FORM 10-QSB.--QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
QUARTERLY OR TRANSITIONAL REPORT
(As last amended by 34-32231, eff. 6/3/93.)
U.S. Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1997
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT
For the transition period.........to.........
Commission file number 0-10199
ANGELES PARK COMMUNITIES, LTD.
(Exact name of small business issuer as specified in its charter)
California 95-3558497
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
One Insignia Financial Plaza, P.O. Box 1089
Greenville, South Carolina 29602
(Address of principal executive offices) (Zip Code)
Issuer's telephone number (864) 239-1000
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
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
a) ANGELES PARK COMMUNITIES, LTD.
CONSOLIDATED BALANCE SHEET
(Unaudited)
(in thousands, except unit data)
March 31, 1997
Assets
Cash and cash equivalents:
Unrestricted $ 326
Restricted--tenant security deposits 3
Accounts receivable 10
Escrow for taxes 73
Other assets 223
Investment properties:
Land $ 1,043
Buildings and related personal property 4,902
5,945
Less accumulated depreciation (4,563) 1,382
$ 2,017
Liabilities and Partners' Deficit
Liabilities
Accounts payable $ 11
Tenant security deposits 3
Other liabilities 221
Mortgage note payable 4,904
Partners' Deficit
General partners' $ (163)
Limited partners' (15,044 units issued
and outstanding) (2,959) (3,122)
$ 2,017
See Accompanying Notes to Consolidated Financial Statements
b) ANGELES PARK COMMUNITIES, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except unit data)
Three Months Ended
March 31,
1997 1996
Revenues:
Rental income $ 512 $ 504
Other income 7 17
Total revenues 519 521
Expenses:
Operating 168 177
General and administrative 43 41
Maintenance 37 23
Depreciation 17 81
Interest 124 125
Property taxes 54 54
Total expenses 443 501
Net income $ 76 $ 20
Net income allocated to general partners (1%) $ 1 $ --
Net income allocated to limited partners (99%) 75 20
Net income $ 76 $ 20
Net income per limited partnership unit $ 5.00 $ 1.33
See Accompanying Notes to Consolidated Financial Statements
c) ANGELES PARK COMMUNITIES, LTD.
CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' DEFICIT
(Unaudited)
(in thousands, except unit data)
<TABLE>
<CAPTION>
Limited
Partnership General Limited
Units Partners Partners Total
<S> <C> <C> <C> <C>
Original capital contributions 15,112 $ 1 $15,112 $15,113
Partners' deficit at
December 31, 1996 15,044 $ (164) $(3,034) $(3,198)
Net income for the three months
ended March 31, 1997 -- 1 75 76
Partners' deficit at
March 31, 1997 15,044 $ (163) $(2,959) $(3,122)
<FN>
See Accompanying Notes to Consolidated Financial Statements
</TABLE>
d) ANGELES PARK COMMUNITIES, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Three Months Ended
March 31,
1997 1996
Cash flows from operating activities:
Net income $ 76 $ 20
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 17 81
Amortization of loan costs 12 12
Change in accounts:
Restricted cash -- (9)
Accounts receivable 14 1
Escrows for taxes (55) (44)
Other assets -- --
Accounts payable (42) --
Tenant security deposit payable -- 9
Other liabilities 40 9
Net cash provided by
operating activities 62 79
Cash flows from investing activities:
Property improvements and replacements (73) (53)
Cash flows used in financing activities:
Payments on mortgage notes payable (10) (9)
Net (decrease) increase in cash (21) 17
Cash and cash equivalents at beginning of period 347 181
Cash and cash equivalents at end of period $ 326 $ 198
Supplemental disclosure of cash flow information:
Cash paid for interest $ 112 $ 113
See Accompanying Notes to Consolidated Financial Statements
e) ANGELES PARK COMMUNITIES, LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-QSB and Item 310(b) of Regulation S-B.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of Angeles Realty Corporation (the "Managing General Partner"),
all adjustments (consisting of normal recurring accruals) considered necessary
for a fair presentation have been included. Operating results for the three
month period ended March 31, 1997, are not necessarily indicative of the results
that may be expected for the fiscal year ending December 31, 1997. For further
information, refer to the financial statements and footnotes thereto included in
Angeles Park Communities, Ltd.'s (the "Partnership") annual report on Form 10-
KSB for the fiscal year ended December 31, 1996.
NOTE B - TRANSACTIONS WITH AFFILIATED PARTIES
The Partnership has no employees and is dependent on the Managing General
Partner and its affiliates for the management and administration of all
Partnership activities. The Partnership Agreement provides for payments to
affiliates for services and as reimbursement of certain expenses incurred by
affiliates on behalf of the Partnership. The following amounts were paid to the
Managing General Partner and affiliates during the three month periods ended
March 31, 1997 and 1996 (dollar amounts in thousands):
1997 1996
Property management fees (included in
operating expenses) $27 $25
Reimbursement for services of affiliates
(included in general and administrative
expenses) 32 29
The Partnership insures its properties under a master policy through an agency
and insurer unaffiliated with the Managing General Partner. An affiliate of the
Managing General Partner acquired, in the acquisition of a business, certain
financial obligations from an insurance agency which was later acquired by the
agent who placed the current year's master policy. The current agent assumed
the financial obligations to the affiliate of the Managing General Partner who
receives payments on these obligations from the agent. The amount of the
Partnership's insurance premiums accruing to the benefit of the affiliate of the
Managing General Partner by virtue of the agent's obligations is not
significant.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
The Partnership's investment properties consist of one mobile home park and one
recreational vehicle park. The following table sets forth the average occupancy
of the properties for each of the three month periods ended March 31, 1997 and
1996:
Average Occupancy
Property 1997 1996
Cloverleaf Farms, Mobile Home Park 99% 99%
Brooksville, Florida
Cloverleaf Forest, Recreational 85% 84%
Vehicle Park
Brooksville, Florida (1)
(1) This is a normal average occupancy for this property for this time of the
year due to many tenants returning to their summer homes which are located
in cooler climates. Occupancy should increase again in the fall and
winter months.
For the three months ended March 31, 1997, the Partnership generated a net
income of $76,000 versus net income of $20,000 for the three months ended March
31, 1996. The increase in net income is primarily due to a decrease in
depreciation expense. The decrease in depreciation expense is due to a major
building and improvement at the Cloverleaf Farms property becoming fully
depreciated at December 1996. The decrease in depreciation expense was
partially offset by an increase in maintenance expense. Maintenance expense
increased due to an increase in contract yards and grounds expense at Cloverleaf
Farms as more work could be done during the first quarter of 1997 due to the
warmer weather.
As part of the ongoing business plan of the Partnership, the Managing General
Partner monitors the rental market environment of each of its investment
properties to assess the feasibility of increasing rents, maintaining or
increasing occupancy levels and protecting the Partnership from increases in
expense. As part of this plan, the Managing General Partner attempts to protect
the Partnership from inflation-related increases in expenses by increasing rents
and maintaining a high overall occupancy level. However, due to changing market
conditions, which can result in the use of rental concessions and rental
reductions to offset softening market conditions, there is no guarantee that the
Managing General Partner will be able to sustain such a plan.
On March 31, 1997, the Partnership had unrestricted cash of $326,000 versus
$198,000 at March 31, 1996. The decrease in cash provided by operating
activities is primarily due to a decrease in accounts payable due to the payment
of invoices accrued at year-end which is partially offset by an increase in
other liabilities during the three months ended March 31, 1997. The increase in
cash used in investing activities is attributable to an increase in spending on
capital improvements.
The sufficiency of existing liquid assets to meet future liquidity and capital
expenditure requirements is directly related to the level of capital
expenditures required at the properties to adequately maintain the physical
assets and other operating needs of the Partnership. The mortgage indebtedness
of $4,904,000 is being amortized over 30 years with a balloon payment of
$4,692,000 due in July 2001, at which time the properties will either be
refinanced or sold. In the fourth quarter of 1996, the Managing General Partner
received a purchase offer from the homewoners association of Cloverleaf Farms.
The Managing General Partner has rejected the purchase offer and extended a
counteroffer to the homeowners association. Future cash distributions will
depend on the levels of net cash generated from operations, property sales and
the availability of cash reserves. There were no cash distributions during the
three months ended March 31, 1997 and 1996.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits: Exhibit 27, Financial Data Schedule.
b) Reports on Form 8-K: None filed during the quarter ended
March 31, 1997.
SIGNATURES
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.
ANGELES PARK COMMUNITIES, LTD.
By: Angeles Realty Corporation
Managing General Partner
By: /s/Carroll D. Vinson
Carroll D. Vinson
President, Director
By: /s/Robert D. Long, Jr.
Robert D. Long, Jr.
Vice President and Chief Accounting
Officer
Date: May 13, 1997
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Angeles Park
Communities, Ltd. 1997 First Quarter 10-QSB and is qualified in its entirety by
reference to such 10-QSB filing.
</LEGEND>
<CIK> 0000317969
<NAME> ANGELES PARK COMMUNITIES, LTD.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 326
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 5,945
<DEPRECIATION> (4,563)
<TOTAL-ASSETS> 2,017
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 4,904
0
0
<COMMON> 0
<OTHER-SE> (3,122)
<TOTAL-LIABILITY-AND-EQUITY> 2,017
<SALES> 0
<TOTAL-REVENUES> 519
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 443
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 124
<INCOME-PRETAX> 76
<INCOME-TAX> 0
<INCOME-CONTINUING> 76
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 76
<EPS-PRIMARY> 5.00<F2>
<EPS-DILUTED> 0
<FN>
<F1>Registrant has an unclassified balance sheet.
<F2>Multiplier is 1.
</FN>
</TABLE>
