
    
    
    
    
    Minimum operating lease payments
    
    
    29,667
    
    
    
    11,940
    
    
    
    17,727
    
    
    
    
    
    
    
    Total
    
    $
    1,029,973
    
    
    $
    482,671
    
    
    $
    547,302
 
 (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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Intangible Assets
   
 ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
   
 ITEM 4. Controls 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 and Reports on Form 8-K
  31 (a).
    
    Certification of Chief Executive Officer of Northland
Communications Corporation, the Managing General Partner, dated May 14, 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 May 14, 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 May 14, 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 May 14, 2007
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
    
    5-14-07/S/ GARY S. JONES

Gary S. Jones
    
    President
    
    5-14-07