<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, 1996
[ ] Transition report under Section 13 or 15(d) of the Exchange Act For the
transition period from to
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Commission file number 0-8901
CASA MUNRAS HOTEL PARTNERS, L.P.
(Exact name of small business issuer as specified in its charter)
California 95-3235634
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5525 Oakdale Avenue, Suite 300, Woodland Hills, California 91364
(Address of principal executive offices)
(818) 888-6500
(Issuer's telephone number, including Area Code)
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, 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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<PAGE> 2
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,
1995 and should be read in connection therewith. The results of operations for
the three month period ended March 31, 1996 are not necessarily indicative of
the results to be expected for the full year.
<PAGE> 3
CASA MUNRAS HOTEL PARTNERS, L.P.
(A Limited Partnership)
BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
March 31, December 31,
1996 1995
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash $ 266,436 $ 213,250
Accounts receivable 129,280 104,739
Food and beverage inventories 18,664 18,215
Prepaid expenses 20,446 21,351
----------- -----------
Total current assets 434,826 357,555
----------- -----------
LAND, PROPERTY AND EQUIPMENT - at cost:
Building and improvements 4,562,255 4,562,255
Hotel furnishings and equipment 1,193,086 1,172,949
Restaurant furnishings and equipment 26,184 23,293
Construction in progress 255,732
Less accumulated depreciation (3,251,201) (3,164,201)
----------- -----------
2,786,056 2,594,296
Land 700,000 700,000
----------- -----------
Land, property and equipment - net 3,486,056 3,294,296
----------- -----------
LIQUOR LICENSE 40,000 40,000
----------- -----------
TOTAL $ 3,960,882 $ 3,691,851
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable - trade $ 66,978 $ 41,345
Accounts payable - related parties 63,008 98,917
Accrued incentive management fees - related parties 10,094 15,613
Accrued salaries and wages 55,667 51,998
Accrued room tax and other 40,716 24,707
Distributions payable 45,000 90,000
Short-term borrowing 394,500 4,500
Note payable - affiliate 307,640 300,076
----------- -----------
Total liabilities 983,603 627,156
----------- -----------
PARTNERS' EQUITY:
General Partners (45 units issued and outstanding) 29,774 30,648
Limited Partners (4,455 units issued and outstanding) 2,947,505 3,034,047
----------- -----------
Total Partners' equity 2,977,279 3,064,695
----------- -----------
TOTAL $ 3,960,882 $ 3,691,851
=========== ===========
</TABLE>
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2
<PAGE> 4
CASA MUNRAS HOTEL PARTNERS, L.P.
(A Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
1996 1995
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
REVENUES:
Room $499,073 $377,769
Food and beverage 150,908 108,998
Lease 21,397 23,152
Telephone 6,128 12,395
Other 4,758 2,075
-------- --------
Total 682,264 524,389
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OPERATING EXPENSES:
Rooms 178,399 142,087
Food and beverage 134,413 109,668
Depreciation and amortization 87,000 83,500
Marketing 61,829 47,203
Administrative and general 60,166 64,065
Repairs and maintenance 50,896 41,384
Energy cost 43,106 44,528
Management fee 36,834 22,622
Partnership administration and professional fees 29,911 10,066
Interest 13,230 6,848
Property taxes 12,451 16,295
Insurance 11,433 12,190
Telephone 5,012 4,932
-------- --------
Total (included reimbursed costs and payments for services to related
parties of $250,897 and $107,334 for the three months ended March
31, 1996 and 1995 respectively) 724,680 605,388
-------- --------
NET LOSS $(42,416) $(80,999)
======== ========
</TABLE>
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3
<PAGE> 5
CASA MUNRAS HOTEL PARTNERS, L.P.
(A Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
1996 1995
- --------------------------------------------------------------------------------------------
<S> <C> <C>
ALLOCATION OF NET LOSS:
General Partners $ (424) $ (810)
Limited Partners (4,455 Limited
Partnership units outstanding) (41,992) (80,189)
-------- --------
Total $(42,416) $(80,999)
======== ========
DISTRIBUTION TO PARTNERS $ 45,000 -
======== ========
PER UNIT INFORMATION (based upon
4,500 total Units outstanding):
Net loss $ (9.43) $ (18.00)
======== ========
Distributions $ 10.00 -
======== ========
</TABLE>
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4
<PAGE> 6
CASA MUNRAS HOTEL PARTNERS, L.P.
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
1996 1995
- -------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATING ACITVITIES:
Net loss $ (42,416) $(80,999)
Adjustments to reconcile net cash provided by
operating activities:
Depreciation and amortization 87,000 83,500
Change in assets and liabilities:
Accounts receivable (24,541) 47,870
Food and beverage inventories (449) (558)
Prepaid expenses 905 7,269
Accounts payable and accrued expenses 3,883 (43,616)
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Net cash provided by operating activities 24,382 13,466
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INVESTING ACTIVITIES -
Acquisition of property and equipment (278,760) (4,219)
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FINANCING ACTIVITIES:
Borrowings from affiliates 7,564 6,848
Short-term borrowings 390,000
Distributions paid to Partners (90,000) (90,000)
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Net cash provided by (used in) financing activities 307,564 (83,152)
--------- --------
NET INCREASE (DECREASE) IN CASH 53,186 (73,905)
CASH AT BEGINNING OF PERIOD 213,250 287,907
--------- --------
CASH AT END OF PERIOD $ 266,436 $214,002
========= ========
</TABLE>
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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, 1996 and 1995
For the three months ended March 31, 1996 as compared to the
same period of the prior year, occupancy rates at the Registrant's hotel were
55% versus 41% and average room rates were $66.16 versus $67.79, resulting in an
increase in room revenue of approximately $121,000 or 32%. Food and beverage
revenues increased $41,910, or 38%, to $150,908. The increase in occupancy and
food and beverage revenue is principally attributed to increased tourist travel
in the Monterey Peninsula area.
Operating expenses as a percentage of revenues decreased to
106% from 115%. The principal reason for the decrease in operating expenses as a
percentage of revenue is that as revenues increase, operating expenses,
particularly room and food and beverage expenses, increase at a proportionately
lower rate. Partnership administration and professional fees increased $19,845
to $29,911 in the first quarter of 1996 due to the payment of most year end
audit and tax preparation fees, while during the previous year, a higher
percentage of these fees were paid in the second quarter of 1995.
Liquidity and Capital Resources
The Registrant's primary source of cash is from the operation
and leasing of the hotel facility. The Registrant's primary uses of cash are to
fund hotel operating expenses and renovations and to pay distributions to
Partners.
During the three months ended March 31, 1996, the Registrant
generated $24,382 in net cash flow from operating activities. In January 1996,
the Registrant distributed $90,000 to Partners in respect of earnings for the
quarter ended December 31, 1995.
Acquisition of property and equipment during the three months
ended March 31, 1996 totaled $278,760. It is estimated that approximately
$300,000 more will be expended in 1996 to continue the renovation of the hotel.
Such renovations of property and equipment were funded with $390,000 borrowings
under the Multiple Disbursement Note, described in the Form 10-KSB, Item 1,
under the heading "Borrowings". The balance of such borrowings were used to fund
the payment of the fourth quarter 1995 distributions totaling $90,000 and for
working capital purposes.
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.
<PAGE> 8
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
27 Financial Data Schedule
(b) Reports on Form 8-K:
None.
<PAGE> 9
SIGNATURE
Pursuant to he 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 JOHN F. ROTHMAN
--------------------------------------
John F. Rothman
General Partner
Dated: May 15, 1996
<PAGE> 10
EXHIBIT INDEX
<TABLE>
<CAPTION>
Sequentially
Exhibit Numbered
Number Description Page
- ------ ----------- ------------
<S> <C> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 266,436
<SECURITIES> 0
<RECEIVABLES> 129,280
<ALLOWANCES> 0
<INVENTORY> 18,664
<CURRENT-ASSETS> 434,826
<PP&E> 3,486,056
<DEPRECIATION> 3,251,251
<TOTAL-ASSETS> 3,960,882
<CURRENT-LIABILITIES> 983,603
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,977,277
<TOTAL-LIABILITY-AND-EQUITY> 3,960,882
<SALES> 682,264
<TOTAL-REVENUES> 682,264
<CGS> 0
<TOTAL-COSTS> 724,680
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 13,230
<INCOME-PRETAX> (42,416)
<INCOME-TAX> 0
<INCOME-CONTINUING> (42,416)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (42,416)
<EPS-PRIMARY> (9.43)
<EPS-DILUTED> 0
</TABLE>
