<PAGE> 1
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarterly period ended September 30, 1997
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from ____________ to _____________
Commission file number 0-28764
(Exact name of small business issuer as
specified in its charter)
PERFORMANCE ASSET MANAGEMENT FUND III, LTD., A CALIFORNIA LIMITED PARTNERSHIP
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
CALIFORNIA 33-0526128
(Address of principal executive offices)
4100 NEWPORT PLACE, SUITE 400, NEWPORT BEACH, CALIFORNIA
(Issuer's telephone number)
(714) 261-2400
(Former name, former address and former fiscal year, if changed
since last report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such report(s), and (2)
has been subject to such filing requirements for the past 90 days.
Yes [X] No [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to
be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by court. Yes [ ] No [ ].
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: N/A
Transitional Small Business Disclosure Format (check one):
Yes [ ] No [X]
<PAGE> 2
PERFORMANCE ASSET MANAGEMENT FUND III, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
INDEX TO FORM 10-QSB
PART I
Item 1. Financial Statements 3
Item 2. Management's Discussion and Analysis or Plan of Operation 10
PART II
Item 1. Legal Proceedings 14
Item 2. Exhibits and Reports 15
Signatures 15
2
<PAGE> 3
PERFORMANCE ASSET MANAGEMENT FUND III, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
PART I
ITEM 1. FINANCIAL STATEMENTS
Index to the Financial Statements for the Partnership:
Balance Sheets, September 30, 1997 and December 31, 1996.......................4
Statements of Operations, For the Three and Nine Months Ended September 30,
1997 and September 30, 1996....................................................5
Statements of Partnership Capital, For the Nine Months Ended
September 30, 1997 and Year Ended December 31, 1996............................6
Statements of Cash Flows, For the Nine Months Ended September 30,
1997 and September 30, 1996....................................................7
Notes to Financial Statements..................................................8
The financial statements have been prepared by Performance Asset Management Fund
III, Ltd., A California Limited Partnership ("Partnership"), without audit,
pursuant to the rules and regulations of the Securities and Exchange Commission.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to such rules and regulations. The
Partnership believes that the disclosures are adequate to make the information
presented not misleading when read in conjunction with the Partnership's
financial statements for the year ended December 31, 1996. The financial
information presented reflects all adjustments, consisting only of normal
recurring adjustments, which are, in the opinion of management, necessary for a
fair statement of the results for the interim periods presented.
3
<PAGE> 4
PERFORMANCE ASSET MANAGEMENT FUND III, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
BALANCE SHEETS
SEPTEMBER 30, 1997 AND DECEMBER 31, 1996
(UNAUDITED)
----------------
ASSETS
<TABLE>
<CAPTION>
1997 1996
---------- ----------
<S> <C> <C>
Cash and equivalents $ 919,419 $ 775,755
Cash held in trust 2,115,824 2,656,338
Investments in distressed loan portfolios, net 1,865,361 2,566,546
Due from affiliate 13,463 56,039
Other assets 64,480 64,477
Organization costs, net 0 923
---------- ----------
Total assets $4,978,547 $6,120,078
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 4,500 $ 715
Due to affiliates, net 290,344 492,800
---------- ----------
Total liabilities 294,844 493,515
---------- ----------
Commitments and contingencies
Partners' capital 4,683,703 5,626,563
---------- ----------
Total liabilities and partners' capital $4,978,547 $6,120,078
========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE> 5
PERFORMANCE ASSET MANAGEMENT FUND III, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE THREE FOR THE NINE
MONTHS ENDED SEPT 30 MONTHS ENDED SEPT 30
----------------------------- -----------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Portfolio collections $ 194,043 $ 33,651 $ 726,660 $4,493,483
Less: portfolio basis recovery 194,043 33,651 726,660 3,572,565
---------- ---------- ---------- ----------
Net investment income -- -- -- 920,918
---------- ---------- ---------- ----------
Cost of operations:
Collection expense 8,615 15,039 37,890 51,810
Management fee expense 11,974 6,541 40,875 38,794
Professional fees 6,801 64,774 78,559 137,671
Amortization 290 289 923 867
General and administrative expense 667 1,930 7,155 5,363
---------- ---------- ---------- ----------
Total operating expenses 28,347 88,573 165,402 234,505
---------- ---------- ---------- ----------
Income (loss) from operations (28,347) (88,573) (165,402) 686,413
Other income:
Interest 36,054 42,159 111,658 79,728
Other income -- -- 84 --
---------- ---------- ---------- ----------
Net income (loss) $ 7,707 ($ 46,414) ($ 53,660) $ 766,141
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE> 6
PERFORMANCE ASSET MANAGEMENT FUND III, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
STATEMENTS OF PARTNERS' CAPITAL (DEFICIT) FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 1997 AND YEAR ENDED DECEMBER 31, 1996
(UNAUDITED)
----------------
<TABLE>
<CAPTION>
General Limited
Partner Partners Total
----------- ----------- -----------
<S> <C> <C> <C>
Balance, December 31, 1995 ($ 322,499) $ 5,597,599 $ 5,275,100
Distributions (35,775) (295,925) (331,700)
Net income 68,315 614,848 683,163
----------- ----------- -----------
Balance, December 31, 1996 (289,959) 5,916,522 5,626,563
Distributions (88,800) (800,400) (889,200)
Net income (5,366) (48,294) (53,660)
=========== =========== ===========
Balance, September 30, 1997 ($ 384,125) $ 5,067,828 $ 4,683,703
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE> 7
PERFORMANCE ASSET MANAGEMENT FUND III, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(UNAUDITED)
--------------
<TABLE>
<CAPTION>
1997 1996
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) ($ 53,660) $ 766,141
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Amortization 923 867
Decrease (increase) in assets:
Other assets (3) 165,815
Due from affiliates 42,576 --
Increase (decrease) in liabilities:
Accounts payable 3,785 (2,523)
Due to affiliates (202,456) 57,898
----------- -----------
Net cash provided by (used in)
operating activities (208,835) 988,198
----------- -----------
Cash flows provided by (used in) investing activities:
Recovery of portfolio basis 726,660 3,572,565
Receivable from West Capital -- 927,540
Cash held in trust 540,514 (1,951,561)
Purchase of investments in distressed loan portfolios (25,475) (1,438,295)
----------- -----------
Net cash provided by investing activities 1,241,699 1,110,249
----------- -----------
Cash flows provided by (used in) financing activities:
Distributions to partners (889,200) --
----------- -----------
Net cash used in financing activities (889,200) 0
----------- -----------
Net (decrease) increase in cash 143,664 2,098,447
Cash at beginning of period 775,755 210,140
----------- -----------
Cash at end of period $ 919,419 $ 2,308,587
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE> 8
PERFORMANCE ASSET MANAGEMENT FUND III, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
1. Organization and Description of Business
Performance Asset Management Fund III, Ltd., A California Limited
Partnership ("Partnership"), was formed in September 1992, for the
purpose of acquiring distressed loan portfolios from financial
institutions and other sources. Interests in the Partnership were sold
in a private placement offering pursuant to Regulation D promulgated by
the Securities and Exchange Commission on a "best efforts" basis;
however, the Partnership did not begin its primary operations until
October 1992. The General Partner of the Partnership is Performance
Development, Inc., a California corporation ("General Partner").
Profits, losses, and cash distributions are allocated 90% to the limited
partners and 10% to the General Partner until such time as the limited
partners have been returned 100% of their initial capital contributions
to the Partnership. Thereafter, Partnership profits, losses and cash
distributions are allocated 70% to the limited partners and 30% to the
General Partner.
Cash and Equivalents
The Partnership defines cash equivalents as all highly liquid
investments with a maturity of three months or less when purchased. The
Partnership maintains its cash balances at one bank in accounts which,
at times, may exceed federally insured limits. The Partnership uses a
cash management system whereby idle cash balances are swept daily into a
master account and invested in high quality, short-term securities. The
General Partner believes that these cash balances are not subject to any
significant credit risk due to the nature of the investments and the
fact that the Partnership has not experienced any past losses with cash
and equivalent investments.
8
<PAGE> 9
Cash Held in Trust
The General Partner anticipates that the Partnership and the other
similar California limited Partnerships for which the General Partner
serves as general partner ("PAM Funds") may, in the future, be
reorganized and merged with and into one corporation. In an effort to
accomplish that reorganization and merger on terms and conditions
consistent with the intent of the General Partner, on December 12, 1995,
the General Partner, on behalf of the Partnership and the PAM Funds, and
the State of California Department of Corporations entered into an
agreement pursuant to the provisions of which the Performance Asset
Management Fund Trust ("Trust") was created. These funds are subject to
the terms of the Trust's agreement. The Trust was the recipient of a
portion of the funds resulting from a settlement of certain litigation
between the Partnership and its affiliates and West Capital Financial
Services Corp. ("WCFSC") and its affiliates.
Investments in Distressed Loan Portfolios and Revenue Recognition
Investments in distressed loan portfolios are carried at the lower of
cost, market, or estimated net realizable value. Amounts collected are
treated as a reduction to the carrying basis of the related investment
on an individual portfolio basis. Accordingly, income is not recognized
until 100% recovery of the original cost of the investment in each
portfolio occurs. Estimated net realizable value represents management's
estimates, based on its present plans and intentions, of the present
value of future collections. Due to the distressed nature of these
investments, no interest is earned on outstanding balances, and there is
no assurance that the unpaid principal balances will ultimately be
collected. Any adjustments to the carrying value of the individual
portfolios are recorded in the results of operations.
Organization Costs, Net
Organization costs include legal and other professional fees incurred
which are related to the organization of the Partnership. These costs
are capitalized and amortized using the straight-line method over five
years. Accumulated amortization at September 30, 1997 and December 31,
1996 totaled $5,786 and $4,863, respectively.
Income Taxes
No provision for income taxes has been made in the financial statements,
except for the Partnership's minimum state franchise tax liability of
$800. All partners are taxed individually on their share of the
Partnership's earnings and losses.
9
<PAGE> 10
Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenue and expenses
during the reported period. Actual results could differ from the
estimate.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
DISCLOSURE REGARDING: FORWARD LOOKING STATEMENTS
The information contained in this report on Form 10-QSB, other than
historical facts, contains "forward-looking statements" (as such term is
defined within the meaning of the Private Securities Litigation Reform
Act of 1995) including, without limitation, statements as to the
Partnership's objective to grow through future portfolio acquisitions
and portfolio account sales, the Partnership's ability to realize
operating efficiencies in the integration of its acquisitions, trends in
the Partnership's future operating performance, and statements as to the
Partnership's or the General Partner's, expectations and opinions.
Forward looking statements may be identified by the use of forward
looking terminology, such as "may", "will", "expect", "estimate",
"anticipate", "probable", "possible", "should", "could", "continue", or
similar terms, variations of those terms or the negative of those terms.
Forward-looking statements are subject to risks and uncertainties and
may be affected by various factors which may cause actual results to
differ materially from those in the forward-looking statements. In
addition to the factors discussed in this report, certain risks,
uncertainties and other factors, including, without limitation, the risk
that the Partnership will not be able to realize operating efficiencies
in the integration of its acquisitions, risks associated with growth and
future acquisitions, fluctuations in quarterly operating results, and
the other risks detailed from time to time in the Partnership's filings
with the Securities and Exchange Commission, including the Partnership's
Annual Report on Form 10-KSB, dated on March 31, 1997, can cause actual
results and developments to be materially different from those expressed
or implied by such forward-looking statements
10
<PAGE> 11
RESULTS OF OPERATIONS.
The Partnership did not record net investment revenue for the nine
months ended September 30, 1997, compared to $920,918 for the similar
period in 1996. The decrease resulted from an 84% reduction in portfolio
collections for the nine months ended September 30, 1997 to $726,660,
from $4,493,483 for the comparable period ended 1996. This decrease in
collections was due primarily to the receipt of proceeds resulting from
a settlement agreement with WCFSC in 1996. The settlement agreement
terminated all servicing relations with WCFSC and assigned and
transferred certain distressed loan portfolios to WCFSC in exchange for
the payment of certain funds owed the Partnership and affiliated
entities. As a result of the settlement agreement, the Partnership
recorded revenue of $920,918 from twelve portfolios, most of which
recovered 100% of its investment bases during the first half of 1996.
All collections received for the nine months ended 1997 were reflected
as portfolio recoveries and, accordingly, no investment revenue was
recorded for this period. In comparison, approximately 21% of portfolio
collections received for the similar period in 1996 were reflected as
revenue.
The Partnership acquired one portfolio during the third quarter of 1997,
which offset the reduction of net assets as a result of portfolio
collections recognized as portfolio bases reduction. Portfolio
collections proceeds on the newly acquired portfolio and the existing
four portfolios were $726,660 for the nine months ended September 1997,
reducing the book value of total investments in distressed loan
portfolios 27% to $1,865,361, as of September 30, 1997, from $2,566,546
at December 31, 1996. Collections for the months ended July 31, August
31, and September 30 totaled $73,745, $66,617, and $53,681,
respectively.
The Partnership received proceeds from portfolio sales of $2,709, which
were recorded as recoveries of investment bases and reflected in
portfolio collections for the three months ended September 30 1997. No
such proceeds were received for the comparable period ended September
30, 1996. The Partnership's management continues to believe that
proceeds from both collection proceeds and portfolio account sales will
increase in subsequent periods and estimates that proceeds from
portfolio sales accounts should exceed those amounts recorded in the
fiscal year ended 1996.
Total operating expenses decreased 29% to $165,402 for the nine months
ended September 30, 1997, from $234,505 for the comparable period in
1996. Collection expenses decreased 27% to $37,890 from $51,810 due to a
reduction in purchases of new portfolio acquisitions which directly
impacts the costs associated with the identification of Partnership
debtors for the nine months ended September 30, 1997, compared to the
same period ended 1996. The Partnership also realized a reduction in
professional fees by 43% to $78,559 for the nine months ended September
30, 1997, attributed to the reduction in legal fees associated with the
settlement agreement with WCFSC for the comparable period ended
September 30, 1996. Operating expenses as a percentage of portfolio
collections totaled approximately 23% as compared to 5% for the
comparable period in 1996. The increase is due primarily from the
proceeds received from the settlement agreement with WCFSC in 1996.
11
<PAGE> 12
Total operating expenses decreased 68% to $28,347 for the third quarter
of 1997, compared to $88,573 for the comparable period in 1996. The
decrease is primarily attributed to a reduction of 91% in professional
fees, caused by a decrease in legal fees associated with the settlement
agreement with WCFSC. Collection expenses decreased 43% to $8,615 for
the three months ended September 30, 1997, compared to $15,039 for the
three months ended September 30, 1996. This decrease is attributed to
the reduction of new portfolio purchases for the three months ended
September 30, 1997. Management fees increased 83% for the quarter ended
September 30, 1997 to $11,974 from $6,541 for the comparable period in
1996. This was attributed to the addition in net assets under management
caused by the purchase of new investments in distressed loan portfolios.
The decrease in professional fees of 90% during the third quarter of
1997 to $6,801, from $64,774 for the comparable quarter of 1996 was
primarily due to the reduction of legal fees also associated with the
settlement agreement in 1996.
Total operating expenses as a percentage of portfolio collections
increased 18% to 23% for the nine months ended September 30, 1997, from
5% in the comparable period in 1996. This increase is attributed to
collection proceeds received from the settlement agreement during the
second quarter of 1996. Comparatively, operating expenses as a
percentage of portfolio collections decreased 248%, to 15% for the three
months ended September 30, 1997, compared to 263% for the same period
ended September 30, 1996. This decrease is due to the increase in
portfolio collections for the third quarter of 1997 as compared to the
same period in 1996 and the reduction of professional fees related to
the settlement agreement with WCFSC for 1996.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES.
The Partnership's total assets decreased approximately 19% to $4,978,547
as of September 30, 1997, from $6,120,078 at December 31, 1996. The
decrease was primarily attributed to portfolio proceeds of $726,660 of
which 100% were recorded as reduction of investment portfolio assets.
The decrease in due from affiliates of 76% to $13,463 from $56,039 was
primarily the result of the receipt of prior period portfolio
collections and portfolio sales.
The decrease in due to affiliates during the third quarter of 1997 was
due primarily to the payment of collection expenses, management fees,
and declared distributions to the General Partner.
The Partnership acquired one new distressed portfolio asset during the
three months ended September 30, 1997 from a third party financial
institution specializing in credit card origination. The General Partner
anticipates that the Partnership will acquire additional portfolios in
the near future. Future acquisitions will depend on the asset market,
which continues to grow in size and diversity. The Partnership continues
to believe it will acquire low-end-priced distressed portfolios;
however, the General Partner will continue to evaluate assets with
different pricing and debtor account structure in order to determine
whether such portfolios can generate strong immediate cash flows and
provide additional liquidity to the Partnership.
12
<PAGE> 13
The Partnership has made no future commitments with credit card
originators and other financial institutions to acquire portfolio
assets. The General Partner plans to use its present contacts and
relationships to identify and acquire additional assets at optimal
prices, and believes that it will have no difficulties in identifying
and acquiring such assets. The General Partner suspended distributions
in the third quarter of 1997 in anticipation of the reorganization of
the Partnership with other affiliated partnerships and Performance
Capital Management, Inc., a California corporation and an affiliate of
the General Partner ("PCM"). Management also believes current cash
reserves and future portfolio collection proceeds will be sufficient to
acquire anticipated portfolio assets in the next twelve months.
IMPACT OF ADDITIONAL PARTNERSHIP ACQUISITIONS AND RESOURCES ON
OPERATIONS.
The General Partner anticipates that additional future portfolio
acquisitions and continued expansion will improve the Partnership's
liquidity, profitability and financial condition, which will result from
increased portfolio collections and sales. The General Partner continues
to believe that PCM, which serves as the servicer of the Partnership's
portfolios of indebtedness, must continue to increase the amount of its
collection representatives and human resources in order to supplement
such growth to the Partnership. The General Partner, in conjunction with
PCM and other affiliated companies and partnerships is seeking office
space in which PCM and the Partnership plan to move their facilities.
The General Partner believes that this move provides the Partnership
with the adequate operating facilities for the future growth of the
Partnership.
The General Partner, on behalf of the Partnership, has filed the
necessary documents, dated November 4, 1997, with the Securities and
Exchange Commission to merge the Partnership, other affiliated
Partnerships ("Affiliated Partnerships"), and PCM with Performance Asset
Management Company, a Delaware corporation ("Company"), whereby the
Company shall acquire, by merger, all of the assets of PCM, the assets
of the Partnership and the assets of the Affiliated Partnerships. The
proposed merger transaction contemplates that the Partnership and the
Affiliated Partnerships shall receive shares of common stock of the
Company in exchange for the assets. The Partnership shall cease to exist
by operation of law upon completion of their winding up and dissolution.
On the winding up and dissolution of the partnership and the Affiliated
Partnerships, these shares of that common stock shall be distributed to
the non dissenting limited partners in exchange for their units.
Additionally, the shares of common stock of the Company that are
received shall be registered for trading or other resale transactions.
13
<PAGE> 14
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
Reference is made to the Partnership's Form 10-KSB dated March 31, 1997,
in which such legal proceedings were reported in Part I, Item 3, "Legal
Proceedings". The Partnership, by this reference, makes that disclosure
a part of this Form 10-QSB.
On or about October 31, 1997, SunAmerica, Inc., a Maryland corporation;
SunAmerica Life Insurance Company, an Arizona corporation; WCFSC; and
WCFSC Special Purpose Corporation, a California corporation, as
Plaintiffs, filed a Complaint in United States District Court for the
Central District of California alleging (i) violations of Section 10(b)
of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
pursuant thereto; (ii) fraud and deceit, and (iii) gross negligence.
Specified in that Complaint as Defendants are Vincent E. Galewick,
President of the General Partner; the Partnership; the Affiliated
Partnerships; and the General Partner ("Performance Defendants"). That
Complaint, in essence, alleges that Michael A. Joplin, the then
President of WCFSC, engaged in wrongful, deceptive and fraudulent
conduct in connection with the purchase and sale of certain securities.
Additionally, that Complaint alleges that the Performance Defendants
participated in that conduct.
None of the Performance Defendants participated, either directly or
indirectly, in any wrongful, deceptive and fraudulent conduct in
connection with the purchase and sale of those securities.
As part of their settlement of various disputes with WCFSC, the
Performance Defendants entered into a thorough and comprehensive Mutual
General Release ("Release"). Pursuant to the provisions of the Release,
WCFSC, for itself and its shareholders, officers, directors, affiliates,
agents, successors, and assigns, forever and unequivocally released,
acquitted and discharged the Performance Defendants and their officers,
directors, employees, shareholders, partnerships, affiliates, agents,
successors, and assigns. Therefore, it is the opinion of counsel for the
Performance Defendants that the Performance Defendants have been
completely and unconditionally released from any liability resulting
from their relationships and transactions with WCFSC.
The Performance Defendants deny each and every allegation in that
litigation matter and shall defend that litigation matter vigorously. It
is the opinion of counsel for the Performance Defendants that any
resolution of that litigation matter should be resolved favorably for
the Performance Defendants and, therefore, the resolution of that
litigation matter should not (i) affect the ability of the General
Partner to function as the General Partner and manage operations of the
Partnership or (ii) materially and adversely affect the General Partner,
the Partnership or the Affiliated Partnerships.
14
<PAGE> 15
ITEM 2. EXHIBITS AND REPORTS.
(a) Exhibits
Exhibit Number Exhibit
1 Certificate of Limited Partnership Form LP-1 (Charter
Document) *
2 Agreement of Limited Partnership (Instrument defining
the rights of Security Holders) **
27 Financial Data Schedule
* Reference is made to the Partnership's Form 10-KSB, dated March
31, 1997, in which that Certificate of Limited Partnership was included
as an exhibit. The Partnership, by this reference, makes that
Certificate of Limited Partnership a part of this Form 10-QSB.
** Reference is made to the Partnership's Form 10-KSB, dated March
31, 1997, in which that Agreement of Limited Partnership was included as
an exhibit. The Partnership, by this reference, makes that Agreement of
Limited Partnership a part of this Form 10-QSB.
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the
Partnership caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Dated: November 13, 1997 Performance Asset Management Fund III, Ltd.,
A California Limited Partnership
(Registrant)
By: /s/ VINCENT E. GALEWICK
---------------------------------
Vincent E. Galewick
President of the General Partner,
Performance Development, Inc.
15
<PAGE> 16
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Description
- ----------- -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BALANCE
SHEET AS OF SEPTEMBER 30, 1997 AND THE STATEMENT OF OPERATIONS FOR THE QUARTER
ENDING SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
10QS FOR THE QUARTER ENDING SEPTEMBER 30, 1997
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 3,035,243
<SECURITIES> 0
<RECEIVABLES> 77,943
<ALLOWANCES> 0
<INVENTORY> 1,865,361
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 4,978,547
<CURRENT-LIABILITIES> 294,844
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 4,683,703
<TOTAL-LIABILITY-AND-EQUITY> 4,978,547
<SALES> 0
<TOTAL-REVENUES> 230,097
<CGS> 194,043
<TOTAL-COSTS> 194,043
<OTHER-EXPENSES> 28,347
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 7,707
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,707
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
