FORM 10-QSB.--QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Quarterly or Transitional Report
(As last amended by 34-32231, eff. 6/3/93.)
U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period.........to.........
Commission file number 0-8851
ANGELES PARTNERS VII
(Exact name of small business issuer as specified in its charter)
California 95-3215214
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
One Insignia Financial Plaza, P.O. Box 1089
Greenville, South Carolina 29602
(Address of principal executive offices) (Zip Code)
Issuer's telephone number (803) 239-1000
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 reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes X No
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
a) ANGELES PARTNERS VII
BALANCE SHEET
(Unaudited)
<TABLE>
<CAPTION>
September 30, 1995
<S> <C> <C>
Assets
Cash:
Unrestricted $ 254,668
Restricted--tenant security deposits 32,595
Accounts receivable 3,874
Escrow for taxes 31,375
Restricted escrows
Other assets 3,749
Investment properties:
Land $ 366,000
Buildings and related personal property 5,118,272
5,484,272
Less accumulated depreciation (3,292,782) 2,191,490
$2,517,751
Liabilities and Partners' Deficit
Liabilities
Accounts payable $ 29,929
Tenant security deposits 32,745
Accrued taxes 31,050
Other liabilities 50,418
Notes payable 2,579,371
Partners' Deficit
General partner $ 282,985
Limited partners (8,669 units issued and
outstanding) (488,747) (205,762)
$2,517,751
</TABLE>
[FN]
See Accompanying Notes to Financial Statements
b) ANGELES PARTNERS VII
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 257,361 $ 238,292 $ 745,204 $ 704,897
Other income 11,013 16,630 40,346 77,120
Total revenues 268,374 254,922 785,550 782,017
Expenses:
Operating 63,058 67,893 216,168 220,024
General and administrative 22,196 20,200 73,392 55,927
Property management fees 13,308 12,530 38,863 36,598
Maintenance 36,033 43,549 127,900 136,881
Depreciation 61,789 55,114 176,129 159,208
Interest 59,205 61,278 179,211 185,288
Property taxes 10,350 10,350 31,050 38,517
Total expenses 265,939 270,914 842,713 832,443
Net income (loss) $ 2,435 $ (15,992) $ (57,163) $ (50,426)
Net income (loss) allocated to
general partners (1%) $ 24 $ (160) $ (572) $ (504)
Net income (loss) allocated to
limited partners (99%) 2,411 (15,832) (56,591) (49,922)
$ 2,435 $ (15,992) $ (57,163) $ (50,426)
Net income (loss) per limited
partnership unit $ 0.28 $ (1.83) $ (6.53) $ (5.76)
</TABLE>
[FN]
See Accompanying Notes to Financial Statements
c) ANGELES PARTNERS VII
STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
(Unaudited)
<TABLE>
<CAPTION>
Limited
Partnership General Limited
Units Partners Partners Total
<S> <C> <C> <C> <C>
Original capital contributions 8,674 $ 87,716 $ 8,674,000 $ 8,761,716
Partners' capital (deficit)
at December 31, 1994 8,669 $ 294,455 $ (343,074) $ (48,619)
Cash distributions for the nine
months ended September 30, 1995 -- (10,898) (89,082) (99,980)
Net loss for the nine months ended
September 30, 1995 -- (572) (56,591) (57,163)
Partners' capital (deficit) at
September 30, 1995 8,669 $ 282,985 $ (488,747) $ (205,762)
</TABLE>
[FN]
See Accompanying Notes to Financial Statements
d) ANGELES PARTNERS VII
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
1995 1994
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (57,163) $ (50,426)
Adjustments to reconcile net loss
to net cash provided by operating
activities:
Depreciation 176,129 159,208
Change in accounts:
Restricted cash (5,820) (14,055)
Accounts receivable 719 (2,295)
Escrows for taxes (27,783) (24,659)
Other assets -- (449)
Accounts payable 11,529 (27,939)
Tenant security deposit liabilities 3,955 5,030
Accrued taxes 31,050 32,124
Other liabilities 8,111 (1,893)
Net cash provided by operating
activities 140,727 74,646
Cash flows from investing activities:
Property improvements and replacements (169,702) (138,467)
Sale of short-term investments -- 508,178
Net cash (used in) provided by
investing activities (169,702) 369,711
Cash flows from financing activities:
Payments on mortgage notes payable (69,927) (63,850)
Cash distributions to partners (99,980) (2,336,474)
Net cash used in financing activities (169,907) (2,400,324)
Net decrease in cash (198,882) (1,955,967)
Cash at beginning of period 453,550 2,522,424
Cash at end of period $ 254,668 $ 566,457
Supplemental disclosure of cash flow information
Cash paid for interest $ 179,211 $ 185,288
</TABLE>
[FN]
See Accompanying Notes to Financial Statements
e) ANGELES PARTNERS VII
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 1 - Basis of Presentation
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-QSB and Item 310(b) of
Regulation S-B. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the nine month period ended September 30,
1995, are not necessarily indicative of the results that may be expected for the
fiscal year ending December 31, 1995. For further information, refer to the
financial statements and footnotes thereto included in the Partnership's annual
report on Form 10-KSB for the fiscal year ended December 31, 1994.
Certain reclassifications have been made to the 1994 information to conform
to the 1995 presentation.
Note 2 - Transactions with Affiliates
The Partnership has no employees and is dependent on the General Partner and
its affiliates for the management and administration of all Partnership
activities. The partnership agreement provides for payments to affiliates for
services and as reimbursement of certain expenses incurred by affiliates on
behalf of the Partnership.
The following payments were made to the General Partner and affiliates for
the nine months ended September 30, 1995 and 1994:
1995 1994
Property management fees $38,863 $36,598
Reimbursement for services of affiliates $43,971 $24,792
The Partnership insures its property under a master policy through an agency
and insurer unaffiliated with the General Partner. An affiliate of the General
Partner acquired, in the acquisition of a business, certain financial
obligations from an insurance agency which was later acquired by the agent who
placed the current year's master policy. The current agent assumed the
financial obligations of the affiliate of the General Partner, who receives
payments on these obligations from the agent. The amount of the Partnership's
insurance premiums accruing to the benefit of the affiliate of the General
Partner by virtue of the agent's obligations is not significant.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
The Partnership's investment property consists of one apartment complex. The
following table sets forth the average occupancy of the property for the nine
months ended September 30, 1995 and 1994:
Average
Occupancy
Property 1995 1994
Cedarwood Apartments
Gretna, Louisiana 95% 92%
The General Partner attributes the increase in occupancy at Cedarwood to
property improvements and new casino facilities being located on the Mississippi
River.
The General Partner is actively marketing this apartment complex for sale.
The Partnership's net loss for the nine months ended September 30, 1995, was
$57,163 which included net income of $2,435 for the three months ended September
30, 1995. The net losses for the corresponding periods of 1994 were $50,426 and
$15,992, respectively. The increase in net loss is primarily attributable to a
decrease in interest income due to the sale of short term investments during
1994. This decrease is offset by an increase in rental revenue as a result of
the increase in occupancy at Cedarwood Apartments. Also contributing to the
increase in net loss is an increase in the general and administrative expenses
related to reimbursements for partnership administration costs and General
Partner reimbursements. Depreciation expense increased for the three and nine
months ended September 30, 1995, as compared to the three and nine months ended
September 30, 1994, due to fixed asset additions during 1995. Partially
offsetting this increase is a decrease in property taxes due to additional tax
bills being received and paid in 1994 for 1993 taxes. Maintenance expense also
decreased due to decreases in maintenance materials, however, this decrease was
partially offset by an increase in exterior and interior building improvements
due to the property being on the market.
At September 30, 1995, the Partnership had unrestricted cash of $254,668
compared to $566,457 at September 30, 1994. Net cash provided by operating
activities increased primarily as a result of an increase in other liabilities
and an increase in accounts payable. Net cash used in investing activities
increased as a result of cash provided by the sale of short-term investments
during 1994. Net cash used in financing activities decreased due to decreased
distributions to partners made during the nine months ended September 30, 1995,
as compared to the corresponding period in 1994.
The sufficiency of existing liquid assets to meet future liquidity and
capital expenditure requirements is directly related to the level of capital
expenditures required at the property to adequately maintain the physical assets
as well as future maturing mortgage obligations and related refinancing
expenses. Such assets are currently thought to be sufficient for any short-term
needs of the Partnership. Future cash distributions will depend on the levels
of net cash generated from operations, refinancings, property sales and the
availability of cash reserves.
The General Partner continues to monitor the rental market environment at its
apartment property to assess the feasibility of increasing rents, to maintain or
increase the occupancy level and to protect the Partnership from increasing
expenses. The General Partner expects to be able, at a minimum, to continue to
protect the Partnership from the burden of inflation-related increases in
expenses by increasing rents and maintaining a high overall occupancy level.
However, rental reductions needed to offset softening market conditions could
affect the ability to sustain this plan.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Registrant is unaware of any pending or outstanding litigation that is
not of a routine nature. The General Partner of the Registrant believes that
all such pending or outstanding litigation will be resolved without a material
adverse effect upon the business, financial condition, or operations of the
Partnership.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits
None
b) Reports on Form 8-K:
None filed during the quarter ended September 30, 1995.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
ANGELES PARTNERS VII
By: Angeles Realty Corporation
Corporate General Partner
By: /s/Carroll D. Vinson
Carroll D. Vinson
President
By: /s/Robert D. Long
Robert D. Long
Controller and Principal
Accounting Officer
Date:
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Angeles
Partners VII 1995 Third Quarter 10-QSB and is qualified in its entirety by
reference to such 10-QSB.
</LEGEND>
<CIK> 0000310303
<NAME> ANGELES PARTNERS VII
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 254,668
<SECURITIES> 0
<RECEIVABLES> 3,874
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 322,512
<PP&E> 5,484,272
<DEPRECIATION> (3,292,782)
<TOTAL-ASSETS> 2,517,751
<CURRENT-LIABILITIES> 93,724
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> (205,762)
<TOTAL-LIABILITY-AND-EQUITY> 2,517,751
<SALES> 0
<TOTAL-REVENUES> 785,550
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 842,713
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 179,211
<INCOME-PRETAX> (57,163)
<INCOME-TAX> 0
<INCOME-CONTINUING> (57,163)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (57,163)
<EPS-PRIMARY> (6.53)
<EPS-DILUTED> 0
</TABLE>
