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 March 31, 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)
March 31, 1996
Assets
Cash and cash equivalents $ 799
Liabilities
Other liabilities 236
Estimated costs during the period
of liquidation 7
243
Net assets in liquidation $ 556
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 1995
Revenues:
Rental income $ 112 $ 115
Other income 22 11
Total revenues 134 126
Expenses:
Operating 62 48
General and administrative 16 15
Maintenance 7 10
Depreciation 24 23
Interest 48 53
Property taxes 8 8
Total expenses 165 157
Adjustment to liquidation basis (7) --
Gain on disposition of property 769 --
Net income (loss) $ 731 $ (31)
Net income (loss) allocated to general
partners (1%) $ 7 $ --
Net income (loss) allocated to limited
partners (99%) 724 (31)
$ 731 $ (31)
Net income (loss) per limited partnership unit $28.93 $ (1.24)
See Accompanying Notes to Financial Statements
c) MCCOMBS PROPERTIES V, LTD.
STATEMENT OF CHANGES IN PARTNERS' DEFICIT/NET ASSETS IN LIQUIDATION
(Unaudited)
(in thousands, except unit data)
<TABLE>
<CAPTION>
Limited
Partnership General Limited
Units Partners Partners Total
<S> <C> <C> <C> <C>
Partners' deficit
at December 31, 1995 25,000 $ (45) $ (130) $ (175)
Net income for the three
months ended March 31, 1996 7 724 731
Net assets in liquidation
at March 31, 1996 25,000 $ (38) $ 594 $ 556
<FN>
See Accompanying Notes to Financial Statements
</TABLE>
d) MCCOMBS PROPERTIES V, LTD.
STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1996 1995
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 731 $ (31)
Adjustments to liquidation basis 7 --
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation 24 23
Amortization of discounts -- 2
Gain on disposition of investment property (769) --
Change in accounts:
Restricted cash 17 (1)
Accounts receivable (2) (1)
Escrow for taxes 25 --
Other assets 1 (2)
Accounts payable (23) (15)
Tenant security deposit liabilities -- 2
Accrued taxes 8 9
Other liabilities (12) 8
Net cash provided by (used in)
operating activities 7 (6)
Cash flows from investing activities:
Property improvements and replacements (2) (8)
Proceeds from sale of investment property 50 --
Net cash provided by (used in)
investing activities 48 (8)
Cash flow from financing activities:
Payments on mortgage notes payable -- (3)
Net cash used in
financing activities -- (3)
Net increase (decrease) in cash and cash equivalents 55 (17)
Cash and cash equivalents at beginning of period 744 821
Cash and cash equivalents at end of period $ 799 $ 804
Supplemental disclosure of cash
flow information:
Cash paid for interest $ -- $ 51
<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 the Partnership's
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 March 31, 1996, includes
approximately $7,000 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.
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
three months ended March 31, 1996 and 1995, are as follows:
1996 1995
(in thousands)
Property management fees $ 6 $ 6
Reimbursement for services from affiliates 7 7
The Partnership insures its properties 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. Occupancy for the three months ended March 31, 1996 and 1995, was
86% and 81%, respectively. The increase in occupancy is attributable to a
modest recovery in the local economy.
The Partnership's net income for the three months ended March 31, 1996, was
approximately $731,000 versus a net loss of approximately $31,000 for the
corresponding period of 1995. The increase in net income is primarily
attributable to the gain on disposition of investment property of approximately
$769,000 resulting from the sale of Cimarron Apartments on March 25, 1996.
Contributing to the increase in net income was an increase in other income.
Other income increased due to an increase in interest income resulting from the
transfer of excess cash to investments earning higher interest rates.
Offsetting the increase in net income was an increase in operating expenses due
to an increase in personnel costs.
At March 31, 1996, the Partnership held unrestricted cash of approximately
$799,000 compared to $804,000 at March 31, 1995. Net cash provided by operating
activities increased primarily due to the decreases in restricted cash and
escrows for taxes. These decreases were the result of the transfer of these
accounts to the new owners. These decreases were offset by the decrease in
accounts payable and other liabilities which is attributable to timing of
payments to vendors. Net cash provided by investing activities increased as a
result of the $50,000 in proceeds received from the sale of Cimarron Apartments.
Net cash used in financing activities decreased due to the General Partner's
decision not to service the debt after December 31, 1995.
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.
The statement of net assets in liquidation as of March 31, 1996, includes
approximately $7,000 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:
A Form 8-K dated March 25, 1996, was filed reporting the disposition of
Cimarron Apartments.
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: May 14, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from McCombs
Properties V Ltd 1996 First 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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 799
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 799
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 556
<TOTAL-LIABILITY-AND-EQUITY> 799
<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
<EPS-DILUTED> 0
<FN>
<F1>The Registrant has an unclassified balance sheet.
</FN>
</TABLE>
