<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, 2000
[ ] 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 accounting principles
generally accepted in the United States of America 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
accounting principles generally accepted in the United States of America for
complete financial statements. In the opinion of the General Partner 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, 1999 and should be read in
connection therewith. The results of operations for the three month period ended
March 31, 2000 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, December 31,
2000 1999
----------- -----------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash $ 1,040,296 $ 1,265,796
Accounts receivable 28,834 155,355
Food and beverage inventories 16,610 14,986
Prepaid expenses 55,544 84,719
----------- -----------
Total current assets 1,141,284 1,520,856
----------- -----------
LAND, PROPERTY AND EQUIPMENT - at cost:
Building and improvements 5,927,577 5,927,577
Hotel furnishings and equipment 1,860,239 1,860,239
Restaurant furnishings and equipment 58,638 58,638
Less accumulated depreciation (4,686,597) (4,596,597)
----------- -----------
3,159,857 3,249,857
Land 700,000 700,000
Construction in progress 364,398 74,273
----------- -----------
Land, property and equipment - net 4,224,255 4,024,130
----------- -----------
OTHER ASSETS:
Liquor license 40,000 40,000
Loan commitment fees - net 193,395 199,254
Escrow impound accounts 291,188 232,306
----------- -----------
Total other assets 524,583 471,560
----------- -----------
TOTAL $ 5,890,122 $ 6,016,546
=========== ===========
LIABILITIES AND PARTNERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable - trade $ 57,155 $ 53,637
Accounts payable - related 53,331 29,868
parties
Accrued incentive management fees - related 184,312 170,219
parties
Accrued salaries and wages 58,099 76,453
Accrued room tax 29,836 32,961
Accrued other 6,063 8,117
Advance deposits 402,165 308,276
Distributions payable 67,500 67,500
Current portion of long-term debt 109,875 107,786
----------- -----------
Total current liabilities 968,336 854,817
LONG-TERM DEBT 6,717,015 6,745,280
----------- -----------
Total liabilities 7,685,351 7,600,097
----------- -----------
PARTNERS' DEFICIT:
General Partners (45 units issued and (231,458) (229,341)
outstanding)
Limited Partners (4,455 units issued and outstanding) (1,563,771) (1,354,210)
----------- -----------
Total Partners' deficit (1,795,229) (1,583,551)
----------- -----------
TOTAL $ 5,890,122 $ 6,016,546
=========== ===========
</TABLE>
2
<PAGE> 4
CASA MUNRAS HOTEL PARTNERS, L.P.
(A LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(Unaudited)
<TABLE>
<CAPTION>
2000 1999
--------- ---------
<S> <C> <C>
REVENUES:
Room $ 631,333 $ 689,257
Food and beverage 142,557 161,631
Lease 24,096 23,858
Telephone 9,037 13,193
Other 17,867 14,346
--------- ---------
Total 824,890 902,285
--------- ---------
OPERATING EXPENSES:
Rooms 227,800 231,011
Food and beverage 143,388 147,646
Interest 131,754 133,688
Administrative and general 86,149 92,210
Depreciation and amortization 95,859 94,901
Management fee 46,166 55,462
Marketing 70,387 79,436
Repairs and maintenance 66,533 61,740
Energy cost 45,203 53,052
Partnership administration and professional 24,064 30,814
fees
Property taxes 18,720 15,769
Insurance 8,838 7,809
Telephone 4,207 4,761
--------- ---------
Total (including reimbursed costs and
payments for services to related parties
of $197,014 and $130,761 for the three
months ended March 31, 2000 and 1999,
respectively) 969,068 1,008,299
--------- ---------
NET LOSS $(144,178) $(106,014)
========= =========
</TABLE>
3
<PAGE> 5
CASA MUNRAS HOTEL PARTNERS, L.P.
(A LIMITED PARTNERSHIP)
STATEMENTS OF CHANGES IN PARTNERS' DEFICIT
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(Unaudited)
<TABLE>
<CAPTION>
2000 1999
--------- --------
<S> <C> <C>
ALLOCATION OF NET LOSS:
General Partners $ (1,442) $ (1,060)
Limited Partners (4,455 Limited
Partnership units outstanding) (142,736) (104,954)
--------- --------
Total $(144,178) $(106,014)
======== ========
DISTRIBUTION TO PARTNERS $ 67,500 --
======== ========
PER UNIT INFORMATION (based upon 4,500 total units outstanding):
Net Loss $ (32.04) $ (23.56)
======== ========
Distribution $ 15.00 --
======== ========
</TABLE>
4
<PAGE> 6
CASA MUNRAS HOTEL PARTNERS, L.P.
(A LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(Unaudited)
<TABLE>
<CAPTION>
2000 1999
----------- -----------
<S> <C> <C>
OPERATING ACTIVITIES:
Net loss $ (144,178) $ (106,014)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization 95,859 94,901
Change in assets and liabilities:
Accounts receivable 126,521 (3,907)
Food and beverage inventories (1,624) 2,198
Prepaid expenses 29,175 19,643
Account payable and accrued expenses 111,430 (34,539)
----------- -----------
Net cash provided by (used in) operating
activities (217,183) (27,718)
----------- -----------
INVESTING ACTIVITIES:
Acquisition of property and equipment (290,125) (70,311)
----------- -----------
FINANCING ACTIVITIES:
Payment of long-term debt (26,176) (24,242)
Impound escrow accounts (58,882) 31,502
Distributions paid to Partners (67,500) --
----------- -----------
Net cash (used in) provided by financing
activities (152,558) (7,260)
----------- -----------
DECREASE IN CASH (225,500) (90,769)
CASH AT BEGINNING OF PERIOD (1,265,796) (1,077,900)
----------- -----------
CASH AT END OF PERIOD $ 1,040,296 $ 987,131
=========== ===========
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION -
Cash paid during the period for interest $ 131,754 $ 133,688
=========== ===========
</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, 2000 and 1999
For the three months ended March 31, 2000 as compared to the same period
of the prior year, occupancy rates at the Registrant's hotel were 44% versus 54%
and average room rates were $94.34 versus $84.76, resulting in a decrease in
room revenue totaling $57,924 for the three months ended March 31, 2000 as
compared to the comparable period in 1999. Food and beverage revenues decreased
$19,074 for the three months ended March 31, 2000 as compared to the first
quarter of 1999. The increase in room rates reflects management's decision to
charge more for rooms as a result of the capital improvements program and as a
result of the new room addition. The decrease in occupancy is attributed to
reduced group business at the property in the first quarter of 2000 as compared
to the similar quarter in 1999. The reason for decreased food and beverage
revenues in the first quarter 2000 as compared to the similar quarter in 1999 is
primarily due to reduced patrons in the restaurant due to decreased occupancy.
Operating expenses totaled $969,068 and $1,008,299 for the three months
ended March 31, 2000 and 1999, respectively. The principal reasons for the
decrease in operating expenses in 2000 as compared to 1999 were reduced
departmental costs in dollar value due to reduced occupancy, which factor
directly impacts departmental expenses per room rented.
Net loss increased $38,164 to $144,178 for the three months ended March
31, 2000 as compared to the three months ended March 31, 1999. The increase in
the net loss in the first quarter of 2000 as compared to 1999 is primarily a
result of reduced revenue.
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, payments on the first mortgage, renovations and
to pay distributions to Partners.
During the three months ended March 31, 2000, the Registrant generated
$217,183 in net cash flow for operating activities. Reductions in long-term debt
totaled $26,176 and impound escrow accounts increased $58,882 during the first
quarter 2000.
Acquisition of property and equipment during the three months ended
March 31, 2000 totaled $290,125. It is estimated that approximately $400,000
more will be expended in 2000 for ongoing renovations of existing assets.
Distributions totaling $67,500 were accrued in the first quarter and
paid in the second quarter 2000.
6
<PAGE> 8
The General Partner intends, to the extent cash from operations is
available and such distributions are permitted under the first mortgage payable,
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.
CASA MUNRAS GP, LLC
General Partner
By JOHN F. ROTHMAN
-------------------
John F. Rothman, Managing Member
Dated: May 9, 2000
8
<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-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 1,040,296
<SECURITIES> 0
<RECEIVABLES> 28,834
<ALLOWANCES> 0
<INVENTORY> 16,610
<CURRENT-ASSETS> 1,141,284
<PP&E> 3,159,857
<DEPRECIATION> 4,686,597
<TOTAL-ASSETS> 5,890,122
<CURRENT-LIABILITIES> 968,336
<BONDS> 6,717,015
0
0
<COMMON> 0
<OTHER-SE> 1,795,229
<TOTAL-LIABILITY-AND-EQUITY> 5,890,122
<SALES> 824,890
<TOTAL-REVENUES> 824,890
<CGS> 0
<TOTAL-COSTS> 969,068
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 131,754
<INCOME-PRETAX> (144,178)
<INCOME-TAX> 0
<INCOME-CONTINUING> (144,178)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (144,178)
<EPS-BASIC> (32.04)
<EPS-DILUTED> (32.04)
</TABLE>
