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<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
[ 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 No. 0-7798
--------------
FIRST WILKOW VENTURE
- -------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
ILLINOIS 36-6169280
- ------------------------------- --------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
180 NORTH MICHIGAN AVENUE, CHICAGO, ILLINOIS 60601
- -------------------------------------------- ----------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (312) 726-9622
----------------------
NOT APPLICABLE
- -------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last
report.
Indicate by check mark whether the registrant (1) has filed all
reports to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months and (2) has been
subject to such filing requirements for the past 90 days.
YES X NO
----- -----
<PAGE> 2
FIRST WILKOW VENTURE
(A LIMITED PARTNERSHIP)
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
March 31,
1997 December 31,
(Unaudited) 1996
----------- -----------
<S> <C> <C>
ASSETS
------
REAL ESTATE AND INVESTMENTS IN REAL ESTATE PARTNERSHIPS
- -------------------------------------------------------
Real Estate:
Land $6,230,711 $6,230,711
Buildings and Improvements 45,814,670 45,672,807
Fixtures and Equipment 116,955 116,955
----------- -----------
Total 52,162,336 52,020,473
Less-Accumulated Depreciation 16,893,812 16,543,394
----------- -----------
Net Real Estate 35,268,524 35,477,079
Investment in Real Estate Partnerships 4,477,767 5,180,049
----------- -----------
Total 39,746,291 40,657,128
----------- -----------
LOANS RECEIVABLE 929,113 1,224,274
- ---------------- ----------- -----------
OTHER ASSETS
- ------------
Cash 280,744 466,870
Certificates of Deposit 1,290,000 840,000
Receivable 691,981 702,376
Prepaid Expenses 2,465 -
Deposits 409,332 715,053
Deferred Charges 925,717 988,991
----------- -----------
Total 3,600,239 3,713,290
----------- -----------
TOTAL ASSETS $44,275,643 $45,594,692
------------ =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
MORTGAGES AND LOANS PAYABLE
- ---------------------------
Mortgages Payable $31,056,446 $31,339,400
Notes Payable 790,359 829,488
----------- -----------
Total 31,846,805 32,168,888
----------- -----------
OTHER LIABILITIES
- -----------------
Accounts Payable and Accrued Expenses 132,035 182,975
Accrued Property Taxes 1,884,627 2,328,926
Deferred State Income Taxes 200,000 200,000
Security Deposits and Prepaid Rent 394,863 404,507
Accrued Interest 66,839 69,110
----------- -----------
Total 2,678,364 3,185,518
----------- -----------
MINORITY INTEREST 1,439,556 1,449,774
- ----------------- ----------- -----------
PARTNERS' CAPITAL (178,972 units authorized and issued) 8,310,918 8,790,512
- ----------------- ----------- -----------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $44,275,643 $45,594,692
--------------------------------------- =========== ===========
</TABLE>
Note: Balance Sheet at 12/31/96 has been taken from the audited financial
statements at that date.
-2-
<PAGE> 3
FIRST WILKOW VENTURE
CONSOLIDATED STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months
Ended March 31,
---------------------------
1997 1996
----------- -----------
<S> <C> <C>
REVENUES
- --------
Rental Income $2,404,517 $2,231,601
Interest Income 44,750 32,884
Other Income 18,045 3,615
----------- -----------
2,467,312 2,268,100
----------- -----------
PARTNERSHIP INVESTMENTS' INCOME (LOSS)
- --------------------------------------
Share of Net Income (Loss) 91,909 55,578
----------- -----------
91,909 55,578
----------- -----------
EXPENSES
- --------
Operating Expenses 758,392 667,546
Real Estate Taxes 653,972 606,072
Depreciation and Amortization 436,573 456,400
Interest Expense 697,656 732,713
General and Administrative 116,946 162,818
----------- -----------
2,663,539 2,625,549
----------- -----------
INCOME (LOSS) BEFORE
- --------------------
MINORITY INTEREST
-----------------
AND TAXES (104,318) (301,871)
---------
MINORITY INTEREST IN
- --------------------
SUBSIDIARIES NET LOSS (17,332) 87,415
---------------------
PROVISION FOR STATE
- -------------------
INCOME TAXES 0 0
------------ ----------- -----------
NET INCOME (LOSS) ($121,650) ($214,456)
- ----------------- =========== ===========
EARNINGS PER UNIT BASED
ON 178,972 UNITS OUTSTANDING ($0.68) ($1.20)
=========== ===========
DISTRIBUTION PER UNIT $2.00 $0.00
=========== ===========
</TABLE>
NOTE 1: No provision for Federal Income Taxes has been made since First
Wilkow Venture is a partnership and the partners report their pro-rata
share of income or loss individually.
-3-
<PAGE> 4
FIRST WILKOW VENTURE
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended March 31,
------------------------------
1997 1996
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
- ------------------------------------
Net Income (Loss) ($121,650) ($214,456)
Non Cash Items Included in Net Income
Loss on Sale of Real Estate - 271,076
Minority Interest in Subsidiaries Net Income/Loss 17,332 (87,415)
Depreciation and Amortization 436,573 456,400
Amortization of Debt Forgiveness Income (18,044) (276,506)
(Decrease) Increase in Net Payable and Accrued Expense (193,503) (420,193)
Share of Parntership's Net (Income) Loss (91,909) (55,578)
----------- -----------
Total Cash Provided (Used) from Operating Activities 150,449 (112,216)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
- ------------------------------------
Cash Provided from Sale of Real Estate - 8,197,646
Partnership Investment Draws 797,628 45,069
(Increase) in Land and Buildings (141,863) (65,839)
Investment in Partnerships (3,438) (29,005)
(Decrease) Increase in Minority Interest (27,550) (27,550)
(Decrease) Increase in Mortgage and Notes Payable (189,129) (2,655,333)
(Increase) Decrease in Mortgage and Notes Receivable 295,162 295,505
Investment in Deferred Charges (22,881) (26,493)
----------- -----------
Total Cash Provided (Used) from Investing Activites 707,929 5,734,000
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
- ------------------------------------
Mortgage Principal Payments Upon Sale of Real Estate - (5,185,580)
Cash Distribution to Partners (357,944) -
Mortgage Principal Payments (114,910) (94,014)
----------- -----------
Total Cash Provided (Used) from Financing Activities (472,854) (5,279,594)
----------- -----------
INCREASE (DECREASE) IN CASH AND EQUIVALENTS 263,874 127,734
CASH AND EQUIVALENTS - BEGINNING OF PERIOD 1,306,870 491,850
- ------------------------------------------ ----------- -----------
CASH AND EQUIVALENTS - END OF PERIOD $1,570,744 $619,584
- ------------------------------------ =========== ===========
</TABLE>
-4-
<PAGE> 5
FIRST WILKOW VENTURE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1997
------------------------------------------
Accounting Policies
The financial statements have been prepared in accordance with generally
accepted accounting principles. Under this method of accounting, revenues are
recorded when earned and expenses are recorded when incurred.
Reference is made to the Partnership's annual report for the year ended
December 31, 1996, for a description of other accounting policies and
additional details for the Partnership's financial condition, results of
operations, changes in Partners' capital and statement of cash flows for the
year then ended. The details provided in the notes thereto have not changed as
a result of normal transactions in the interim.
-5-
<PAGE> 6
FIRST WILKOW VENTURE
FORM 10-Q
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
MARCH 31, 1997
Overview
Reference is made to partnership's annual report for the year ended
December 31, 1996 for a discussion of the partnership's business.
In January 1997, the Partnership made a distribution in the amount of
$357,944, or $2 per unit.
In January 1997, the property known as 2221 Camden Court Office Building
was sold for $11,750,000, resulting in repayment of Partnership loans and an
equity distribution of $690,360 to the Partnership. A provision for loss in
book value of $154,000, equal to the estimated loss to the Partnership on the
disposition of the investment was recognized in 1996.
On February 12, 1997, Sun Pointe Place Limited Partnership sold a 140-unit
apartment complex it developed and owned in Largo, Florida, for $2,600,000. M
& J/Largo Limited Partnership, which owns a 91.12% interest, exercised its
option to withdraw as a limited partner of Sun Pointe Place Limited Partnership
simultaneously with the sale of the property, entitling it to all the available
sale proceeds. The Partnership received an equity distribution from M &
J/Largo Limited Partnership of $615,384. A provision for loss in book value
of $119,000, equal to the estimated loss to the Partnership on the disposition
of the investment, was recognized in 1996.
-6-
<PAGE> 7
REMARKS
In the opinion of the General Partners, the financial information of this
report includes all adjustments, including estimated provisions for items
normally settled at year end, and is a fair statement of the results for the
interim ended March 31, 1996 and 1997.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
FIRST WILKOW VENTURE
By: Marc R. Wilkow
------------------------------------
Marc R. Wilkow, General Partner and
President of M & J Wilkow, Ltd., its
Managing Agent
DATED: May 12, 1997
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant, in the capacities indicated, on May 12, 1997.
Clifton J. Wilkow
--------------------------------------
Clifton J. Wilkow, General Partner and
Executive Vice President of
M & J Wilkow, Ltd.
Thomas Harrigan
--------------------------------------
Thomas Harrigan, Vice President of
M & J Wilkow, Ltd.
-7-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<CASH> 1,306,870
<SECURITIES> 0
<RECEIVABLES> 929,113
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,674,522
<PP&E> 52,162,336
<DEPRECIATION> 16,893,812
<TOTAL-ASSETS> 44,275,643
<CURRENT-LIABILITIES> 2,016,662
<BONDS> 31,846,805
0
0
<COMMON> 0
<OTHER-SE> 8,310,918
<TOTAL-LIABILITY-AND-EQUITY> 44,275,643
<SALES> 2,404,517
<TOTAL-REVENUES> 2,467,312
<CGS> 0
<TOTAL-COSTS> 758,392
<OTHER-EXPENSES> 770,918
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 697,656
<INCOME-PRETAX> (121,650)
<INCOME-TAX> 0
<INCOME-CONTINUING> (121,650)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (121,650)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
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