<PAGE> 1
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 March 31, 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)
<TABLE>
<S> <C>
California 95-3235634
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
</TABLE>
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
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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-month period ended March 31, 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)
<TABLE>
<CAPTION>
March 31, December 31
1995 1994
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<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash $ 214,002 $ 287,907
Accounts receivable 41,578 89,448
Food and beverage inventories 16,898 16,340
Prepaid expenses 38,854 46,123
----------- -----------
Total current assets 311,332 439,818
----------- -----------
LAND, PROPERTY AND EQUIPMENT - at cost:
Building and improvements 4,405,061 4,405,061
Hotel furnishings and equipment 1,035,861 1,032,648
Restaurant furnishings and equipment 7,727 6,721
Less accumulated depreciation (2,910,280) (2,829,280)
----------- -----------
2,538,369 2,615,150
Land 700,000 700,000
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Land, property and equipment - net 3,238,369 3,315,150
----------- -----------
OTHER ASSETS
Liquor license 40,000 40,000
Loan commitment fee - net 3,333 5,833
----------- -----------
Total other assets 43,333 45,833
----------- -----------
TOTAL $ 3,593,034 $ 3,800,801
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable - trade $ 48,370 $ 61,594
Accounts payable - related parties 45,951 40,457
Accrued incentive management fees -
related parties 41,342
Accrued salaries and wages 39,552 40,523
Accrued room tax and other 33,683 27,256
Distributions payable 90,000
Note payable - affiliate 278,480 271,632
----------- -----------
Total liabilities 446,036 572,804
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PARTNERS' EQUITY
General Partners (45 units issued and
outstanding) 31,470 32,280
Limited Partners (4,455 units issued and
outstanding) 3,115,528 3,195,717
----------- -----------
Total Partners' equity 3,146,998 3,227,997
----------- -----------
TOTAL $ 3,593,034 $ 3,800,801
=========== ===========
</TABLE>
2
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CASA MUNRAS HOTEL PARTNERS, L.P.
(A Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
(Unaudited)
<TABLE>
<CAPTION>
1995 1994
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<S> <C> <C>
REVENUES:
Room $377,769 $377,486
Food and beverage 108,998 107,856
Lease 23,152 21,085
Telephone 12,395 5,701
Other 2,075 1,335
-------- --------
Total 524,389 513,463
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OPERATING EXPENSES:
Rooms 142,087 165,790
Food and beverage 109,668 107,567
Depreciation and amortization 83,500 75,000
Administrative and general 64,065 55,002
Marketing 47,203 51,476
Energy cost 44,528 44,590
Repairs and maintenance 41,384 41,533
Management fee 22,622 19,464
Property taxes 16,295 14,516
Insurance 12,190 13,547
Partnership administration and professional
fees 10,066 11,143
Interest 6,848 2,083
Telephone 4,932 4,055
-------- --------
Total (included reimbursed costs and
payments for services to related
parties of $107,334 and $120,106
for the three months ended March 31,
1995 and 1994 respectively) 605,388 605,766
-------- --------
NET LOSS ($80,999) ($92,303)
======== ========
</TABLE>
3
<PAGE> 5
CASA MUNRAS HOTEL PARTNERS, L.P.
(A Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
(Unaudited)
<TABLE>
<CAPTION>
1995 1994
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<S> <C> <C>
ALLOCATION OF NET LOSS:
General Partners ($810) ($923)
Limited Partners (4,455 Limited
Partnership units outstanding) (80,189) (91,380)
-------- --------
Total ($80,999) ($92,303)
======== ========
DISTRIBUTION TO PARTNERS $0 $0
======== ========
PER UNIT INFORMATION (based upon
4,500 total Units outstanding):
Net loss ($18.00) ($20.51)
======== ========
Distributions $0.00 $0.00
======== ========
</TABLE>
4
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CASA MUNRAS HOTEL PARTNERS, L.P.
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
(Unaudited)
<TABLE>
<CAPTION>
1995 1994
<S> <C> <C>
OPERATING ACITVITIES:
Net loss ($80,999) ($92,303)
Adjustments to reconcile net cash provided by
(used in) operating activities:
Depreciation and amortization 83,500 75,000
Change in assets and liabilities:
Accounts receivable 47,870 25,940
Food and beverage inventories (558) (1,980)
Prepaid expenses 7,269 (6,003)
Accounts payable and accrued expenses (43,616) (8,818)
-------- --------
Net cash provided by (used in) operating
activities 13,466 (8,164)
-------- --------
INVESTING ACTIVITIES -
Acquisition of property and equipment (4,219) (284,840)
-------- --------
FINANCING ACTIVITIES:
Note payable - affiliate 6,848 252,083
Distributions paid to Partners (90,000) (45,000)
-------- --------
Net cash (used in) provided by financing
activities (83,152) 207,083
-------- --------
NET DECREASE IN CASH (73,905) (85,921)
CASH AT BEGINNING OF PERIOD 287,907 386,243
-------- --------
CASH AT END OF PERIOD $214,002 $300,322
======== ========
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5
<PAGE> 7
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Results of Operations for the Three Months Ended March 31, 1995 and 1994
Occupancy and average room rates were 41% versus 42% and $67.79 versus
$66.42, resulting in approximately equal room revenue for the three months
ended March 31, 1995 as compared to 1994. Food and beverage revenues are
primarily based upon hotel occupancy factors, resulting in approximately equal
revenue levels for the two periods.
The Registrant incurred interest expense totalling $6,848 and $2,083
for the three months ended March 31, 1995 and 1994, respectively, as a result
of borrowings to fund a portion of the expenditures for property and equipment
in connection with the renovation of the Hotel. The funds were borrowed from
an affiliate of Ronald A. Young, a general partner, pursuant to an unsecured
demand note in the principal amount of $250,000 dated March 21, 1994 that bears
interest at a rate of 10% per annum. Accrued but unpaid interest is added to
principal monthly pursuant to the terms of the demand note.
Liquidity and Capital Resources
The Registrant's primary source of cash is from the operation and
leasing of the hotel facility.
During the three months ended March 31, 1995, the Registrant generated
$13,466 in net cash flow from operating activities. Distributions paid in the
first quarter of 1995 to Partners totaled $90,000. Acquisition of property and
equipment during the three months ended March 31, 1995 totalled $4,219.
It is estimated that approximately $700,000 will be expended in late
1995 and 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 Partnership expects to make draws under the line
of credit to repay the affiliate loan and to finance such renovations. The
Partnership will request that the bank convert the line of credit to a term
note agreement upon expiration of the line of credit.
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:
No current reports on Form 8-K have been filed during
the quarter for which this report is filed.
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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: May 12, 1995
8
<PAGE> 10
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
Number Description
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<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<EXCHANGE-RATE> 1
<CASH> 214,002
<SECURITIES> 0
<RECEIVABLES> 41,578
<ALLOWANCES> 0
<INVENTORY> 16,898
<CURRENT-ASSETS> 311,332
<PP&E> 6,148,649
<DEPRECIATION> 2,910,280
<TOTAL-ASSETS> 3,593,034
<CURRENT-LIABILITIES> 446,036
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 3,146,998
<TOTAL-LIABILITY-AND-EQUITY> 3,593,034
<SALES> 524,389
<TOTAL-REVENUES> 524,389
<CGS> 0
<TOTAL-COSTS> 605,388
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6,848
<INCOME-PRETAX> (80,999)
<INCOME-TAX> 0
<INCOME-CONTINUING> (80,999)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (80,999)
<EPS-PRIMARY> (18.00)
<EPS-DILUTED> 0
</TABLE>
