##### 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 endedJune 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)
  (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 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  
  
  
 June 30,
    
    
    December 31,2007
    
    
    2006ASSETSCash
    
    $
    936,783
    
    
    $
    324,241Accounts receivable
    
    
    186,328
    
    
    
    174,855Due from affiliates
    
    
    33,979
    
    
    
    60,334Prepaid expenses
    
    
    57,747
    
    
    
    80,484System sale receivable
    
    
    
    
    
    
    926,027Property and equipment, net of accumulated
depreciation of $12,606,042 and $11,921,108,
respectively
    
    
    6,230,951
    
    
    
    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 $787,031 and $767,912, respectively
    
    
    66,919
    
    
    
    86,038Total assets
    
    $
    17,119,673
    
    
    $
    17,837,162LIABILITIES AND PARTNERS CAPITAL (DEFICIT)Accounts payable and accrued expenses
    
    $
    771,364
    
    
    $
    841,633Due to Managing General Partner and affiliates
    
    
    84,068
    
    
    
    49,562Deposits
    
    
    21,555
    
    
    
    16,665Subscriber prepayments
    
    
    152,310
    
    
    
    167,464Notes payable
    
    
    887,970
    
    
    
    2,096,676Total liabilities
    
    
    1,917,267
    
    
    
    3,172,000Partners capital (deficit):General Partners:Contributed capital, net
    
    
    (25,367
    )
    
    
    (25,367
    )Accumulated deficit
    
    
    (33,265
    )
    
    
    (38,637
    )(58,632
    )
    
    
    (64,004
    )Limited Partners:Contributed capital, net
    
    
    18,554,382
    
    
    
    18,554,382Accumulated deficit
    
    
    (3,293,344
    )
    
    
    (3,825,216
    )15,261,038
    
    
    
    14,729,166Total partners capital
    
    
    15,202,406
    
    
    
    14,665,162Total liabilities and partners capital
    
    $
    17,119,673
    
    
    $
    17,837,162




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For the three months ended June 30,2007
    
    
    2006Service revenues
    
    $
    2,233,538
    
    
    $
    2,170,931Expenses:Cable system operations (including
$25,945 and $46,940 to affiliates in
2007 and 2006, respectively), excluding
depreciation and amortization shown below
    
    
    202,823
    
    
    
    193,915General and administrative (including
$218,002 and $219,882 to affiliates
in 2007 and 2006, respectively)
    
    
    598,298
    
    
    
    618,595Programming (including $2,181 and
$1,272 to affiliates in 2007 and 2006,
respectively)
    
    
    797,032
    
    
    
    723,492Depreciation
    
    
    363,625
    
    
    
    367,903(Gain) loss on disposal of assets
    
    
    (685
    )
    
    
    2721,961,093
    
    
    
    1,904,177Income from operations
    
    
    272,445
    
    
    
    266,754Other income (expense):Interest expense and amortization of loan fees
    
    
    (32,823
    )
    
    
    (96,894
    )Interest income and other, net
    
    
    746
    
    
    
    1,035(32,077
    )
    
    
    (95,859
    )Net income
    
    $
    240,368
    
    
    $
    170,895Allocation of net income:General Partners
    
    $
    2,404
    
    
    $
    1,709Limited Partners
    
    $
    237,964
    
    
    $
    169,186Net income per limited
partnership unit (49,656 units):
    
    $
    5
    
    
    $
    3




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For the six months ended June 30,2007
    
    
    2006Service revenues
    
    $
    4,429,557
    
    
    $
    4,288,367Expenses:Cable system operations (including
$58,933 and $82,506 to affiliates in
2007 and 2006, respectively), excluding
depreciation and amortization shown below
    
    
    404,999
    
    
    
    390,301General and administrative (including
$426,572 and $434,893 to affiliates
in 2007 and 2006, respectively)
    
    
    1,166,884
    
    
    
    1,200,862Programming (including $4,071 and
$2,266 to affiliates in 2007 and 2006,
respectively)
    
    
    1,589,039
    
    
    
    1,439,281Depreciation
    
    
    722,321
    
    
    
    762,659(Gain) loss on disposal of assets
    
    
    (1,887
    )
    
    
    5443,881,356
    
    
    
    3,793,647Income from operations
    
    
    548,201
    
    
    
    494,720Other income (expense):Interest expense and amortization of loan fees
    
    
    (71,932
    )
    
    
    (191,939
    )Interest income and other, net
    
    
    1,047
    
    
    
    1,512(70,885
    )
    
    
    (190,427
    )Income from continuing operations
    
    
    477,316
    
    
    
    304,293Income from discontinued operations (note 6)
    
    
    59,928
    
    
    
    Net income
    
    $
    537,244
    
    
    $
    304,293Allocation of net income:General Partners
    
    $
    5,372
    
    
    $
    3,043Limited Partners
    
    $
    531,872
    
    
    $
    301,250Income from continuing operations per limited
partnership unit (49,656 units):
    
    $
    10
    
    
    $
    6Income from discontinued operations per limited
partnership unit (49,656 units):
    
    $
    1
    
    
    $
    




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For the six months ended June 30,2007
    
    
    2006CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    537,244
    
    
    $
    304,293Adjustments to reconcile net income to
cash provided by operating activities:Depreciation
    
    
    722,321
    
    
    
    762,659Loan fee amortization
    
    
    19,119
    
    
    
    19,119(Gain) loss on sale of assets
    
    
    (1,887
    )
    
    
    544Gain from discontinued operations
    
    
    (59,928
    )
    
    
    (Increase) decrease in operating assets:Accounts receivable
    
    
    (11,473
    )
    
    
    80,615Due from affiliates
    
    
    26,355
    
    
    
    (357
    )Prepaid expenses
    
    
    22,737
    
    
    
    (33,083
    )Increase (decrease) in operating liabilities:Accounts payable and accrued expenses
    
    
    (70,269
    )
    
    
    (197,091
    )Due to Managing General Partner and affiliates
    
    
    34,506
    
    
    
    13,761Deposits
    
    
    4,890
    
    
    
    800Subscriber prepayments
    
    
    (15,154
    )
    
    
    26,598Net cash provided by operating activities
    
    
    1,208,461
    
    
    
    977,858CASH FLOWS FROM INVESTING ACTIVITIES:Purchase of property and equipment
    
    
    (378,815
    )
    
    
    (684,883
    )Proceeds from sale of systems
    
    
    985,955
    
    
    
    Proceeds from the sale of assets
    
    
    5,647
    
    
    
    15,075Net cash provided by (used in) investing activities
    
    
    612,787
    
    
    
    (669,808
    )CASH FLOWS FROM FINANCING ACTIVITIES:Principal payments on borrowings
    
    
    (1,208,706
    )
    
    
    (469,967
    )Net cash used in financing activities
    
    
    (1,208,706
    )
    
    
    (469,967
    )INCREASE (DECREASE) IN CASH
    
    
    612,542
    
    
    
    (161,917
    )CASH, beginning of period
    
    
    324,241
    
    
    
    877,365CASH, end of period
    
    $
    936,783
    
    
    $
    715,448SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:Cash paid during the period for interest
    
    $
    30,358
    
    
    $
    185,307




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NORTHLAND CABLE PROPERTIES SEVEN LIMITED PARTNERSHIP
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 (1) Basis of Presentation
   (2) Intangible Assets
   2007 (6 months)
    
    $
    19,1202008
    
    
    38,2402009
    
    
    9,559$
    66,919
 (3) Notes Payable




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2007
    
    
    224,6722008
    
    
    534,8922009
    
    
    128,406$
    887,970
   (4) Litigation
     (5) Potential Sale of Systems
 Accounting for the Impairment or Disposal of Long-Lived
Assets.
  (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  Six Months Ended June 30, 2007 and 2006
   
    
    $3,482,144 (79%) from basic and expanded services,
    
    $261,776 (6%) from premium services
    
    $34,567 (1%) from digital services
    
    $331,654 (7%) from high speed Internet services
    
    $108,331 (2%) from advertising
    
    $86,878 (2%) from late fees
    
    $124,207 (3%) from other sources.




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Results of Continuing Operations  Three Months Ended June 30, 2007 and 2006
   
    
    $1,755,555 (79%) from basic and expanded services,
    
    $132,367 (6%) from premium services
    
    $15,457 (1%) from digital services
    
    $176,790 (8%) from high speed Internet services
    
    $53,729 (2%) from advertising
    
    $43,324 (2%) from late fees
    
    $56,316 (2 %) from other sources.




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Liquidity and Capital Resources
     Notes Payable
    2007
    
    
    224,6722008
    
    
    534,8922009
    
    
    128,406$
    887,970




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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
    
    $
    887,970
    
    
    $
    492,118
    
    
    $
    395,852
    
    
    
    
    
    
    
    Minimum operating lease payments
    
    
    26,868
    
    
    
    11,940
    
    
    
    14,928
    
    
    
    
    
    
    
    Total
    
    $
    914,838
    
    
    $
    504,058
    
    
    $
    410,780
 
 (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. C ontrols and Procedures




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PART II  OTHER INFORMATION
 
 ITEM 1. 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 August 10, 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 August 10, 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 August 10, 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 August 10,
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
    
    8-10-07/S/ GARY S. JONES

Gary S. Jones
    
    President
    
    8-10-07