United States Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-Q
(Mark One)
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 from ______ to ______
Commission File Number: 0-11027
SOUTHERN TIMBER PARTNERS I
Exact Name of Registrant as Specified in its Charter
Georgia 56-1303554
State or Other Jurisdiction of
Incorporation or Organization I.R.S. Employer Identification No.
3 World Financial Center, 29th Floor,
New York, NY Attn.: Andre Anderson 10285
Address of Principal Executive Offices Zip Code
(212) 526-3237
Registrant's Telephone Number, Including Area Code
Indicate by check mark whether the Registrant (1) has 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 ____
Balance Sheets At June 30, At December 31,
1996 1995
Assets
Timber and timberland, at cost: $ 6,987,505 $ 6,987,505
Less accumulated depletion (2,806,428) (2,806,428)
4,181,077 4,181,077
Cash and cash equivalents 1,608,574 1,683,209
Prepaid insurance 5,388 4,813
Due from related parties 0 8,250
Investment in joint venture 1,431,548 1,435,654
Total Assets $ 7,226,587 $ 7,313,003
Liabilities and Partners' Capital
Liabilities:
Accounts payable and accrued expenses $ 28,100 $ 23,854
Due to affiliates 135,779 201,624
Total liabilities 163,879 225,478
Partners' Capital (Deficit):
General Partner (45,511) (45,263)
Limited Partners (40,000 units outstanding) 7,108,219 7,132,788
Total Partners' Capital 7,062,708 7,087,525
Total Liabilities and Partners' Capital $ 7,226,587 $ 7,313,003
Statement of Partners' Capital (Deficit) Limited General
For the six months ended June 30, 1996 Partners Partner Total
Balance at December 31, 1995 $7,132,788 $(45,263) $7,087,525
Net loss (24,569) (248) (24,817)
Balance at June 30, 1996 $7,108,219 $(45,511) $7,062,708
Statements of Operations
Three months Six months
ended June 30, ended June 30,
1996 1995 1996 1995
Income
Loss on sales of timberland $ 0 $ (8,648) $ 0 $ (8,648)
Interest 22,210 37,985 44,881 68,483
Other 2,570 460 2,810 1,110
Total income 24,780 29,797 47,691 60,945
Expenses
Property operating 17,979 22,072 37,438 44,363
General and administrative 12,646 12,014 30,964 21,722
Total expenses 30,625 34,086 68,402 66,085
Loss from operations (5,845) (4,289) (20,711) (5,140)
Other Income (Loss)
Income (loss) from joint venture (2,040) 1,917 (4,106) 6,953
Net Income (Loss) $ (7,885) $ (2,372) $ (24,817) $ 1,813
Net Income (Loss) Allocated:
To the General Partner $ (79) $ (24) $ (248) $ 18
To the Limited Partners (7,806) (2,348) (24,569) 1,795
$ (7,885) $ (2,372) $ (24,817) $ 1,813
Per limited partnership unit
(40,000 outstanding) $(.20) $(.06) $(.61) $.04
Statements of Cash Flows
For the six months ended June 30, 1996 1995
Cash Flows From Operating Activities
Net income (loss) $ (24,817) $ 1,813
Adjustments to reconcile net income (loss) to net cash
provided by (used for) operating activities:
Loss on sales of timberland 0 8,648
(Income) loss from joint venture 4,106 (6,953)
Increase (decrease) in cash arising from changes in
operating assets and liabilities:
Accounts receivable 0 515,767
Prepaid insurance (575) (11,424)
Due from related parties 8,250 (421)
Accounts payable and accrued expenses 4,246 (7,545)
Due to affiliates (65,845) 30,309
Net cash provided by (used for) operating activities (74,635) 530,194
Cash Flows From Investing Activities
Proceeds from land sales 0 717,655
Net cash provided by investing activities 0 717,655
Cash Flows From Financing Activities
Distributions 0 (1,533,726)
Net cash used for financing activities 0 (1,533,726)
Net decrease in cash and cash equivalents (74,635) (285,877)
Cash and cash equivalents, beginning of period 1,683,209 1,428,986
Cash and cash equivalents, end of period $1,608,574 $1,143,109
Notes to the Financial Statements
The unaudited interim financial statements should be read in
conjunction with the Partnership's annual 1995 audited financial
statements within Form 10-K.
The unaudited financial statements include all adjustments which
are, in the opinion of management, necessary to present a fair
statement of financial position as of June 30, 1996 and the
results of operations for the three and six months ended June 30,
1996 and 1995, the statements of cash flows for the six months
ended June 30, 1996 and 1995 and the statement of changes in
partners' capital (deficit) for the six months ended June 30,
1996. Results of operations for the period are not necessarily
indicative of the results to be expected for the full year.
No significant events have occurred subsequent to fiscal year
1995, and no material contingencies exist which would require
disclosure in this interim report per Regulation S-X, Rule 10-01,
Paragraph (a)(5).
Part I, Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
Liquidity and Capital Resources
At June 30, 1996, the Partnership's cash balance totaled
$1,608,574, compared to $1,683,209 at December 31, 1995. The
decrease is primarily due to the payment of accrued management
fees. The Partnership's cash balance, along with funds generated
from future sales of timber and timberland are expected to
provide sufficient liquidity to enable the Partnership to meet
its operating expenses. On August 9, 1996, the Partnership paid
a cash distribution to limited partners in the amount of
$1,080,090 or $27.00 per Unit. The distribution was paid out of
the Partnership's cash reserves to Unitholders of record on July
1, 1996. The General Partner will continue to evaluate the
Partnership's cash needs to determine if and when future
distributions should be made.
Accounts payable and accrued expenses at June 30, 1996 were
$28,100, compared to $23,854 at December 31, 1995. The increase
is primarily attributable to an accrual in 1996 for real estate
taxes and the timing of payment for insurance costs.
Due to affiliates was $135,779 at June 30, 1996, compared to
$201,624 at December 31, 1995. The decrease is primarily
attributable to the payment of accrued management fees.
The Partnership currently owns approximately 5,947 acres of
timberland on the Estes tract outright and a 24% share in the
Laurel View tract, a 1,709 acre tract located near Savannah,
Georgia. While the Laurel View tract could be sold as
timberland, its greater value would be realized if sold as a
development site due to its coastal location and close proximity
to major interstate highways. It is expected that the General
Partner will begin actively marketing the tract during 1996.
On February 6, 1996, the Partnership executed a purchase and sale
agreement with the State of Florida for a sale of 1,290 acres of
the Estes Tract. On March 6, 1996, the Partnership entered into
a second purchase and sale agreement with the State of Florida
for a sale of the remainder of the Estes Tract. Although the
statutory due diligence periods for both sales have expired, the
purchase and sale agreements remain subject to the approval of
both the State of Florida and the General Partner. It is
uncertain when approval from the State of Florida will be
received. Since the State of Florida can rescind either offer to
purchase with no further obligation at any time, there can be no
assurance either sale will occur.
Results of Operations
The Partnership's operations resulted in net losses of $7,885 and
$24,817 for the three and six months ended June 30, 1996,
respectively, as compared to a net loss of $2,372 and net income
of $1,813 for the corresponding periods in 1995. The higher net
loss for the three-month period is mainly attributable to a
decrease in interest income. The change from net income in the
first six months of 1995 to net loss during the same period in
1996 is primarily attributable to a decrease in interest income
and the recognition of loss from joint venture operations in 1996
as opposed to income from joint venture operations in 1995.
Interest income totaled $22,210 and $44,881 for the three and six
months ended June 30, 1996, respectively, compared to $37,985 and
$68,483 for the corresponding periods in 1995. The decrease for
both periods is primarily the result of a lower average cash
balance in 1996.
Property operating expenses were $17,979 and $37,438 for the
three and six months ended June 30, 1996, compared to $22,072 and
$44,363 for the corresponding periods in 1995. The decrease is
due to lower management fees and lower real estate tax expenses
in 1996.
General and administrative expenses for the three and six months
ended June 30, 1996 were $12,646 and $30,964, respectively,
compared to $12,014 and $21,722 for the same periods in 1995.
The increase for the six-month period is primarily due to higher
legal fees.
The Partnership recognized losses from Joint Venture of $2,040
and $4,106 for the three and six months ended June 30, 1996,
compared with income of $1,917 and $6,953 for the three and six
months ended June 30, 1995. The Joint Venture income in 1995 is
attributable to income from timber sales recognized in the first
half of 1995 in excess of ordinary operating expenses. The joint
venture losses in 1996 are attributable to a lack of timber sales
and the recording of ordinary operating expenses.
Part II Other Information
Items 1-5 Not applicable.
Item 6 Exhibits and reports on Form 8-K.
(a) Exhibits -
(27) Financial Data Schedule
(b) Reports on Form 8-K - No reports on Form 8-K
were filed during the quarter ended June 30, 1996.
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.
SOUTHERN TIMBER PARTNERS I
BY: Southern Timber Resources Corp.
General Partner
Date: August 12, 1996 BY: /s/ Paul L. Abbott
Director and Chief Executive Officer
Date: August 12, 1996 BY: /s/ Robert J. Hellman
President and Chief Financial Officer
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<S> <C>
<PERIOD-TYPE> 6-mos
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-END> Jun-30-1996
<CASH> 1,608,574
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
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<PP&E> 6,987,505
<DEPRECIATION> 2,806,428
<TOTAL-ASSETS> 7,226,587
<CURRENT-LIABILITIES> 163,879
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0
0
<OTHER-SE> 7,062,708
<TOTAL-LIABILITY-AND-EQUITY> 7,226,587
<SALES> 0
<TOTAL-REVENUES> 47,691
<CGS> 0
<TOTAL-COSTS> 37,438
<OTHER-EXPENSES> 30,964
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (24,817)
<INCOME-TAX> 0
<INCOME-CONTINUING> (24,817)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (24,817)
<EPS-PRIMARY> (.61)
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