##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q



| |                                                                                            
| | -------------------------------------------------------------------------------------------
| | [X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934

For the quarterly period ended June 30, 2001

or



| |                                                                                               
| | ----------------------------------------------------------------------------------------------
| | [   ] 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

(Exact Name of Registrant as Specified in Charter)


|                        |  |                                     
|----------------------- |  | ------------------------------------
|Washington              |  | 91-1366564                          
|                        |  |                                     
|(State of Organization) |  | (I.R.S. Employer Identification No.)

|                                                   |  |  |            | 
|-------------------------------------------------- |  |  | ---------- | 
|1201 Third Avenue, Suite 3600, Seattle, Washington |  |  | 98101      | 
|                                                   |  |  |            | 
|(Address of Principal Executive Offices)           |  |  | (Zip Code)

|                                                                   
|-------------------------------------------------------------------
|(206) 621-1351
(Registrants telephone number, including area code)

|                                                                                       
|---------------------------------------------------------------------------------------
|N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has subject to such
filing requirements for the past 90 days.

Yes [X]          No [   ]



---

This filing contains      pages. Exhibits index appears on page      .






---

TABLE OF CONTENTS



|                               |                                                                                               |                                        |  |  |  |  |  | 
|------------------------------ | --------------------------------------------------------------------------------------------- | -------------------------------------- |  |  |  |  |  | 
|PART 1  FINANCIAL INFORMATION
|                               | ITEM 1. Financial Statements                                                                 
|                               |                                                                                               | BALANCE SHEETS                        
|                               |                                                                                               | STATEMENTS OF OPERATIONS              
|                               |                                                                                               | STATEMENTS OF OPERATIONS              
|                               |                                                                                               | STATEMENTS OF CASH FLOWS              
|                               |                                                                                               | NOTE TO UNAUDITED FINANCIAL STATEMENTS
|                               | ITEM 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|PART II  OTHER INFORMATION   
|                               | ITEM 1 Legal proceedings                                                                     
|                               | ITEM 2 Changes in securities                                                                 
|                               | ITEM 3 Defaults upon senior securities                                                       
|                               | ITEM 4 Submission of matters to a vote of security holders                                   
|                               | ITEM 5 Other information                                                                     
|                               | ITEM 6 Exhibits and Reports on Form 8-K                                                      
|SIGNATURES                    



---



##### Table of Contents









PART 1  FINANCIAL INFORMATION







ITEM 1. Financial Statements







NORTHLAND CABLE PROPERTIES SEVEN LIMITED PARTNERSHIP
BALANCE SHEETS
(Prepared by the Managing General Partner)

|                                                                                                     |                   |                          |                         |   |             |             |              |   |             |             |  
|---------------------------------------------------------------------------------------------------- | ----------------- | ------------------------ | ----------------------- | - | ----------- | ----------- | ------------ | - | ----------- | ----------- | -
|                                                                                                     |                   |                          |                         |   | June 30,    |             | December 31,
|                                                                                                     |                   |                          |                         |   | 2001        |             | 2000        
|                                                                                                     |                   |                          |                         |   |             |             |             
|                                                                                                     |                   |                          |                         |   | (unaudited) |             |              |   |            
|ASSETS                                                                                               |                   |                          |                         |   |             |             |              |  
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                    
|Cash                                                                                                 |                   | $                        | 569,047                 |   |             | $           | 492,858      |  
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                    
|Accounts receivable                                                                                  |                   |                          | 565,646                 |   |             |             | 597,585      |  
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                    
|Prepaid expenses                                                                                     |                   |                          | 161,464                 |   |             |             | 124,286      |  
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                    
|Due from affiliates                                                                                  |                   |                          | 79,876                  |   |             |             | 41,170       |  
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                    
|Property and equipment, net of accumulated
depreciation of $20,036,310 and $19,025,522,
respectively |                   |                          | 18,650,157              |   |             |             | 17,158,968   |  
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                    
|Intangible assets, net of accumulated
amortization of $12,071,757 and $10,921,274,
respectively      |                   |                          | 12,345,919              |   |             |             | 13,371,825   |  
|                                                                                                     |                   |                          |                         |   |             |             |              |  
|Total assets                                                                                         |                   | $                        | 32,372,109              |   |             | $           | 31,786,692   |  
|                                                                                                     |                   |                          |                         |   |             |             |              |  
|LIABILITIES AND PARTNERS DEFICIT                                                                    |                   |                          |                         |   |             |             |              |  
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                    
|Accounts payable and accrued expenses                                                                |                   | $                        | 1,374,024               |   |             | $           | 2,248,109    |  
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                    
|Due to managing general partner and affiliates                                                       |                   |                          | 118,347                 |   |             |             | 157,340      |  
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                    
|Converter deposits                                                                                   |                   |                          | 51,595                  |   |             |             | 43,580       |  
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                    
|Subscriber prepayments                                                                               |                   |                          | 629,274                 |   |             |             | 633,154      |  
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                    
|Notes payable                                                                                        |                   |                          | 42,126,744              |   |             |             | 40,016,323   |  
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                    
|Interest rate derivative                                                                             |                   |                          | 274,249                 |   |             |             |             |  
|                                                                                                     |                   |                          |                         |   |             |             |              |  
|                                                                                                     |                   |                          | Total liabilities       |   |             | 44,574,233  |              |   |             | 43,098,506  |  
|                                                                                                     |                   |                          |                         |   |             |             |              |  
|Partners deficit:                                                                                   |                   |                          |                         |   |             |             |              |  
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                     | General Partners: |                          |                         |   |             |             |              |   |            
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                     |                   | Contributed capital, net |                         |   | (25,367     | )           |              |   | (25,367     | )          
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                     |                   | Accumulated deficit      |                         |   | (309,122    | )           |              |   | (300,219    | )          
|                                                                                                     |                   |                          |                         |   |             |             |              |  
|                                                                                                     |                   |                          | (334,489                | ) |             |             | (325,586     | )
|                                                                                                     |                   |                          |                         |   |             |             |              |  
|                                                                                                     | Limited Partners: |                          |                         |   |             |             |              |   |            
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                     |                   | Contributed capital, net |                         |   | 18,735,576  |             |              |   | 18,735,576  |            
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                    
|                                                                                                     |                   | Accumulated deficit      |                         |   | (30,603,211 | )           |              |   | (29,721,804 | )          
|                                                                                                     |                   |                          |                         |   |             |             |              |  
|                                                                                                     |                   |                          | (11,867,635             | ) |             |             | (10,986,228  | )
|                                                                                                     |                   |                          |                         |   |             |             |              |  
|                                                                                                     |                   |                          | Total partners deficit |   |             | (12,202,124 | )            |   |             | (11,311,814 | )
|                                                                                                     |                   |                          |                         |   |             |             |              |  
|Total liabilities and partners deficit                                                              |                   | $                        | 32,372,109              |   |             | $           | 31,786,692   |  
|                                                                                                     |                   |                          |                         |   |             |             |              |  

The accompanying notes are an integral part of these balance sheets.

1



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##### Table of Contents









NORTHLAND CABLE PROPERTIES SEVEN LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
(Prepared by the Managing General Partner)

|                                       |                |                                                                                                           |                                |     |                                   |            |            |    |           |            |  
|-------------------------------------- | -------------- | --------------------------------------------------------------------------------------------------------- | ------------------------------ | --- | --------------------------------- | ---------- | ---------- | -- | --------- | ---------- | -
|                                       |                |                                                                                                           |                                |     | For the six months ended June 30,
|                                       |                |                                                                                                           |                                |     |                                  
|                                       |                |                                                                                                           |                                |     | 2001                              |            | 2000      
|                                       |                |                                                                                                           |                                |     |                                   |            |           
|                                       |                |                                                                                                           |                                |     | (unaudited)                      
|Service revenues                       |                | $                                                                                                         | 9,279,104                      |     |                                   | $          | 8,999,858  |   
|                                      
|                                      
|                                      
|                                      
|Expenses:                              |                |                                                                                                           |                                |     |                                   |            |            |   
|                                      
|                                      
|                                      
|                                      
|                                       |                | Cable system operations (including
$117,865 and $101,758 to affiliates in
2001 and 2000, respectively)    |                                |     | 769,587                           |            |            |    | 751,185   |           
|                                      
|                                      
|                                      
|                                      
|                                       |                | General and administrative (including
$876,286 and $855,612 to affiliates
in 2001 and 2000, respectively) |                                |     | 2,229,923                         |            |            |    | 2,096,866 |           
|                                      
|                                      
|                                      
|                                      
|                                       |                | Programming (including $58,248
and $139,294 to affiliates in 2001
and 2000, respectively)                 |                                |     | 2,631,069                         |            |            |    | 2,487,560 |           
|                                      
|                                      
|                                      
|                                      
|Depreciation and amortization          |                |                                                                                                           | 2,514,768                      |     |                                   |            | 2,287,890  |   
|                                       |                |                                                                                                           |                                |     |                                   |            |            |   
|                                       |                |                                                                                                           | 8,145,347                      |     |                                   |            | 7,623,501  |   
|                                       |                |                                                                                                           |                                |     |                                   |            |            |   
|Income from operations                 |                |                                                                                                           | 1,133,757                      |     |                                   |            | 1,376,357  |   
|                                      
|                                      
|                                      
|                                      
|Other income (expense):                |                |                                                                                                           |                                |     |                                   |            |            |   
|                                      
|                                      
|                                      
|                                      
|                                       |                |                                                                                                           | Interest expense               |     |                                   | (1,662,615 | )          |    |           | (1,665,389 | )
|                                      
|                                      
|                                      
|                                      
|                                       |                |                                                                                                           | Interest income and other, net |     |                                   | (48,462    | )          |    |           | (68,999    | )
|                                      
|                                      
|                                      
|                                      
|                                       |                |                                                                                                           | Interest rate derivative       |     |                                   | (258,484   | )          |    |           |           |  
|                                      
|                                      
|                                      
|                                      
|                                       |                |                                                                                                           | Loss on disposal of assets     |     |                                   | (54,506    | )          |    |           | (2,755     | )
|                                       |                |                                                                                                           |                                |     |                                   |            |            |   
|                                       |                |                                                                                                           | (2,024,067                     | )   |                                   |            | (1,737,143 | ) 
|                                       |                |                                                                                                           |                                |     |                                   |            |            |   
|Net loss                               |                | $                                                                                                         | (890,310                       | )   |                                   | $          | (360,786   | ) 
|                                       |                |                                                                                                           |                                |     |                                   |            |            |   
|Allocation of net loss:                |                |                                                                                                           |                                |     |                                   |            |            |   
|                                      
|                                      
|                                      
|                                      
|                                       |                |                                                                                                           | General Partners               |     | $                                 | (8,903     | )          |    | $         | (3,608     | )
|                                       |                |                                                                                                           |                                |     |                                   |            |            |   
|                                       |                |                                                                                                           | Limited Partners               |     | $                                 | (881,407   | )          |    | $         | (357,178   | )
|                                       |                |                                                                                                           |                                |     |                                   |            |            |   
|Net loss per limited partnership unit: |                |                                                                                                           |                                |     |                                   |            |            |   
|                                      
|                                      
|                                      
|                                      
|                                       | (49,656 units) |                                                                                                           | $                              | (18 | )                                 |            | $          | (7 | )        
|                                       |                |                                                                                                           |                                |     |                                   |            |            |   
|Net loss per $1,000 investment         |                | $                                                                                                         | (36                            | )   |                                   | $          | (14        | ) 
|                                       |                |                                                                                                           |                                |     |                                   |            |            |   

The accompanying notes are an integral part of these statements.

2



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##### Table of Contents









NORTHLAND CABLE PROPERTIES SEVEN LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
(Prepared by the Managing General Partner)

|                                       |                |                                                                                                           |                                |    |                                     |          |           |    |           |          |  
|-------------------------------------- | -------------- | --------------------------------------------------------------------------------------------------------- | ------------------------------ | -- | ----------------------------------- | -------- | --------- | -- | --------- | -------- | -
|                                       |                |                                                                                                           |                                |    | For the three months ended June 30,
|                                       |                |                                                                                                           |                                |    |                                    
|                                       |                |                                                                                                           |                                |    | 2001                                |          | 2000     
|                                       |                |                                                                                                           |                                |    |                                     |          |          
|                                       |                |                                                                                                           |                                |    | (unaudited)                        
|Service revenues                       |                | $                                                                                                         | 4,725,047                      |    |                                     | $        | 4,528,424 |   
|                                      
|                                      
|                                      
|                                      
|Expenses:                              |                |                                                                                                           |                                |    |                                     |          |           |   
|                                      
|                                      
|                                      
|                                      
|                                       |                | Cable system operations (including
$57,493 and $48,535 to affiliates in
2001 and 2000, respectively)      |                                |    | 389,741                             |          |           |    | 353,565   |         
|                                      
|                                      
|                                      
|                                      
|                                       |                | General and administrative (including
$428,207 and $436,575 to affiliates
in 2001 and 2000, respectively) |                                |    | 1,145,519                           |          |           |    | 1,072,748 |         
|                                      
|                                      
|                                      
|                                      
|                                       |                | Programming (including $27,477
and $78,519 to affiliates in 2001
and 2000, respectively)                  |                                |    | 1,321,560                           |          |           |    | 1,248,000 |         
|                                      
|                                      
|                                      
|                                      
|Depreciation and amortization          |                |                                                                                                           | 1,280,102                      |    |                                     |          | 1,147,605 |   
|                                       |                |                                                                                                           |                                |    |                                     |          |           |   
|                                       |                |                                                                                                           | 4,136,922                      |    |                                     |          | 3,821,918 |   
|                                       |                |                                                                                                           |                                |    |                                     |          |           |   
|Income from operations                 |                |                                                                                                           | 588,125                        |    |                                     |          | 706,506   |   
|                                      
|                                      
|                                      
|                                      
|Other income (expense):                |                |                                                                                                           |                                |    |                                     |          |           |   
|                                      
|                                      
|                                      
|                                      
|                                       |                |                                                                                                           | Interest expense               |    |                                     | (774,692 | )         |    |           | (827,070 | )
|                                      
|                                      
|                                      
|                                      
|                                       |                |                                                                                                           | Interest income and other, net |    |                                     | (23,006  | )         |    |           | (34,125  | )
|                                      
|                                      
|                                      
|                                      
|                                       |                |                                                                                                           | Interest rate derivative       |    |                                     | (142,672 | )         |    |           |         |  
|                                      
|                                      
|                                      
|                                      
|                                       |                | (Loss) gain on disposal of assets                                                                         |                                |    | (54,506                             | )        |           |    | (8,508    | )       
|                                       |                |                                                                                                           |                                |    |                                     |          |           |   
|                                       |                |                                                                                                           | (994,876                       | )  |                                     |          | (869,703  | ) 
|                                       |                |                                                                                                           |                                |    |                                     |          |           |   
|Net loss                               |                | $                                                                                                         | (406,751                       | )  |                                     | $        | (163,197  | ) 
|                                       |                |                                                                                                           |                                |    |                                     |          |           |   
|Allocation of net loss:                |                |                                                                                                           |                                |    |                                     |          |           |   
|                                      
|                                      
|                                      
|                                      
|                                       |                |                                                                                                           | General Partners               |    | $                                   | (4,068   | )         |    | $         | (1,632   | )
|                                       |                |                                                                                                           |                                |    |                                     |          |           |   
|                                       |                |                                                                                                           | Limited Partners               |    | $                                   | (402,683 | )         |    | $         | (161,565 | )
|                                       |                |                                                                                                           |                                |    |                                     |          |           |   
|Net loss per limited partnership unit: |                |                                                                                                           |                                |    |                                     |          |           |   
|                                      
|                                      
|                                      
|                                      
|                                       | (49,656 units) |                                                                                                           | $                              | (8 | )                                   |          | $         | (3 | )        
|                                       |                |                                                                                                           |                                |    |                                     |          |           |   
|Net loss per $1,000 investment         |                | $                                                                                                         | (16                            | )  |                                     | $        | (7        | ) 
|                                       |                |                                                                                                           |                                |    |                                     |          |           |   

The accompanying notes are an integral part of these statements.

3



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##### Table of Contents









NORTHLAND CABLE PROPERTIES SEVEN LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
(Prepared by the Managing General Partner)

|                                                                              |                                              |                                                  |            |                                   |          |      |            |           |          |  
|----------------------------------------------------------------------------- | -------------------------------------------- | ------------------------------------------------ | ---------- | --------------------------------- | -------- | ---- | ---------- | --------- | -------- | -
|                                                                              |                                              |                                                  |            | For the six months ended June 30,
|                                                                              |                                              |                                                  |            |                                  
|                                                                              |                                              |                                                  |            | 2001                              |          | 2000
|                                                                              |                                              |                                                  |            |                                   |          |     
|                                                                              |                                              |                                                  |            | (unaudited)                      
|CASH FLOWS FROM OPERATING ACTIVITIES:                                         |                                              |                                                  |            |                                   |          |      |            |          
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|Net income                                                                    |                                              | $                                                | (890,310   | )                                 |          | $    | (360,786   | )        
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|Adjustments to reconcile net income to
cash provided by operating activities: |                                              |                                                  |            |                                   |          |      |            |          
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                              | Depreciation and amortization                |                                                  |            | 2,514,768                         |          |      |            | 2,287,890 |         
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                              | Interest rate derivative                     |                                                  |            | 274,249                           |          |      |            |          |         
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                              | Loan fee amortization                        |                                                  |            | 58,957                            |          |      |            | 75,835    |         
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                              | Loss on sale of assets                       |                                                  |            | 54,506                            |          |      |            | 2,755     |         
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                              | (Increase) decrease in operating assets:     |                                                  |            |                                   |          |      |            |           |         
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                              |                                              | Accounts receivable                              |            |                                   | 31,939   |      |            |           | 29,970   |  
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                              |                                              | Due from managing general partner and affiliates |            |                                   | (38,706  | )    |            |           |         |  
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                              |                                              | Prepaid expenses                                 |            |                                   | (37,178  | )    |            |           | (70,091  | )
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                              | Increase (decrease) in operating liabilities
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                              |                                              | Accounts payable and accrued expenses            |            |                                   | (874,085 | )    |            |           | (286,277 | )
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                              |                                              | Due to managing general partner and affiliates   |            |                                   | (38,993  | )    |            |           | 84,504   |  
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                              |                                              | Converter deposits                               |            |                                   | 8,015    |      |            |           | 2,920    |  
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                              |                                              | Subscriber prepayments                           |            |                                   | (3,880   | )    |            |           | 52,961   |  
|                                                                              |                                              |                                                  |            |                                   |          |      |            |          
|Net cash (used in) from operating activities                                  |                                              |                                                  | 1,059,282  |                                   |          |      | 1,819,681  |          
|                                                                              |                                              |                                                  |            |                                   |          |      |            |          
|CASH FLOWS FROM INVESTING ACTIVITIES:                                         |                                              |                                                  |            |                                   |          |      |            |          
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|Purchase of property and equipment, net                                       |                                              |                                                  | (2,968,937 | )                                 |          |      | (1,036,371 | )        
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|Proceeds from sale of assets                                                  |                                              |                                                  |           |                                   |          |      | 19,053     |          
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|Increase in intangibles                                                       |                                              |                                                  | (124,577   | )                                 |          |      |           |          
|                                                                              |                                              |                                                  |            |                                   |          |      |            |          
|Net cash used in investing activities                                         |                                              |                                                  | (3,093,514 | )                                 |          |      | (1,017,318 | )        
|                                                                              |                                              |                                                  |            |                                   |          |      |            |          
|CASH FLOWS FROM FINANCING ACTIVITIES:                                         |                                              |                                                  |            |                                   |          |      |            |          
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|Principal payments on borrowings                                              |                                              |                                                  | (1,639,579 | )                                 |          |      | (1,013,414 | )        
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|Proceeds from borrowings                                                      |                                              |                                                  | 3,750,000  |                                   |          |      |           |          
|                                                                              |                                              |                                                  |            |                                   |          |      |            |          
|Net cash from (used in) financing activities                                  |                                              |                                                  | 2,110,421  |                                   |          |      | (1,013,414 | )        
|                                                                              |                                              |                                                  |            |                                   |          |      |            |          
|INCREASE (DECREASE) IN CASH                                                   |                                              |                                                  | 76,189     |                                   |          |      | (211,051   | )        
|                                                                             
|CASH, beginning of period                                                     |                                              |                                                  | 492,858    |                                   |          |      | 534,003    |          
|                                                                              |                                              |                                                  |            |                                   |          |      |            |          
|CASH, end of period                                                           |                                              | $                                                | 569,047    |                                   |          | $    | 322,952    |          
|                                                                              |                                              |                                                  |            |                                   |          |      |            |          
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                             |                                              |                                                  |            |                                   |          |      |            |          
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                              | Cash paid during the period for interest     |                                                  | $          | 1,690,224                         |          |      | $          | 1,671,704 |         
|                                                                              |                                              |                                                  |            |                                   |          |      |            |          

The accompanying notes are an integral part of these statements.

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NORTHLAND CABLE PROPERTIES SEVEN LIMITED PARTNERSHIP




NOTE TO UNAUDITED FINANCIAL STATEMENTS

(1)  These unaudited financial statements are being filed in conformity with
Rule 10-01 of Regulation S-X regarding interim financial statement disclosure
and do not contain all of the necessary footnote disclosures required for a
fair presentation of the balance sheets, statements of operations and
statements of cash flows in conformity with generally accepted accounting
principles. However, in the opinion of management, this data includes all
adjustments, consisting only of normal recurring accruals, necessary to present
fairly the Partnerships financial position at June 30, 2001 and December 31,
2000, its statements of operations for the six and three months ended June 30,
2001 and 2000, and its statement of cash flows for the six and three months
ended June 30, 2001 and 2000. Results of operations for these periods are not
necessarily indicative of results to be expected for the full year. These
financial statements and notes should be read in conjunction with the
Partnerships Annual Report on Form 10-K for the year ended December 31, 2000.

(2) Recently Issued Accounting Pronouncements

Statement of Financial Accounting Standards (SFAS) No. 133  In June 1998, the
Financial Accounting Standards Board issued SFAS No. 133, Accounting for
Derivative Instruments and Hedging Activities (SFAS No. 133) and in June 2000
issued SFAS No. 138, amendment of SFAS No. 133. These statements establish
accounting and reporting standards requiring that every derivative instrument
(including certain derivative instruments embedded in other contracts) be
recorded on the balance sheet as either an asset or liability measured at its
fair value. These statements require that changes in the derivatives fair
value be recognized currently in earnings unless specific hedge accounting
criteria are met.

Pursuant to SFAS No. 137, Accounting for Derivative Instruments and Hedging
Activities  Deferral of the Effective Date of FASB No. 133  an Amendment to
FASB Statement No. 133, the effective date of SFAS No. 133 has been deferred
until fiscal years beginning after January 15, 2000. SFAS No. 133 cannot be
applied retroactively. SFAS No. 133 must be applied to (a) derivative
instruments and (b) certain derivative instruments embedded in hybrid contracts
that were issued, acquired, or substantively modified after December 31, 1998
(and, at the companys election, before January 1, 1999).

The Partnership has elected not to designate its derivatives as hedges under
SFAS No. 133. Accordingly, the Partnership has recorded a liability equal to
the fair value to settle the agreements and a corresponding debit in its
statement of operations. Each quarter, the change in the market value of the
Partnerships derivatives will be recorded as other income or expense.

In June 2001 the Financial Accounting Standards Board approved Statement
of Financial Accounting Standard (SFAS) No. 141, Business
Combinations, and SFAS No. 142, Goodwill and Other Intangible
Assets. SFAS No. 141 prospectively prohibits the pooling of interest
method of accounting for business combinations initiated after June 30, 2001.
The authorization of existing goodwill will cease on December 31, 2001. Any
goodwill resulting from acquisitions completed after June 30, 2001 will not
be amortized. SFAS No. 142 also establishes a new method of testing goodwill
for impairment on an annual basis or on an interim basis if an event occurs or
circumstances change that would more likely than not reduce the fair value of a
reporting unit below its carrying value . The adoption of SFAS No. 142 will
result in the Partnerships discontinuation of amortization of its goodwill;
however, the Partnership will be required to test its goodwill for impairment
under the new standard beginning in the first quarter of 2002, which could have
an adverse effect on the Partnerships future results of operations if an
impairment occurs. The Partnership is in the process of evaluating the financial
statement impact of adoption of SFAS No. 142.

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PART I (continued)







ITEM 2. Managements Discussion and Analysis of Financial Condition and
Results of Operations

Six Months Ended June 30, 2001 and 2000

Revenues totaled $9,279,104 for the six months ended June 30, 2001 representing
an increase of approximately 3% over the same period in 2000. Of these
revenues, $6,355,362 (69%) was derived from basic services, $695,038 (8%) from
premium services, $968,262 (10%) from expanded basic services, $198,794 (2%)
from service maintenance contracts, $562,916 (6%) from advertising and $498,732
(5%) from other sources. This increase is attributable to rate increases put
into effect during the first quarter of 2001.

As of June 30, 2001 the Partnerships systems served approximately 36,080 basic
subscribers and 16,470 premium subscribers.

Operating expenses, which include costs related to technical personnel, repairs
and maintenance, totaled $769,587 for the six months ended June 30, 2001,
representing an increase of approximately 2% over the same period in 2000.
This is primarily due to increases in pole, duct and site rental as well as
increases in salaries as the result of additional staff and annual cost of
living adjustments.

General and administrative expenses totaled $2,229,923 for the six months ended
June 30, 2001, representing an increase of approximately 6% over the same
period in 2000. The increase is primarily attributable to (i) increases in
salary and benefit costs due to annual cost of living adjustments as well as
additional staff, (ii) increased bad debt expense and (iii) increased
professional fees, such as accounting services.

Programming expenses totaled $2,631,069 for the six months ended June 30, 2001,
representing an increase of approximately 6% over the same period in 2000. The
increase is primarily attributable to higher costs charged by various program
suppliers as well as costs incurred as the result of offering additional
channels in some of the Partnerships systems.

Depreciation and amortization expense for the six months ended June 30, 2001
increased approximately 10% over the same period in 2000. Such increase is
attributable to depreciation of recent purchases related to upgrading plant and
equipment. Increases in depreciation expense are offset by certain assets
becoming fully depreciated.

Interest expense for the six months ended June 30, 2001 remained consistent
with the same period in 2000. The Partnerships average bank debt outstanding
increased from $39,437,014 during the first half of 2000 to $41,071,554 during
the first half of 2001. The Partnerships effective interest rate decreased
from 8.45% in 2000 to 7.83% in 2001.

The Partnership has elected not to designate its derivatives as hedges under
SFAS No. 133. Accordingly, the Partnership has recorded a liability equal to
the fair value to settle the

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agreements and a corresponding debit in its
statement of operations. Each quarter, the change in the market value of the
Partnerships derivatives will be recorded as other income or expense.
The market value adjustment for the six months ended June 30, 2001 was a debit
of approximately $258,000.

Three Months Ended June 30, 2001 and 2000

Revenues totaled $4,725,047 for the three months ended June 30, 2001
representing an increase of approximately 4% over the same period in 2000. Of
these revenues, $3,195,148 (68%) was derived from basic services, $362,905 (8%)
from premium services, $513,722 (11%) from expanded basic services, $98,253
(2%) from service maintenance contracts, $299,684 (6%) from advertising and
$255,335 (5%) from other sources. The increase is attributable to rate
increases put into effect during the first quarter of 2001.

Operating expenses, which include costs related to technical personnel, repairs
and maintenance, totaled $389,741 for the three months ended June 30, 2001,
representing an increase of approximately 10% over the same period in 2000.
This is primarily due to increases in salary and benefit costs due to increased
staff as well as annual cost of living adjustments.

General and administrative expenses totaled $1,145,519 for the three months
ended June 30, 2001, representing an increase of approximately 7% over the same
period in 2000. This increase is primarily attributable to: (i) increases in
salary and benefit costs resulting from increased staff as well as annual cost
of living adjustments and (ii) increases in pole, duct and site rental costs.

Programming expenses totaled $1,321,560 for the three months ended June 30,
2001, representing an increase of approximately 6% over the same period in
2000. This increase is primarily attributable to higher costs charged by
various program suppliers as well as costs incurred as the result of offering
additional channels in some of the Partnerships systems.

Depreciation and amortization expense for the three months ended June 30, 2001
increased approximately 12% over the same period in 2000. Such increase is
attributable to depreciation of recent equipment purchases relating to plant
and equipment upgrades. Increases in depreciation expense are offset by
certain assets becoming fully depreciated.

Interest expense for the three months ended June 30, 2001 decreased
approximately 6% over the same period in 2000. The Partnerships average bank
debt outstanding increased from $39,183,695 during the second quarter of 2000
to $42,161,677 during the same period in 2001. Additional borrowings were used
to finance planned capital expenditures, including rebuilds of systems and new
digital service launches. The Partnerships effective interest rate decreased
from 8.44% in the second quarter of 2000 to 7.19% in the second quarter of
2001.

The Partnership has elected not to designate its derivatives as hedges under
SFAS No. 133. Accordingly, the Partnership has recorded a liability equal to
the fair value to settle the agreements and a corresponding debit in its
statement of operations. Each quarter, the change in the market value of the
Partnerships derivatives will be recorded as other income or expense. The
market value adjustment for the second quarter of 2001 was a debit of

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approximately $143,000.

Liquidity and Capital Resources

The Partnerships primary sources of liquidity are cash flow provided from
operations and borrowing capacity under the Partnerships existing revolving
credit facility. Based on managements analysis, the Partnerships cash flow
from operations and borrowings from the Partnerships revolving credit facility
will be sufficient to cover future operating costs, debt service and planned
capital expenditures.

Under the terms of the Partnerships loan agreement, the Partnership has agreed
to restrictive covenants which require the maintenance of certain ratios
including a maximum ratio of senior debt to annualized operating cash flow of
5.25 to 1.0 and a minimum ratio of annualized operating cash flow to pro forma
debt service of 1.0 to 1.0. As of June 30, 2001 the Partnership was in
compliance with its required financial covenants.

As of the date of this filing, the balance under the credit facility is
$41,825,000. Certain fixed rate agreements in place as of December 31, 2000
expired during the first quarter of 2001, and the Partnership entered into new
fixed rate agreements. As of the date of this filing, interest rates on the
credit facility were as follows: $20,350,000 fixed at 7.265% under the terms of
an interest rate swap agreement with the Partnerships lender expiring March
12, 2002; $17,687,500 fixed at 7.265% under the terms of a self amortizing
interest rate swap agreement with the Partnerships lender expiring March 29,
2002; $1,500,000 fixed at 7.265% under the terms of an interest rate swap
agreement with the Partnerships lender expiring March 29, 2002; $1,500,000 at
a LIBOR based rate of 7.0175% expiring October 4, 2001; $750,000 at a LIBOR
based rate of 6.085% expiring September 28, 2001; and the remaining $37,500 at
prime (currently 8.0%). The above rates include a margin paid to the lender
based on overall leverage, and may increase or decrease as the Partnerships
leverage fluctuates.

Capital Expenditures

During the first half of 2001, the Partnership
incurred approximately $3.0
million in capital expenditures, including the continuation of an upgrade of
the distribution plant to 550 MHz in the Brenham, Texas, Sequim, Washington,
Sandersville, Georgia, and Toccoa, Georgia systems; as well as various line
extensions and vehicle replacements in all of the systems.

Planned expenditures for the remainder of 2001 include continuation of
distribution plant upgrades, new digital service launches, line extensions,
analog channel additions, and vehicle replacements in various systems.

Quantitative and Qualitative Disclosures About Market Risk

The Partnership is subject to market risks arising from changes in interest
rates. The Partnerships primary interest rate exposure results from changes in
LIBOR or the prime rate which are used to determine the interest rate
applicable to the Partnerships debt facilities. As of the date of this
filing, the Partnership had entered into two interest rate swap agreements for

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$20,350,000 and $19,187,500 of these borrowings, to partially hedge interest
rate exposure. Interest rate swaps have the effect of converting the
applicable variable rate obligations to fixed or other variable rate
obligations. The potential loss over one year that would result from a
hypothetical, instantaneous and unfavorable change of 100 basis points in the
interest rate of all the Partnerships variable rate obligations would be approximately $395,000.

The Partnership does not use financial instruments for trading or other
speculative purposes.

Cautionary statement for purposes of the Safe Harbor provisions of the
Private Litigation Reform Act of 1995. Statements contained or incorporated by
reference in this document that are not based on historical fact are
forward-looking statements within the meaning of the Private Securities
Reform Act of 1995. Forward-looking statements may be identified by use of
forward-looking terminology such as believe, intends, may, will,
expect, estimate, anticipate, continue, or similar terms, variations of
those terms or the negative of those terms.







PART II  OTHER INFORMATION







ITEM 1 Legal proceedings

None







ITEM 2 Changes in securities

None







ITEM 3 Defaults upon senior securities

None







ITEM 4 Submission of matters to a vote of security holders

None







ITEM 5 Other information

None







ITEM 6 Exhibits and Reports on Form 8-K

(a)  No reports on Form 8-K have been filed during the quarter ended June 30,
2001.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

NORTHLAND CABLE PROPERTIES SEVEN LIMITED PARTNERSHIP

|    |  |                                                               
|--- |  | --------------------------------------------------------------
|BY: |  | Northland Communications Corporation,
Managing General Partner

|                 |                                                       |                     
|---------------- | ----------------------------------------------------- | --------------------
|                 |                                                      
|                
|Dated:   8/13/01 | BY:                                                   | /s/ RICHARD I. CLARK
|                 |                                                      
|                 | Richard I. Clark
(Executive Vice President/Treasurer)

|                 |                           |                  
|---------------- | ------------------------- | -----------------
|                 |                          
|                
|Dated:   8/13/01 | BY:                       | /s/ GARY S. JONES
|                 |                          
|                 | Gary S. Jones
(President)

10