SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of
The Securities Exchange Act of 1934
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For the Period ended June 30, 1995
Commission File 0-11512
SUPER 8 ECONOMY LODGING IV, LTD
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(Exact name of registrant as specified in its charter
CALIFORNIA 94 - 2827163
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2030 J Street
Sacramento, California 95814
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Address of principal executive offices Zip Code
Registrant's telephone number,
including area code (916) 442 - 9183
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 XX No
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SUPER 8 ECONOMY LODGING IV, LTD.
(A California Limited Partnership)
FINANCIAL STATEMENTS
JUNE 30, 1995 AND 1994
<PAGE>
SUPER 8 ECONOMY LODGING IV, LTD.
(A California Limited Partnership)
INDEX
Financial Statements: PAGE
Balance Sheet - June 30, 1995 and September 30, 1994 2
Statement of Operations - Nine Months Ended
June 30, 1995 and 1994 3
Statement of Changes in Partners' Equity -
Nine Months Ended June 30, 1995 and 1994 4
Statement of Cash Flows - Nine Months Ended
June 30, 1995 and 1994 5
Notes to Financial Statements 6
Management Discussion and Analysis 7 - 8
Other Information and Signatures 9 - 10
<PAGE>
SUPER 8 ECONOMY LODGING IV, LTD.
(A California Limited Partnership)
BALANCE SHEET
JUNE 30, 1995 AND SEPTEMBER 30 1994
6/30/95 9/30/94
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ASSETS
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Current Assets:
Cash and temporary investments $ 704,307 $ 763,487
Accounts receivable 67,704 25,087
Prepaid expenses 11,479 11,459
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Total Current Assets 783,490 800,033
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Property and Equipment:
Land 799,311 799,311
Buildings 2,226,531 2,226,531
Furniture and equipment 537,983 504,918
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3,563,825 3,530,760
Accumulated depreciation and amortization (1,654,108) (1,577,026)
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Property and Equipment, Net 1,909,717 1,953,734
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Other assets 38,097 33,091
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Total Assets $2,731,304 $2,786,858
========== ==========
LIABILITIES AND PARTNERS' EQUITY
--------------------------------
Current Liabilities:
Accounts payable and accrued liabilities $ 99,195 $ 96,266
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Total Liabilities 99,195 96,266
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Partners' Equity:
General Partners (18,982) (22,492)
Limited Partners 2,651,091 2,713,084
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Total Partners' Equity 2,632,109 2,690,592
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Total Liabilities and Partners' Equity $2,731,304 $2,786,858
========== ==========
The accompanying notes are an integral part of the financial statements.
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<PAGE>
SUPER 8 ECONOMY LODGING IV, LTD.
(A California Limited Partnership)
STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED JUNE 30, 1995 AND 1994
Three Nine Three Nine
Months Months Months Months
Ended Ended Ended Ended
6/30/95 6/30/95 6/30/94 6/30/94
---------- ----------- ---------- ----------
Income:
Guest room $ 385,470 $1,019,967 $ 335,997 $ 964,033
Telephone and vending 9,420 26,087 9,682 27,409
Interest 5,759 16,045 4,452 14,128
Other 750 2,878 486 3,440
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Total Income 401,399 1,064,977 350,617 1,009,010
---------- ----------- ---------- ----------
Expenses:
Motel operating expenses
(Note 2) 192,422 553,879 186,434 564,800
General and administrative 5,355 28,705 4,624 28,123
Depreciation and
amortization 26,302 78,935 26,438 79,343
Property management fees 19,756 52,441 17,299 49,528
---------- ---------- ---------- ----------
Total Expenses 243,835 713,960 234,795 721,794
---------- ---------- ---------- ----------
Net Income (Loss) $ 157,564 $ 351,017 $ 115,822 $ 287,216
========== ========== ========== ==========
Net Income (Loss) Allocable
to General Partners $1,576 $3,510 $1,158 $2,872
========== ========== ========== ==========
Net Income (Loss) Allocable
to Limited Partners $155,988 $347,507 $114,664 $284,344
========== ========== ========== ==========
Net Income (Loss) per
Partnership Unit $15.76 $35.10 $11.58 $28.72
========== ========== ========== ==========
Distributions to Limited
Partners per Partnership
Unit $13.65 $40.95 $12.50 $35.00
========== ========== ========== ==========
The accompanying notes are an integral part of the financial statements.
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<PAGE>
SUPER 8 ECONOMY LODGING IV, LTD.
(A California Limited Partnership)
STATEMENT OF CHANGES IN PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED JUNE 30, 1995 AND 1994
6/30/95 6/30/94
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General Partners:
Balance, beginning of year $ (22,492) $ (26,682)
Net income (loss) 3,510 2,872
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Balance, End of period (18,982) (23,810)
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Limited Partners:
Balance, beginning of year 2,713,084 2,784,765
Net income (loss) 347,507 284,344
Distributions to Limited Partners (409,500) (350,000)
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Balance, End of Period 2,651,091 2,719,109
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Total Partners' Equity $2,632,109 $2,695,299
========== ==========
The accompanying notes are an integral part of the financial statements.
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<PAGE>
SUPER 8 ECONOMY LODGING IV, LTD.
(A California Limited Partnership)
STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED JUNE 30, 1995 AND 1994
6/30/95 6/30/94
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Cash Flows from Operating Activities:
Received from motel revenues $1,006,360 $ 951,294
Expended for motel operations and
general and administrative expenses (637,122) (664,989)
Interest received 16,000 13,799
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Net Cash Provided (Used) by Operating Activities 385,238 300,104
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Cash Flows from Investing Activities:
Purchases of property and equipment (34,918) -
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Net Cash Provided (Used) by Investing Activities (34,918) -
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Cash Flows from Financing Activities:
Distributions to limited partners (409,500) (350,000)
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Net Cash Provided (Used) by Financing Activities (409,500) (350,000)
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Net Increase (Decrease) in Cash and Temporary
Investments (59,180) (49,896)
Cash and Temporary Investments:
Beginning of period 763,487 761,848
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End of period $ 704,307 $ 711,952
========== ==========
Reconciliation of Net Income (Loss) to Net Cash Provided (Used) by
Operating Activities:
Net Income (Loss) $ 351,017 $ 287,216
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Adjustments to reconcile net income to
net cash used by operating activities:
Depreciation and amortization 78,935 79,343
(Increase) decrease in accounts receivable (42,617) (43,918)
(Increase) decrease in prepaid expenses (20) (935)
(Increase) decrease in other assets (5,006) -
Increase (decrease) in accounts payable 2,929 (21,602)
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Total Adjustments 34,221 12,888
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Net Cash Provided (Used) by Operating Activities $ 385,238 $ 300,104
=========== ==========
The accompanying notes are an integral part of the financial statements.
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<PAGE>
SUPER 8 ECONOMY LODGING IV, LTD.
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 30, 1995
Note 1:
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The attached interim financial statements include all adjustments which are,
in the opinion of management, necessary to a fair statement of the results
for the period presented.
Users of these interim financial statements should refer to the audited
financial statements for the year ended September 30, 1994 for a complete
disclosure of significant accounting policies and practices and other detail
necessary for a fair presentation of the financial statements.
In accordance with the partnership agreement, the following information is
presented related to fees paid to the General Partners or affiliates for the
period.
Property Management Fees $ 52,441
Franchise Fees $ 20,407
Partnership management fees and subordinated incentive distributions are
contingent in nature and none have been accrued or paid during the current
period.
Note 2:
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The following table summarizes the major components of motel operating
expenses for the following periods:
Three Nine Three Nine
Months Months Months Months
Ended Ended Ended Ended
6/30/95 6/30/95 6/30/94 6/30/94
-------- -------- -------- --------
Salaries and related costs $ 72,624 $ 210,271 $ 89,558 $ 215,714
Utilities 19,258 48,007 15,489 50,236
Allocated costs, mainly
indirect salaries 22,276 66,800 20,330 64,424
Other operating expenses 78,264 228,801 61,057 234,426
-------- -------- -------- --------
Total Motel Operating Expenses $ 192,422 $ 553,879 $ 186,434 $ 564,800
======== ======== ======== ========
The following additional material contingencies are required to be stated in
the interim reports under federal securities law: None.
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<PAGE>
SUPER 8 ECONOMY LODGING IV, LTD.
(A California Limited Partnership)
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
JUNE 30, 1995
LIQUIDITY AND CAPITAL RESOURCES
The Partnership's current assets of $783,490 exceeded its
current liabilities of $99,195 providing an operating reserve of
$684,295, greater than the $455,000 target set by the General
Partners. The General Partners last increased the distribution
with the August 15, 1994 distribution. They have decided to
defer any further increase in distribution until after the
quarter to end on December 31, 1995.
In the unlikely event that the Partnership's reserves do not
meet operating needs, the Partnership's Pleasanton, California
motel will provide substantial collateral against additional
debt.
The Partnership has no material commitments for capital
expenditures. The Partnership's guideline for replacements and
renovation expenditures is approximately 3% of room revenues.
Applicable expenditures during the first nine months of the
fiscal year which will end on September 30, 1995 were $50,813
(of which $34,918 was capitalized) or 5.0% of room revenues.
Annual expenditures of this type are not expected to exceed the
General Partners' 3% guideline.
NEW ACCOUNTING STANDARDS
SFAS No. 121, Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets to be Disposed OF, requires
the Partnership to disclose information about potential
impairment to the value of long-lived assets. The Partnership
is not required to adopt and does not currently plan to adopt
SFAS No. 121 until its fiscal year ending September 30, 1997.
The Partnership does not expect to make any disclosures about
impairment of long-lived assets under SFAS No. 121.
RESULTS OF OPERATIONS
The following is a comparison of operating results for the
periods ended June 30, 1995 and June 30, 1994.
1995 1994
Occupancy
Three months ended June 30 80.2% 72.3%
Nine months ended June 30 72.2% 69.5%
Average Room Rate
Three months ended June 30 $51.80 $50.06
Nine months ended June 30 $50.71 $49.84
-7-
<PAGE>
(A California Limited Partnership)
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
(Continued)
JUNE 30, 1995
Total revenues increased $55,967( 5.6%) for the nine months
ended June 30, 1995 as compared to the corresponding period of
the preceding fiscal year. Guest room revenue increased $55,934
(5.8%) for the current period due primarily to an increase in
the occupancy rate. The property derived its increase in
occupancy in all market segments. Improved market conditions
allowed the Partnership to charge higher room rates in the
corporate, leisure, government and group market segments.
Total expenditures declined $7,834 or 1.1% as compared to the
corresponding period of the previous fiscal year. Expenditures
declined despite an occupancy increase due to an aggressive cost
control program.
FUTURE TRENDS
The General Partners expect the Pleasanton motel to continue
its improved performance if the current improvement in the
general economic climate continues.
In the opinion of management, these financial statements
reflect all adjustments which were necessary to a fair statement
of results for the interim periods presented. All adjustments
are of a normal recurring nature.
-8-
<PAGE>
PART II. OTHER INFORMATION
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Item 1. Legal Proceedings
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None
Item 2. Changes in Securities
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None
Item 3. Defaults upon Senior Securities
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None
Item 4. Submission of Matters
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None
Item 5. Other Information
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None
Item 6. Exhibits and Reports on Form 8-K
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None
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<PAGE>
Pursuant to the requirements of the Securities and Exchange
Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
SUPER 8 ECONOMY LODGING IV, LTD
8-10-95 By /S/ David P. Grotewohl
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Date David P. Grotewohl,
President of Grotewohl
Management Services, Inc.,
Managing General Partner
8-10-95 By /S/ David P. Grotewohl
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Date David P. Grotewohl,
Chief Financial Officer
-10-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-START> OCT-01-1994
<PERIOD-END> JUN-30-1995
<CASH> 704,307
<SECURITIES> 0
<RECEIVABLES> 67,704
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 783,490
<PP&E> 3,563,825
<DEPRECIATION> 1,654,108
<TOTAL-ASSETS> 2,731,304
<CURRENT-LIABILITIES> 99,195
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 2,632,109
<TOTAL-LIABILITY-AND-EQUITY> 2,731,304
<SALES> 1,046,054
<TOTAL-REVENUES> 1,064,977
<CGS> 553,879
<TOTAL-COSTS> 553,879
<OTHER-EXPENSES> 160,081
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 351,017
<INCOME-TAX> 0
<INCOME-CONTINUING> 351,017
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 351,017
<EPS-PRIMARY> 35.10
<EPS-DILUTED> 35.10
</TABLE>
