<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, 1997
[ ] 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 (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 __
Transitional Small Business Disclosure Format: Yes __ No X
<PAGE> 2
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
The accompanying unaudited financial statements of Casa Munras Hotel
Partners, L.P. 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, 1996 and should be read in
connection therewith. The results of operations for the three month period ended
March 31, 1997 are not necessarily indicative of the results to be expected for
the full year.
1
<PAGE> 3
CASA MUNRAS HOTEL PARTNERS, L.P.
(A LIMITED PARTNERSHIP)
BALANCE SHEETS
<TABLE>
<CAPTION>
March 31,
1997 December 31,
(Unaudited) 1996
----------- -----------
ASSETS
<S> <C> <C>
CURRENT ASSETS:
Cash $ 205,353 $ 569,371
Accounts receivable 43,793 50,233
Food and beverage inventories 17,708 20,798
Prepaid expenses 44,364 38,458
----------- -----------
Total current assets 311,218 678,860
----------- -----------
LAND, PROPERTY AND EQUIPMENT - at cost:
Building and improvements 4,776,412 4,691,279
Hotel furnishings and equipment 1,408,245 1,403,594
Restaurant furnishings and equipment 33,733 33,733
Construction in progress 54,089
Less accumulated depreciation (3,595,381) (3,508,381)
----------- -----------
2,677,098 2,620,225
Land 700,000 700,000
----------- -----------
Land, property and equipment - net 3,377,098 3,320,225
----------- -----------
LIQUOR LICENSE 40,000 40,000
----------- -----------
TOTAL $ 3,728,316 $ 4,039,085
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable - trade $ 34,735 $ 49,379
Accounts payable - related parties 52,835 16,235
Accrued incentive management fees - related parties 30,563 121,929
Accrued salaries and wages 52,371 59,008
Accrued room tax and other 46,058 29,244
Distributions payable 45,000 171,000
Current portion of long-term debt 73,969 98,625
Note payable - affiliate 339,854 331,497
Total current liabilities 675,385 876,917
LONG-TERM DEBT 271,219 271,219
----------- -----------
Total liabilities 946,604 1,148,136
----------- -----------
PARTNERS' EQUITY:
General Partners (45 units issued and outstanding) 27,817 28,911
Limited Partners (4,455 units issued and outstanding) 2,753,895 2,862,038
----------- -----------
Total Partners' equity 2,781,712 2,890,949
----------- -----------
TOTAL $ 3,728,316 $ 4,039,085
=========== ===========
</TABLE>
2
<PAGE> 4
CASA MUNRAS HOTEL PARTNERS, L.P.
(A LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
--------- ---------
<S> <C> <C>
REVENUES:
Room $ 535,847 $ 499,073
Food and beverage 121,843 150,908
Lease 19,442 21,397
Telephone 9,708 6,128
Other 8,838 4,758
--------- ---------
Total 695,678 682,264
--------- ---------
OPERATING EXPENSES:
Rooms 185,670 178,399
Food and beverage 129,081 134,413
Depreciation and amortization 87,000 87,000
Administrative and general 79,913 60,166
Repairs and maintenance 61,682 50,896
Marketing 59,830 61,829
Energy cost 36,236 43,106
Partnership administration and professional fees 36,083 29,911
Management fee 35,801 36,834
Interest 17,185 13,230
Property taxes 15,122 12,451
Insurance 11,433 11,433
Telephone 4,879 5,012
--------- ---------
Total (including reimbursed costs and payments
for services to related parties of $168,814
and $250,897 for the three months ended
March 31, 1997 and 1996, respectively) 759,915 724,680
--------- ---------
NET LOSS ($ 64,237) ($ 42,416)
========= =========
</TABLE>
3
<PAGE> 5
CASA MUNRAS HOTEL PARTNERS, L.P.
(A LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
-------- --------
<S> <C> <C>
ALLOCATION OF NET LOSS:
General Partners ($ 642) ($ 424)
Limited Partners (4,455 Limited
Partnership units outstanding) (63,595) (41,992)
-------- --------
Total ($64,237) ($42,416)
======== ========
DISTRIBUTION TO PARTNERS $ 45,000 $ 45,000
======== ========
PER UNIT INFORMATION
(based upon 4,500 total
units outstanding):
Net Loss ($ 14.27) ($ 9.43)
======== ========
Distribution $ 10.00 $ 10.00
======== ========
</TABLE>
4
<PAGE> 6
CASA MUNRAS HOTEL PARTNERS, L.P.
(A LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
--------- ---------
<S> <C> <C>
OPERATING ACTIVITIES:
Net loss ($ 64,237) ($ 42,416)
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation and amortization 87,000 87,000
Change in assets and liabilities:
Accounts receivable 6,440 (24,541)
Food and beverage inventories 3,090 (449)
Prepaid expenses (5,906) 905
Account payable and accrued expenses (59,233) 3,883
--------- ---------
Net cash (used in) provided by operating activities (32,846) 24,382
--------- ---------
INVESTING ACTIVITIES:
Acquisition of property and equipment (143,873) (278,760)
--------- ---------
FINANCING ACTIVITIES:
Borrowings from affiliates 8,357 7,564
Distributions paid to Partners (171,000) (90,000)
Short-term borrowings 390,000
Payment of long-term debt (24,656)
--------- ---------
Net cash (used in) provided by financing activities (187,299) 307,564
--------- ---------
NET (DECREASE) INCREASE IN CASH (364,018) 53,186
CASH AT BEGINNING OF PERIOD 569,371 213,250
--------- ---------
CASH AT END OF PERIOD $ 205,353 $ 266,436
========= =========
</TABLE>
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, 1997 and 1996
For the three months ended March 31, 1997 as compared to the same
period of the prior year, occupancy rates at the Registrant's hotel were 51%
versus 55% and average room rates were $77.22 versus $66.16, resulting in an
increase in room revenue totaling $36,774 for the three months ended March 31,
1997 as compared to the comparable period in 1996. Food and beverage revenues
decreased $29,065, or 19%, for the three months ended March 31, 1997 as compared
to the first quarter of 1996. The increase in room rates reflects management's
decision to charge more for rooms as a result of the capital improvements
program. The decrease in occupancy is attributed to reduced leisure travel in
the Monterey Peninsula in the first quarter of 1997 as compared to 1996. Reduced
leisure travel and occupancy at the Registrant's hotel also impacted food and
beverage revenues.
Operating expenses totaled $759,915 and $724,680 for the three months
ended March 31, 1997 and 1996, respectively. The principal reason for the
increase in operating expenses in 1997 as compared to 1996 were one-time
increases in administrative labor costs, increased interest expense on increased
average borrowings outstanding and increased repair and maintenance costs.
Net loss increased $21,821 to a loss of $64,237 for the three months
ended March 31, 1997 as compared to a $42,416 net loss for the three months
ended March 31, 1996. The increase in the net loss is primarily a result of
increased operating expenses.
Liquidity and Capital Resources
The Registrant's primary source of cash is revenues 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, 1997, the Registrant
used $32,846 in net cash flow for operating activities. Reductions in long-term
debt totaled $24,656 with distributions paid totaling $171,000 during the first
quarter 1997.
As of the date of this Report, the General Partners are
continuing to evaluate the possible construction by the Partnership of 14
additional guest rooms on a small undeveloped portion of the Hotel property.
Construction of the additional rooms would be financed with additional long-term
borrowings and would be subject to, among other conditions, approval of the
Limited Partners.
6
<PAGE> 8
Acquisition of property and equipment (including $54,089 of
costs incurred to date to evaluate the possible construction by the Partnership
of the 14 additional guest rooms) during the three months ended March 31, 1997
totaled $143,873. It is estimated that approximately $100,000 more will be
expended in 1997 for ongoing renovations of existing assets. The General
Partners have not yet determined what the costs would be to construct the 14
additional guest rooms.
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.
7
<PAGE> 9
SIGNATURE
In accordance with the requirements of the Exchange Act, the Registrant has
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 12, 1997
By RONALD A. YOUNG
--------------------------------
Ronald A. Young
General partner
Dated: May 12, 1997
8
<PAGE> 10
EXHIBIT INDEX
Sequentially
Exhibit Numbered
Number Description Page
- ------ ----------- ------------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 205,353
<SECURITIES> 0
<RECEIVABLES> 43,793
<ALLOWANCES> 0
<INVENTORY> 17,708
<CURRENT-ASSETS> 311,218
<PP&E> 3,377,098
<DEPRECIATION> 3,595,381
<TOTAL-ASSETS> 3,728,316
<CURRENT-LIABILITIES> 675,385
<BONDS> 271,219
0
0
<COMMON> 0
<OTHER-SE> 2,781,712
<TOTAL-LIABILITY-AND-EQUITY> 3,728,316
<SALES> 695,678
<TOTAL-REVENUES> 695,678
<CGS> 0
<TOTAL-COSTS> 759,915
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 17,185
<INCOME-PRETAX> (64,237)
<INCOME-TAX> 0
<INCOME-CONTINUING> (64,237)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (64,237)
<EPS-PRIMARY> (14.27)
<EPS-DILUTED> 0
</TABLE>
