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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] Quarterly report under Section 13 or 15(d) of the Securities Exchange
Act of 1934 For the quarterly period ended June 30, 1995
[ ] For the transition period from _______________ to _______________
Commission file number 0-8901
CASA MUNRAS HOTEL PARTNERS, L.P.
(Exact name of small business issuer as specified in its charter)
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<S> <C>
California 95-3235634
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
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5525 Oakdale Avenue, Suite 300, Woodland Hills, California 91364
(Address of principal executive office)
(818) 888-6500
(Registrant's telephone number, including Area Code)
Check whether the registrant: (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past 12 months, and
(2) has been subject to such filing requirements for the past 90 days.
Yes x No __
Transitional Small Business Disclosure Format: Yes ___ No x
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
The accompanying unaudited financial statements of Casa Munras
Hotel Partners, L.P. (formerly Western Host Monterey Partners) have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-QSB.
Accordingly, these statements do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of the General Partners of the
Registrant, all adjustments necessary for a fair presentation have been
included. The financial statements presented herein have been prepared in
accordance with the accounting policies described in the Registrant's Annual
Report on Form 10-KSB for the year ended December 31, 1994 and should be read
in connection therewith. The results of operations for the three and six month
period ended June 30, 1995 are not necessarily indicative of the results to be
expected for the full year.
1
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CASA MUNRAS HOTEL PARTNERS, L.P.
(A Limited Partnership)
BALANCE SHEETS
(Unaudited)
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<CAPTION>
June 30, December 31,
1995 1994
----------- ------------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash $ 353,332 $ 287,907
Accounts receivable 116,549 89,448
Food and beverage inventories 17,162 16,340
Prepaid expenses 29,259 46,123
----------- -----------
Total current assets 516,302 439,818
----------- -----------
LAND, PROPERTY AND EQUIPMENT - at cost:
Building and improvements 4,405,061 4,405,061
Hotel furnishings and equipment 1,037,166 1,032,648
Restaurant furnishings and equipment 20,684 6,721
Less accumulated depreciation (2,991,280) (2,829,280)
----------- -----------
2,471,631 2,615,150
Land 700,000 700,000
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Land, property and equipment - net 3,171,631 3,315,150
----------- -----------
OTHER ASSETS:
Liquor license 40,000 40,000
Loan commitment fee - net 833 5,833
----------- -----------
Total other assets 40,833 45,833
----------- -----------
TOTAL $ 3,728,766 $ 3,800,801
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable - trade $ 53,089 $ 61,594
Accounts payable - related parties 43,549 40,457
Accrued incentive management fees -
related parties 28,743 41,342
Accrued salaries and wages 44,736 40,523
Accrued room tax and other 43,297 27,256
Distributions payable 135,000 90,000
Note payable - affiliate 285,500 271,632
----------- -----------
Total liabilities 633,914 572,804
----------- -----------
PARTNERS' EQUITY
General Partners (45 units issued and
outstanding) 30,949 32,280
Limited Partners (4,455 units issued and
outstanding) 3,063,903 3,195,717
----------- -----------
Total Partners' equity 3,094,852 3,227,997
----------- -----------
TOTAL $ 3,728,766 $ 3,800,801
=========== ===========
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CASA MUNRAS HOTEL PARTNERS, L.P.
(A Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
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<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
------------------- ----------------------
1995 1994 1995 1994
-------- -------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUES:
Room $620,185 $589,871 $ 997,954 $ 967,357
Food and beverage 170,309 165,509 279,307 273,365
Lease 19,776 23,165 42,928 44,250
Telephone 15,276 7,130 27,671 12,831
Other 3,307 2,646 5,382 3,981
-------- -------- ---------- ----------
Total 828,853 788,321 1,353,242 1,301,784
-------- -------- ---------- ----------
OPERATING EXPENSES:
Rooms 186,798 179,965 328,885 345,755
Food and beverage 134,635 140,879 244,303 248,446
Depreciation 83,500 75,000 167,000 150,000
Administrative and general 68,954 61,703 133,019 116,705
Marketing 57,428 59,249 104,631 110,725
Repairs and maintenance 49,858 47,295 91,242 88,828
Energy cost 42,455 35,368 86,983 79,958
Management fee 59,125 55,208 81,747 74,672
Partnership administration
and professional fees 24,799 22,911 34,865 34,054
Property taxes 13,721 14,148 30,016 28,664
Insurance 12,189 13,548 24,379 27,095
Interest 7,020 6,355 13,868 8,438
Telephone 5,517 1,003 10,449 5,058
-------- -------- ---------- ----------
Total (including reimbursed
costs and payments for
services to related parties
of $122,362 and $130,301
and $229,696 and $250,407
for the three and six months
ended June 30, 1995 and
1994 respectively) 745,999 712,632 1,351,387 1,318,398
-------- -------- ---------- ----------
NET INCOME (LOSS) $ 82,854 $ 75,689 $ 1,855 $ (16,614)
======== ======== ========== ==========
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CASA MUNRAS HOTEL PARTNERS, L.P.
(A Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
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<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
1995 1994 1995 1994
-------- -------- -------- --------
<S> <C> <C> <C> <C>
ALLOCATION OF
NET INCOME (LOSS):
General Partners $ 829 $ 757 $ 19 $ (166)
Limited Partners (4,455 Limited
Partnership units outstanding) 82,025 74,932 1,836 (16,448)
-------- -------- -------- --------
Total $ 82,854 $ 75,689 $ 1,855 $(16,614)
======== ======== ======== ========
DISTRIBUTION TO PARTNERS $135,000 $135,000 $135,000 $135,000
======== ======== ======== ========
PER UNIT INFORMATION
(based upon 4,500 total
Units outstanding):
Net income (loss) $18.41 $16.82 $ 0.41 $(3.69)
====== ====== ====== ======
Distribution $30.00 $30.00 $30.00 $30.00
====== ====== ====== ======
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<PAGE> 6
CASA MUNRAS HOTEL PARTNERS, L.P.
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
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<CAPTION>
1995 1994
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<S> <C> <C>
OPERATING ACTIVITIES:
Net income (loss) $ 1,855 $(16,614)
Adjustments to reconcile net cash provided
by operating activities:
Depreciation and amortization 167,000 150,000
Change in assets and liabilities:
Accounts receivable (27,101) 26,289
Food and beverage inventories (822) 1,765
Prepaid expenses 16,864 (3,865)
Account payable and accrued expenses 2,242 23,250
-------- --------
Net cash provided by operating activities 160,038 180,825
-------- --------
INVESTING ACTIVITIES:
Acquisition of property and equipment (18,481) (431,679)
-------- --------
FINANCING ACTIVITIES:
Note payable - affiliate 13,868 258,438
Distributions paid to Partners (90,000) (180,000)
-------- --------
Net cash (used in) provided by financing activities (76,132) 78,438
-------- --------
NET INCREASE (DECREASE) IN CASH 65,425 (172,416)
CASH AT BEGINNING OF PERIOD 287,907 386,243
-------- --------
CASH AT END OF PERIOD $353,332 $213,827
======== ========
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Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Results of Operations for the Three and Six Months Ended June 30, 1995 and 1994
Occupancy and average room rates were 52% and 64% versus 51%
and 59% and $69.51 and $68.33 versus $70.13 and $72.73, resulting in increased
room revenue for the three and six months ended June 30, 1995 as compared to
1994, respectively. Food and beverage revenues are primarily based upon hotel
occupancy factors, resulting in slightly increased revenue levels for the two
periods.
The Registrant's operating expenses are primarily based upon
occupancy of the hotel and were up from the previous comparable periods at
levels consistent with the occupancy increase.
Liquidity and Capital Resources
The Registrant's primary source of cash is from the operation
and leasing of the hotel facility.
During the six months ended June 30, 1995, the Registrant
generated $160,038 in net cash flow from operating activities. In June 1995,
the General Partners declared a distribution to Partners of $135,000, which
amount was paid in July 1995. Acquisition of property and equipment during the
six months ended June 30, 1995 totalled $18,481.
In January 1995, the Registrant distributed $90,000 to
Partners in respect of earnings for the quarter ended December 31, 1994.
It is estimated that approximately $700,000 will be expended
in late 1995 and in 1996 to continue the renovation of the Hotel. Such
renovations of property and equipment are expected to be funded from cash
provided by operations and borrowings. In March 1994, an affiliate of one of
the General Partners loaned $250,000 to the Registrant to fund prior
acquisitions of property and equipment. Further, in August 1994, the
Registrant obtained a line of credit for up to $1,000,000 from a bank. No
amounts have been drawn under the line of credit. The line of credit expires
in August 1995. The General Partners are negotiating with the bank to extend
the line of credit. If such negotiations are successful, the Partnership
expects to borrow under the line of credit to finance the renovation of the
hotel. If such negotiations are not successful, the General Partners intend to
seek an alternative source of funds.
The General Partners intend, to the extent cash is available, to continue
making cash distributions to the Partners at amounts approximating the
Registrant's net income.
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PART II - OTHER INFORMATION
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits:
None.
(b) Reports on Form 8-K:
None.
7
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SIGNATURE
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.
CASA MUNRAS HOTEL PARTNERS, L.P.
By /s/ John F. Rothman
-------------------------
John F. Rothman
General Partner
Dated: August 10, 1995
8
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> APR-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 353,332
<SECURITIES> 0
<RECEIVABLES> 116,549
<ALLOWANCES> 0
<INVENTORY> 17,162
<CURRENT-ASSETS> 516,302
<PP&E> 6,162,911
<DEPRECIATION> 2,991,280
<TOTAL-ASSETS> 3,728,766
<CURRENT-LIABILITIES> 633,914
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 3,094,852
<TOTAL-LIABILITY-AND-EQUITY> 3,728,766
<SALES> 828,853
<TOTAL-REVENUES> 828,853
<CGS> 0
<TOTAL-COSTS> 745,999
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 7,020
<INCOME-PRETAX> 82,854
<INCOME-TAX> 0
<INCOME-CONTINUING> 82,854
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 82,854
<EPS-PRIMARY> 18.41
<EPS-DILUTED> 0
</TABLE>
