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 March 31, 1996
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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<PAGE>
SUPER 8 ECONOMY LODGING IV, LTD.
(A California Limited Partnership)
FINANCIAL STATEMENTS
MARCH 31, 1996 AND 1995
<PAGE>
SUPER 8 ECONOMY LODGING IV, LTD.
(A California Limited Partnership)
INDEX
Financial Statements: PAGE
Balance Sheet - March 31, 1996 and September 30, 1995 2
Statement of Operations - Six Months Ended
March 31, 1996 and 1995 3
Statement of Changes in Partners' Equity -
Six Months Ended March 31, 1996 and 1995 4
Statement of Cash Flows - Six Months Ended
March 31, 1996 and 1995 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
MARCH 31, 1996 AND SEPTEMBER 30,1995
3/31/96 9/30/95
---------- ----------
ASSETS
Current Assets:
Cash and temporary investments $ 784,403 $ 794,899
Accounts receivable 23,539 22,343
Prepaid expenses 1,396 11,934
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Total Current Assets 809,338 829,176
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Property and Equipment:
Land 799,311 799,311
Buildings 2,226,531 2,226,531
Furniture and equipment 544,185 548,367
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3,570,027 3574,209
Accumulated depreciation and amortization (1,697,483) (1,672,013)
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Property and Equipment, Net 1,872,544 1,902,196
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Other assets 38,097 38,097
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Total Assets $ 2,719,979 $ 2,769,469
========== ==========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 77,832 $ 111,441
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Total Liabilities 77,832 111,441
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Partners' Equity:
General Partners (14,787) (17,358)
Limited Partners 2,656,934 2,675,386
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Total Partners' Equity 2,642,147 2,658,028
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Total Liabilities and Partners' Equity $ 2,719,979 $ 2,769,469
========== ==========
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 SIX MONTHS ENDED MARCH 31, 1996 AND 1995
Three Six Three Six
Months Months Months Months
Ended Ended Ended Ended
3/31/96 3/31/96 3/31/95 3/31/95
--------- --------- --------- ---------
Income:
Guest room $ 351,052 $ 714,230 $ 311,143 $ 634,497
Telephone and vending 10,906 19,728 8,171 16,667
Interest 7,540 13,613 5,396 10,285
Other 894 2,158 1,140 2,128
--------- --------- --------- ---------
Total Income 370,392 749,729 325,850 663,577
--------- --------- --------- ---------
Expenses:
Motel operating expenses
(Note 2) 186,105 377,023 170,783 361,457
General and administrative 5,607 22,033 6,654 23,351
Depreciation and amortization 28,863 56,748 26,538 52,633
Property management fees 18,197 36,806 16,010 32,685
--------- --------- --------- ---------
Total Expenses 238,772 492,610 219,985 470,126
--------- --------- --------- ---------
Net Income (Loss) $ 131,620 $ 257,119 $ 105,865 $ 193,451
========= ========= ========= =========
Net Income (Loss) Allocable to
General Partners $1,316 $2,571 $1,059 $1,935
========= ========= ========= =========
Net Income (Loss) Allocable to
Limited Partners $130,304 $254,548 $104,806 $191,516
========= ========= ========= =========
Net Income (Loss) per
Partner Unit $13.03 $25.45 $10.48 $19.15
========= ========= ========= =========
Distributions to Limited
Partners per Partnership Unit $13.65 $27.30 $13.65 $27.30
========= ========= ========= =========
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 SIX MONTHS ENDED MARCH 31, 1996 AND 1995
3/31/96 3/31/95
General Partners: --------- ---------
Balance, beginning of year $ (17,358) $ (22,492)
Net income (loss) 2,571 1,935
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Balance, End of period (14,787) (20,557)
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Limited Partners:
Balance, beginning of year 2,675,386 2,713,084
Net income (loss) 254,548 191,516
Distributions to Limited Partners (273,000) (273,000)
--------- ---------
Balance, End of Period 2,656,934 2,631,600
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Total Partners' Equity $2,642,147 $2,611,043
========= =========
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 SIX MONTHS ENDED MARCH 31, 1996 AND 1995
3/31/96 3/31/95
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Cash Flows from Operating Activities:
Received from motel revenues $ 734,944 $ 633,557
Expended for motel operations and
general and administrative expenses (458,933) (405,423)
Interest received 13,589 10,842
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Net Cash Provided (Used) by Operating Activities 289,600 238,976
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Cash Flows from Investing Activities:
Purchases of property and equipment (27,096) (21,354)
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Net Cash Provided (Used) by Investing Activities (27,096) (21,354)
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Cash Flows from Financing Activities:
Distributions to limited partners (273,000) (273,000)
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Net Cash Provided (Used) by Financing Activities (273,000) (273,000)
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Net Increase (Decrease) in Cash and
Temporary Investments (10,496) (55,378)
Cash and Temporary Investments:
Beginning of period 794,899 763,487
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End of period $ 784,403 $ 708,109
========= =========
Reconciliation of Net Income (Loss) to Net Cash Provided (Used) by
Operating Activities:
Net Income (Loss) $ 257,119 $ 193,451
--------- ---------
Adjustments to reconcile net income to
net cash used by operating activities:
Depreciation and amortization 56,748 52,633
(Increase) decrease in accounts receivable (1,196) (19,179)
(Increase) decrease in prepaid expenses 10,538 10,154
Increase (decrease) in accounts payable (33,609) 1,917
--------- ---------
Total Adjustments 32,481 45,525
--------- ---------
Net Cash Provided (Used) by Operating A $ 289,600 $ 238,976
========= =========
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
March 31, 1996
Note 1:
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 December 31, 1995 for a complete
disclosure of significant accounting 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 $ 36,806
Franchise Fees $ 14,297
Partnership management fees and subordinated incentive distributions are
contingent in nature and none have been accrued or paid during the current
period.
Note 2:
The following table summarizes the major components of motel operating
expenses for the following periods:
Three Six Three Six
Months Months Months Months
Ended Ended Ended Ended
3/31/96 3/31/96 3/31/95 3/31/95
--------- --------- --------- ---------
Salaries and related costs $ 78,156 $ 149,860 $ 65,506 $ 137,647
Utilities 13,122 29,542 13,988 31,575
Allocated costs, mainly indir 22,909 47,780 21,131 44,525
Replacements and renovations 428 5,517 3,742 9,883
Other operating expenses 71,490 144,324 66,416 137,827
--------- --------- --------- ---------
Total Motel Operating Expense $ 186,105 $ 377,023 $ 170,783 $ 361,457
========= ========= ========= =========
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
MARCH 31, 1996
LIQUIDITY AND CAPITAL RESOURCES
The Partnership's current assets of $809,338 exceeded its current
liabilities of $77,832 providing an operating reserve of $731,506, which is
greater than the $455,000 target set by the General Partners.
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
six months of the fiscal year which will end on September 30, 1996, were $32,613
(of which $27,096 was capitalized) or 4.6% of room revenues. Expenditures of
this type are not expected to exceed the General Partners' 3% guideline on a
yearly basis.
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 six month
periods ended March 31, 1996 and March 31, 1995.
Total revenues increased $86,152 or 13.0% for the six months ended March
31, 1996 as compared to the corresponding period of the preceding fiscal year.
Guest room revenue increased $79,733 or 12.6% for the current period due to an
increase in the occupancy rate to 71.1% (as compared with 68.3% for the
corresponding period of the preceding fiscal year) and an increase in average
room rate from $50.07 in 1995 to $53.83 in 1996 for the comparative periods.
Total expenditures increased $22,484 or 4.8% during the six months
covered by this report as compared to the previous fiscal year. The expenditure
increase is associated with the improved occupancy.
-7-
<PAGE>
SUPER 8 ECONOMY LODGING IV, LTD.
(A California Limited Partnership)
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
MARCH 31, 1996 (Continued)
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
5-2-96 By /S/ David P. Grotewohl
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Date David P. Grotewohl,
President of Grotewohl
Management Services, Inc.,
Managing General Partner
5-2-96 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> 6-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-01-1995
<PERIOD-END> MAR-31-1996
<CASH> 784,403
<SECURITIES> 0
<RECEIVABLES> 23,539
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 809,338
<PP&E> 3,570,027
<DEPRECIATION> 1,697,483
<TOTAL-ASSETS> 2,719,979
<CURRENT-LIABILITIES> 77,832
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 2,642,147
<TOTAL-LIABILITY-AND-EQUITY> 2,719,979
<SALES> 733,958
<TOTAL-REVENUES> 749,729
<CGS> 377,023
<TOTAL-COSTS> 377,023
<OTHER-EXPENSES> 115,587
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 257,119
<INCOME-TAX> 0
<INCOME-CONTINUING> 257,119
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 257,119
<EPS-PRIMARY> 25.45
<EPS-DILUTED> 25.45
</TABLE>
