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 March 31, 1997
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
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Exact Name of Registrant as Specified in its Charter
Georgia 56-1303554
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State or Other Jurisdiction of I.R.S. Employer Identification No.
Incorporation or Organization
3 World Financial Center, 29th Floor,
New York, NY Attn.: Andre Anderson 10285
- ------------------------------------- --------
Address of Principal Executive Offices Zip Code
(212) 526-3237
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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 March 31, At December 31,
1997 1996
Assets
Timber and timberland, at cost: $ 6,987,505 $ 6,987,505
Less accumulated depletion (2,806,428) (2,806,428)
Net timber and timberland 4,181,077 4,181,077
Cash and cash equivalents 394,442 431,448
Prepaid insurance 981 2,450
Due from related parties 10,058 10,058
Investment in joint venture 1,422,289 1,426,609
Total Assets $ 6,008,847 $ 6,051,642
Liabilities and Partners' Capital
Liabilities:
Accounts payable and accrued expenses $ 25,948 $ 14,400
Due to affiliates 127,405 136,129
Total Liabilities 153,353 150,529
Partners' Capital (Deficit):
General Partner (57,583) (57,127)
Limited Partners (40,000 units outstanding) 5,913,077 5,958,240
Total Partners' Capital 5,855,494 5,901,113
Total Liabilities and Partners' Capital $ 6,008,847 $ 6,051,642
Statement of Partners' Capital (Deficit)
For the three months ended March 31, 1997
General Limited
Partner Partners Total
Balance at December 31, 1996 $(57,127) $5,958,240 $5,901,113
Net loss (456) (45,163) (45,619)
Balance at March 31, 1997 $(57,583) $5,913,077 $5,855,494
Statements of Operations
For the three months ended March 31, 1997 1996
Income
Interest $ 5,470 $22,671
Other 825 240
Total Income 6,295 22,911
Expenses
Property operating 18,132 19,459
General and administrative 29,462 18,318
Total Expenses 47,594 37,777
Loss from operations (41,299) (14,866)
Other Loss
Loss from joint venture (4,320) (2,066)
Net Loss $(45,619) $(16,932)
Net Loss Allocated:
To the General Partner $ (456) $ (169)
To the Limited Partners (45,163) (16,763)
$(45,619) $(16,932)
Per limited partnership unit
(40,000 outstanding) $(1.13) $(.42)
Statements of Cash Flows
For the three months ended March 31, 1997 1996
Cash Flows From Operating Activities
Net loss $(45,619) $(16,932)
Adjustments to reconcile net loss to net cash
provided by (used for) operating activities:
Loss from joint venture 4,320 2,066
Increase (decrease) in cash arising from changes in
operating assets and liabilities:
Prepaid insurance 1,469 3,438
Due from related parties -- 8,250
Accounts payable and accrued expenses 11,548 9,511
Due to affiliates (8,724) 13,521
Net cash provided by (used for) operating activities (37,006) 19,854
Net increase (decrease) in cash and cash equivalents (37,006) 19,854
Cash and cash equivalents, beginning of period 431,448 1,683,209
Cash and cash equivalents, end of period $394,442 $1,703,063
Notes to the Financial Statements
The unaudited interim financial statements should be read in
conjunction with the Partnership's annual 1996 audited financial
statements within Form 10-K.
The unaudited financial statements include all normal and
reoccurring adjustments which are, in the opinion of management,
necessary to present a fair statement of financial position as of
March 31, 1997 and the results of operations and cash flows for
the three months ended March 31, 1997 and 1996 and the statement
of partners' capital (deficit) for the three months ended March
31, 1997. Results of operations for the period are not
necessarily indicative of the results to be expected for the full
year.
The following significant event has occurred subsequent to fiscal
year 1996, which requires disclosure in this interim report per
Regulation S-X, Rule 10-01, Paragraph (a)(5).
On April 18, 1997, the Partnership completed a sale of approximately
1,290 acres of the Estes Tract to the State of Florida for net
proceeds of $1,178,870 and a net gain of approximately $8,000.
Part I, Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
Liquidity and Capital Resources
At March 31, 1997, the Partnership's cash balance totaled
$394,442, compared to $431,448 at December 31, 1996. The
decrease is primarily due to the payment of property operating
and general administrative expenses in excess of interest and
other income in 1997. 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.
Accounts payable and accrued expenses totaled $25,948 at March
31, 1997, compared to $14,400 at December 31, 1996. The higher
balance in 1997 is primarily the result of higher general and
administrative expenses as discussed below in the section titled
"Results of Operations."
The Partnership currently owns the Estes Tract, a 4,657 acre site
located in northwest Florida, and a 24% interest in the joint
venture which owns the Laurel View Tract, a 1,709 acre site
located in southeast Georgia. On April 18, 1997, the Partnership
completed a sale of approximately 1,290 acres of the Estes Tract
to the State of Florida for net proceeds of $1,178,870 and a net
gain of approximately $8,000. These proceeds were added to the
Partnership's cash reserves. As previously reported, on
March 6, 1996, the Partnership entered into a purchase and sale
agreement with the State of Florida for the remaining 4,657 acres
of the Estes Tract. The sale is pending the State's final
approval, and the General Partner currently expects the sale to
close in the second quarter of 1997. However, there can be no
assurance that the sale will close as expected. Because of the
delay in closing this sale, caused by the State's lack of action,
the Partnership has retained special Florida counsel to assist
with this contract. If and when the sale closes, the
Partnership's only remaining tract of land will be its interest
in the Laurel View Tract.
The Partnership owns its interest in the Laurel View Tract as
part of a joint venture with Southern Timber Partners 2, an
affiliated partnership. The partnerships have begun actively
marketing the parcel for sale, and during 1996 engaged the
services of CB Commercial, a national commercial real estate
brokerage firm. Due to the unique nature of the Laurel View
Tract, the General Partner anticipates it may require several
months or longer to secure an acceptable price for the property.
Although the Partnership will attempt to sell the tract during
1997, there can be no assurance a sale will occur or that any
particular price will be obtained. Should a sale not be
consummated, the Partnership will continue to hold the property
and search for a purchaser.
Results of Operations
The Partnership's operations resulted in net losses of $45,619
and $16,932 for the three months ended March 31, 1997 and 1996,
respectively. The increase in net loss is primarily due to a
decrease in interest income and higher general and administrative
expenses.
Interest income totaled $5,470 for the three months ended March
31, 1997, compared to $22,671 for the corresponding period in
1996. The decrease is primarily the result of a lower cash
balance in 1997 resulting from a cash distribution to the partners
in the amount of $1,091,000 in August 1996.
Total expenses were $47,594 for the three months ended March 31,
1997, compared to $37,777 for the corresponding period in 1996.
The increase is primarily the result of higher general and
administrative expenses, partially offset by lower property
operating expenses. General and administrative expenses for the
three months ended March 31, 1997 were $29,462, compared to
$18,318 for the same period in 1996. During the 1997 period,
certain expenses incurred by an unaffiliated third party service
provider in servicing the Partnership, which were voluntarily
absorbed by affiliates of the General Partner in prior periods,
were reimbursed to the General Partner and its affiliates.
The Partnership recognized a loss from Joint Venture of $4,320
for the three months ended March 31, 1997, compared with a loss
of $2,066 for the three months ended March 31, 1996. The
increased loss from joint venture is mainly attributable to the
payment of joint venture general and administrative expenses in
the first quarter of 1997, whereas no such costs were incurred during
the first quarter of 1996.
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 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.
SOUTHERN TIMBER PARTNERS I
BY: Southern Timber Resources Corp.
General Partner
Date: May 13, 1997 BY: /s/Paul L. Abbott
Director, President
and Chief Financial Officer
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> Dec-31-1997
<PERIOD-END> Mar-31-1997
<CASH> 394,442
<SECURITIES> 0
<RECEIVABLES> 10,058
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 405,481
<PP&E> 6,987,505
<DEPRECIATION> 2,806,428
<TOTAL-ASSETS> 6,008,847
<CURRENT-LIABILITIES> 25,948
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 5,855,494
<TOTAL-LIABILITY-AND-EQUITY> 6,008,847
<SALES> 0
<TOTAL-REVENUES> 6,295
<CGS> 0
<TOTAL-COSTS> 18,132
<OTHER-EXPENSES> 29,462
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (45,619)
<INCOME-TAX> 0
<INCOME-CONTINUING> (45,619)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (45,619)
<EPS-PRIMARY> (1.13)
<EPS-DILUTED> (1.13)
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