<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 June 30, 1996
[ ] Transition report under Section 13 or 15(d) of the Exchange Act
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)
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
--- ---
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 and six month periods ended June 30, 1996 are not necessarily
indicative of the results to be expected for the full year.
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CASA MUNRAS HOTEL PARTNERS, L.P.
(A Limited Partnership)
BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
June 30, December 31,
1996 1995
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash $ 338,681 $ 213,250
Accounts receivable 292,384 104,739
Food and beverage inventories 19,579 18,215
Prepaid expenses 36,433 21,351
----------- -----------
Total current assets 687,077 357,555
----------- -----------
LAND, PROPERTY AND EQUIPMENT - at cost:
Building and improvements 4,562,255 4,562,255
Hotel furnishings and equipment 1,195,122 1,172,949
Restaurant furnishings and equipment 27,107 23,293
Construction in progress 322,265
Less accumulated depreciation (3,338,201) (3,164,201)
----------- -----------
2,768,548 2,594,296
Land 700,000 700,000
----------- -----------
Land, property and equipment - net 3,468,548 3,294,296
----------- -----------
LIQUOR LICENSE 40,000 40,000
----------- -----------
TOTAL $ 4,195,625 $ 3,691,851
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable - trade $ 63,018 $ 41,345
Accounts payable - related parties 69,165 98,917
Accrued incentive management fees - related parties 53,708 15,613
Accrued salaries and wages 61,171 51,998
Accrued room tax and other 69,307 24,707
Distributions payable 90,000 90,000
Short-term borrowing 394,500 4,500
Note payable - affiliate 315,396 300,076
----------- -----------
Total liabilities 1,116,265 627,156
----------- -----------
PARTNERS' EQUITY
General Partners (45 units issued and outstanding) 30,794 30,648
Limited Partners (4,455 units issued and outstanding) 3,048,566 3,034,047
----------- -----------
Total Partners' equity 3,079,360 3,064,695
----------- -----------
TOTAL $ 4,195,625 $ 3,691,851
=========== ===========
</TABLE>
2
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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, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REVENUES:
Room $ 837,485 $ 620,185 $1,336,558 $ 997,954
Food and beverage 192,122 170,309 343,030 279,307
Lease 23,634 19,776 45,031 42,928
Telephone 15,869 15,276 21,997 27,671
Other 4,667 3,307 9,425 5,382
---------- ---------- ---------- ----------
Total 1,073,777 828,853 1,756,041 1,353,242
---------- ---------- ---------- ----------
OPERATING EXPENSES:
Rooms 219,912 186,798 398,311 328,885
Food and beverage 162,344 134,635 296,757 244,303
Depreciation 87,000 83,500 174,000 167,000
Administrative and general 87,327 68,954 147,493 133,019
Marketing 72,407 57,428 134,236 104,631
Repairs and maintenance 64,742 49,858 115,638 91,242
Energy cost 37,446 42,455 80,552 86,983
Management fee 86,181 59,125 123,015 81,747
Partnership administration
and professional fees 13,899 24,799 43,810 34,865
Property taxes 16,311 13,721 28,762 30,016
Insurance 11,433 12,189 22,866 24,379
Interest 17,478 7,020 30,708 13,868
Telephone 5,216 5,517 10,228 10,449
---------- ---------- ---------- ----------
Total (including reimbursed
costs and payments for
services to related parties
of $250,897 and $122,362
and $419,380 and $229,696
for the three and six months
ended June 30, 1996 and
1995 respectively) 881,696 745,999 1,606,376 1,351,387
---------- ---------- ---------- ----------
NET INCOME $ 192,081 $ 82,854 $ 149,665 $ 1,855
========== ========== ========== ==========
</TABLE>
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<PAGE> 5
CASA MUNRAS HOTEL PARTNERS, L.P.
(A Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALLOCATION OF NET INCOME:
General Partners $ 1,921 $ 829 $ 1,497 $ 19
Limited Partners (4,455 Limited
Partnership units outstanding) 190,160 82,025 148,168 1,836
-------- -------- -------- --------
Total $192,081 $ 82,854 $149,665 $ 1,855
======== ======== ======== ========
DISTRIBUTION TO PARTNERS $ 90,000 $135,000 $135,000 $135,000
======== ======== ======== ========
PER UNIT INFORMATION
(based upon 4,500 total
Units outstanding):
Net income (loss) $ 42.68 $ 18.41 $ 33.26 $ 0.41
======== ======== ======== ========
Distribution $ 20.00 $ 30.00 $ 30.00 $ 30.00
======== ======== ======== ========
</TABLE>
4
<PAGE> 6
CASA MUNRAS HOTEL PARTNERS, L.P.
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
1996 1995
- ------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 149,665 $ 1,855
Adjustments to reconcile net cash provided
by operating activities:
Depreciation and amortization 174,000 167,000
Change in assets and liabilities:
Accounts receivable (187,645) (27,101)
Food and beverage inventories (1,364) (822)
Prepaid expenses (15,082) 16,864
Account payable and accrued expenses 173,789 2,242
--------- ---------
Net cash provided by operating activities 293,363 160,038
--------- ---------
INVESTING ACTIVITIES:
Acquisition of property and equipment (348,252) (18,481)
--------- ---------
FINANCING ACTIVITIES:
Note payable - affiliate 15,320 13,868
Short-term borrowings 390,000
Distributions paid to Partners (225,000) (90,000)
--------- ---------
Net cash provided by (used in) financing activities 180,320 (76,132)
--------- ---------
NET INCREASE IN CASH 125,431 65,425
CASH AT BEGINNING OF PERIOD 213,250 287,907
--------- ---------
CASH AT END OF PERIOD $ 338,681 $ 353,332
========= =========
</TABLE>
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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, 1996 and 1995
For the three and six months ended June 30, 1996 as compared to the
same period of the prior year, occupancy rates at the Registrant's hotel were
76% and 66% versus 64% and 52% and average room rates were $79.29 and $73.82
versus $68.33 and $69.51, resulting in increases in room revenue for the three
and six months ended June 30, 1996 of $237,300 and $358,604, respectively, as
compared to the comparable periods in 1995. Food and beverage revenues increased
approximately $22,000 and $64,000, or 13% and 23%, for the three and six months
ended June 30, 1996 as compared to the comparable periods in 1995. The increase
in occupancy, average room rates 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 82% from
90% and 91% from 100% for the three and six months ended June 30, 1996 as
compared to the comparable periods in 1995. 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, because a substantial proportion of
such expenses are fixed.
Net income increased to $192,081 and $149,665 for the three months and
six months ended June 30, 1996, as compared to $82,854 and $1,855 for the
comparable periods in 1995, reflecting the revenue increases and reductions in
operating expenses as a percentage of revenues described above.
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 six months ended June 30, 1996, the Registrant generated
$203,363 in net cash flow from operating activities. For the first six months of
calendar 1996, the Registrant distributed $135,000 to Partners in respect of
earnings for the quarters ended December 31, 1995 and March 31, 1996. In June
1996, the General Partners declared a distribution to Partners totaling $90,000,
which amount was paid in July 1996.
Acquisition of property and equipment during the six months ended June
30, 1996 totaled $348,252. It is estimated that approximately $150,000 more will
be expended in 1996 to continue the renovation of the hotel. Such renovations of
property and equipment were, and will
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continue to be, funded from 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 distributions to
partners.
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.
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.
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<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 /s/ JOHN F. ROTHMAN
-------------------
John F. Rothman
General Partner
Dated: August 14, 1996
<PAGE> 10
EXHIBIT INDEX
Sequentially
Exhibit Numbered
Number Description Page
- ------ ----------- ----
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 338,681
<SECURITIES> 0
<RECEIVABLES> 292,384
<ALLOWANCES> 0
<INVENTORY> 19,579
<CURRENT-ASSETS> 687,077
<PP&E> 6,806,749
<DEPRECIATION> 3,338,201
<TOTAL-ASSETS> 4,195,625
<CURRENT-LIABILITIES> 1,116,265
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 3,079,360
<TOTAL-LIABILITY-AND-EQUITY> 4,195,625
<SALES> 1,756,041
<TOTAL-REVENUES> 1,756,041
<CGS> 0
<TOTAL-COSTS> 1,606,376
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 30,708
<INCOME-PRETAX> 149,665
<INCOME-TAX> 0
<INCOME-CONTINUING> 149,665
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 149,665
<EPS-PRIMARY> 33.26
<EPS-DILUTED> 0
</TABLE>
