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. 06/03/93.)
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 June 30, 1996
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period.........to.........
Commission file number 0-10362
MCCOMBS PROPERTIES V, LTD.
(Exact name of small business issuer as specified in its charter)
California 95-3639086
(State or other jurisdiction of (I.R.S. 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 Securities Exchange Act of 1934 during the preceding 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) MCCOMBS PROPERTIES V, LTD.
STATEMENT OF NET ASSETS IN LIQUIDATION
(Unaudited)
(in thousands)
June 30, 1996
Assets
Cash and cash equivalents $ 746
Liabilities
Other liabilities 186
Estimated costs during the period
of liquidation 8
194
Net assets in liquidation $ 552
See Accompanying Notes to Financial Statements
b) MCCOMBS PROPERTIES V, LTD.
STATEMENT OF CHANGES IN NET ASSETS IN LIQUIDATION
(Unaudited)
(in thousands)
June 30, 1996
Net assets in liquidation
at March 31, 1996 $ 556
Changes in net assets in liquidation
attributed to:
Decrease in unrestricted cash (53)
Decrease in other liabilities 50
Increase in estimated costs during
the period of liquidation (1)
Net assets in liquidation at June 30, 1996 $ 552
See Accompanying Notes to Financial Statements
b) MCCOMBS PROPERTIES V, LTD.
STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except unit data)
Three Months Ended
March 31, 1996
Revenues:
Rental income $ 112
Other income 22
Total revenues 134
Expenses:
Operating 62
General and administrative 16
Maintenance 7
Depreciation 24
Interest 48
Property taxes 8
Total expenses 165
Adjustment to liquidation basis (7)
Gain on disposition of property 769
Net (loss) income $ 731
Net (loss) income allocated
to general partners (1%) $ 7
Net (loss) income allocated
to limited partners (99%) 724
$ 731
Net (loss) income per limited
partnership unit $28.93
See Accompanying Notes to Financial Statements
b) MCCOMBS PROPERTIES V, LTD.
STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except unit data)
Three Months Ended Six Months Ended
June 30, 1995 June 30, 1995
Revenues:
Rental income $ 113 $ 229
Other income 16 27
Total revenues 129 256
Expenses:
Operating 80 133
General and administrative 12 22
Maintenance 19 29
Depreciation 24 47
Interest 52 105
Property taxes 8 17
Total expenses 195 353
Adjustment to liquidation
basis -- --
Gain on disposition of
property -- --
Net (loss) income $ (66) $ (97)
Net (loss) income allocated
to general partners (1%) $ -- $ --
Net (loss) income allocated
to limited partners (99%) (66) (97)
$ (66) $ (97)
Net (loss) income per limited
partnership unit $(2.66) $(3.91)
See Accompanying Notes to Financial Statements
d) MCCOMBS PROPERTIES V, LTD.
STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1995
<S> <C>
Cash flows from operating activities:
Net income (loss) $ (97)
Adjustments to liquidation basis --
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation 47
Amortization of discounts 4
Gain on disposition of investment property --
Change in accounts:
Restricted cash (16)
Accounts receivable --
Escrow for taxes (11)
Other assets (3)
Accounts payable 6
Tenant security deposit liabilities 2
Accrued taxes 16
Other liabilities (1)
Net cash used in operating activities (53)
Cash flows from investing activities:
Property improvements and replacements (18)
Proceeds from sale of investment property --
Net cash provided by (used in)
investing activities (18)
Cash flow from financing activities:
Payments on mortgage notes payable (7)
Net cash used in
financing activities (7)
Net increase (decrease) in cash and cash equivalents (78)
Cash and cash equivalents at beginning of period 821
Cash and cash equivalents at end of period $ 743
Supplemental disclosure of cash
flow information:
Cash paid for interest $ 101
<FN>
See Accompanying Notes to Financial Statements
</TABLE>
e) MCCOMBS PROPERTIES V, LTD.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note A - Basis of Presentation
As of March 31, 1996, McCombs Properties V, Ltd., a California limited
partnership ("Partnership"), adopted the liquidation basis of accounting. On
March 25, 1996, the Partnership sold Cimarron Apartments, the sole investment
property held by the Partnership, to an unaffiliated third party. Cimarron
Acquisition Partners, L.P., a Texas limited partnership, purchased the property
after the Partnership's negotiations with the holder of the first mortgage to
restructure said debt proved to be unsuccessful. The decision to sell the
property was further influenced by a shortage of cash to pay for necessary
capital improvements and a market that, in the opinion of CRPTEX, Inc.
("General Partner"), would not generate a return on the capital improvements.
Cimarron Acquisition Partners, L.P. paid $50,000 cash for Cimarron Apartments
and assumed mortgage debt of approximately $2,000,000 as well as approximately
$76,000 in liabilities for accounts payable and real property taxes assessed
against the property in 1995.
As a result of the decision to liquidate, the Partnership changed its basis of
accounting for its financial statements at March 31, 1996, from the going
concern basis of accounting to the liquidation basis of accounting.
Consequently, assets have been valued at estimated net realizable value and
liabilities are presented at their estimated settlement amounts, including
estimated costs associated with carrying out the liquidation. The valuation of
assets and liabilities necessarily requires many estimates and assumptions and
there are substantial uncertainties in carrying out the liquidation. The actual
realization of assets and settlement of liabilities could be higher or lower
than amounts indicated and is based upon the General Partner's estimates as of
the date of the financial statements.
The statement of net assets in liquidation as of June 30, 1996, includes
approximately $8,000 of accrued costs that the General Partner estimates will be
incurred during the period of liquidation, based on the assumption that the
liquidation process will be completed by September 30, 1996. The costs include
anticipated administrative expenses and are net of estimated interest income.
Because the success in realization of assets and the settlement of liabilities
is based on the General Partner's best estimates, the liquidation period may be
shorter than projected or it may be extended beyond the projected period.
The accompanying unaudited financial statements at June 30, 1996, have been
prepared in accordance with generally accepted accounting principles for interim
financial information under the liquidation basis of accounting 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 the General Partner, all adjustments considered necessary for a fair
presentation on the liquidation basis have been included. Operating results for
the six month period ended June 30, 1996, are not necessarily indicative of the
results that may be expected for the fiscal year ending December 31, 1996. For
further information, refer to the financial statements and footnotes thereto
included in the Partnership's annual report on Form 10-KSB for the year ended
December 31, 1995.
Note B - Transactions with Affiliated Parties
The Partnership has no employees and is dependent on the 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 transactions with the General Partner and affiliates for the six
months ended June 30, 1996 and 1995, are as follows:
1996 1995
(in thousands)
Property management fees $ 6 $12
Reimbursement for services from affiliates 16 14
The Partnership insured its property under a master policy through an agency and
insurer unaffiliated with the General Partner. An affiliate of the 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 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 General
Partner by virtue of the agent's obligations is not significant.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Results of Operation, Liquidity, and Capital Resources
As of March 31, 1996, the Partnership adopted the liquidation basis of
accounting. On March 25, 1996, the Partnership sold its sole investment
property, Cimarron Apartments, after negotiations with the holder of the first
mortgage to restructure the debt proved to be unsuccessful. The decision to
sell the property was further influenced by a shortage of cash to pay for
necessary capital improvements and a market that, in the opinion of the
Partnership's General Partner, would not generate a return on the capital
improvements.
As a result of the decision to liquidate the Partnership, the Partnership
changed its basis of accounting for its financial statements at March 31, 1996,
from the going concern basis of accounting to the liquidation basis of
accounting. Consequently, assets have been valued at the estimated net
realizable value (including subsequent actual transactions) and liabilities are
presented at their estimated settlement amounts, including estimated costs
associated with carrying out the liquidation. The valuation of assets and
liabilities necessarily requires many estimates and assumptions and there are
substantial uncertainties in carrying out the liquidation. The actual
realization of assets and settlement of liabilities could be higher or lower
than amounts indicated and is based upon the General Partner's estimates as of
the date of the financial statements.
Liquidity and Capital Resources
For the three months ended June 30, 1996, the Partnership recorded a net
decrease in net assets in liquidation of $4,000. The decrease is primarily due
to a decrease in unrestricted cash, which resulted from the payment of invoices
for additional costs during the period of liquidation that were not included as
of March 31, 1996.
The statement of net assets in liquidation as of June 30, 1996, includes
approximately $8,000 of net accrued costs that the General Partner estimates
will be incurred during the period of liquidation, based upon the assumption
that the liquidation process will be completed during the third quarter of 1996.
These costs include anticipated administrative expenses and are net of estimated
interest income. Because the success in realization of assets and the
settlement of liabilities is based upon the General Partner's best estimates,
the liquidation period may be shorter than projected or it may be extended
beyond the projected period.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits:
Exhibit 27, Financial Data Schedule, is filed as an exhibit to this
report.
b) Reports on Form 8-K:
None filed during the quarter ended June 30, 1996.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
MCCOMBS PROPERTIES V, LTD.
By: CRPTEX, INC.
the General Partner
By:/s/ Carroll D. Vinson
Carroll D. Vinson
President
By:/s/ Robert D. Long, Jr.
Robert D. Long, Jr.
Vice President/CAO
Date: August 12, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from McCombs
Properties V Ltd. 1996 Second Quarter 10-QSB and is qualified in its entirety by
reference to such 10-QSB filing.
</LEGEND>
<CIK> 0000353391
<NAME> MCCOMBS PROPERTIES V LTD
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 746
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 746
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 552
<TOTAL-LIABILITY-AND-EQUITY> 746
<SALES> 0
<TOTAL-REVENUES> 134
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 165
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 48
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 731
<EPS-PRIMARY> 28.93<F2>
<EPS-DILUTED> 0
<FN>
<F1>The Registrant has an unclassified balance sheet.
<F2>Multiplier is 1.
</FN>
</TABLE>
