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, 1997
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, 1997 AND 1996
<PAGE>
SUPER 8 ECONOMY LODGING IV, LTD.
(A California Limited Partnership)
INDEX
Financial Statements: PAGE
Balance Sheet - March 31, 1997 and September 30, 1996 2
Statement of Operations - Six Months Ended
March 31, 1997 and 1996 3
Statement of Changes in Partners' Equity -
Six Months Ended March 31, 1997 and 1996 4
Statement of Cash Flows - Six Months Ended
March 31, 1997 and 1996 5
Notes to Financial Statements 6
Management Discussion and Analysis 7
Other Information and Signatures 8 - 9
<PAGE>
Super 8 Economy Lodging IV, Ltd.
(A California Limited Partnership)
Balance Sheet
March 31, 1997 and December 31, 1996
3/31/97 9/30/96
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ASSETS
Current Assets:
Cash and temporary investments $ 946,768 $ 938,477
Accounts receivable 24,904 21,563
Prepaid expenses 1,613 12,789
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Total current assets 973,285 972,829
--------- ---------
Property and Equipment:
Land 799,312 799,312
Buildings 2,226,530 2,226,530
Furniture and equipment 525,006 550,209
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3,550,848 3,576,051
Accumulated depreciation (1,768,281) (1,755,449)
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Property and equipment, net 1,782,567 1,820,602
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Other Assets: 63,975 48,141
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Total Assets $2,819,827 $2,841,572
========= =========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 106,439 $ 111,444
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Total current liabilities 106,439 111,444
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Total liabilities 106,439 111,444
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Contingent Liabilities (See Note 1)
Partners' Equity:
General Partners (7,124) (10,705)
Limited Partners 2,720,512 2,740,833
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Total partners' equity 2,713,388 2,730,128
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Total Liabilities and Partners' Equity $2,819,827 2,841,572
========= =========
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, 1997 and 1996
Three Months Six Months Three Months Six Months
Ended Ended Ended Ended
3/31/97 3/31/97 3/31/96 3/31/96
--------- --------- --------- ---------
Income:
Guest room $ 415,746 842,962 351,052 714,230
Telephone and vending 9,633 22,687 10,906 19,728
Interest 8,471 17,641 7,540 13,613
Other 237 533 894 2,158
--------- --------- --------- ---------
Total Income 434,087 883,823 370,392 749,729
--------- --------- --------- ---------
Expenses:
Motel operating expenses (Note 2) 184,850 391,000 186,105 377,023
General and administrative 7,136 34,614 5,607 22,033
Depreciation and amortization 28,604 56,642 28,863 56,748
Property management fees 21,302 43,307 18,197 36,806
--------- --------- --------- ---------
Total Expenses 241,892 525,563 238,772 492,610
--------- --------- --------- ---------
Net Income (Loss) $ 192,195 358,260 131,620 257,119
========= ========= ========= =========
Net Income (Loss) Allocable
to General Partners $1,922 $3,583 $1,316 $2,571
======== ======== ======== ========
Net Income (Loss) Allocable
to Limited Partners $190,273 $354,677 $130,304 $254,548
======== ======== ======== ========
Net Income (Loss)
per Partnership Unit $19.03 $35.47 $13.03 $25.45
======== ======== ======== ========
Distribution to Limited Partners
per Partnership Unit $18.75 $37.50 $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 Partners' Equity
For the Six Months Ending March 31, 1997 and 1996
3/31/97 3/31/96
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General Partners:
Balance, beginning of year $ (10,707) $ (17,358)
Net income (loss) 3,583 2,571
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Balance, End of period (7,124) (14,787)
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Limited Partners:
Balance, beginning of year 2,740,835 2,675,386
Net income (loss) 354,677 254,548
Distributions to Limited Partners (375,000) (273,000)
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Balance, End of Period 2,720,512 2,656,934
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Total Partners' Equity $2,713,388 $2,642,147
========= =========
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 Ending March 31, 1997 and 1996
3/31/97 3/31/96
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Cash Flows from Operating Activities:
Received from motel revenues $ 865,505 $ 734,944
Expended for motel operations and
general and administrative expenses (479,084) (458,933)
Interest received 14,977 13,589
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Net Cash Provided (Used) by Operating Activities 401,398 289,600
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Cash Flows from Investing Activities:
Purchases of property and equipment (18,607) (27,096)
Proceeds from sale of land 500 -
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Net Cash Provided (Used) by Investing Activities (18,107) (27,096)
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Cash Flows from Financing Activities:
Distributions to limited partners (375,000) (273,000)
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Net Cash Provided (Used) by Financing Activities (375,000) (273,000)
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Net Increase (Decrease) in Cash and
Temporary Investments 8,291 (10,496)
Cash and Temporary Investments:
Beginning of period 938,477 794,899
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End of period $ 946,768 $ 784,403
========= =========
Reconciliation of Net Income (Loss) to Net Cash Provided (Used) by
Operating Activities:
Net Income (Loss) $ 358,260 $ 257,119
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Adjustments to reconcile net income to net cash used by operating activities:
Depreciation and amortization 56,642 56,748
(Gain) loss on disposition of property and equipment (500) -
(Increase) decrease in accounts receivable (3,341) (1,196)
(Increase) decrease in prepaid expenses 11,176 10,538
(Increase) decrease in other assets (15,834) -
Increase (decrease) in accounts payable (5,005) (33,609)
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Total Adjustments 43,138 32,481
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Net Cash Provided (Used) by Operating Activities $ 401,398 $ 289,600
========= =========
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
For the Six Months Ending March 31, 1997 and 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 September 30, 1996 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 $43,307
Franchise Fees $16,879
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 Months Six Months Three Months Six Months
Ended Ended Ended Ended
3/31/97 3/31/97 3/31/96 3/31/96
--------- --------- --------- ---------
Salaries and related costs $ 74,954 $ 151,156 $ 78,156 $ 149,860
Franchise and advertising fees 20,809 42,197 17,573 35,743
Utilities 14,760 31,012 13,122 29,542
Allocated costs,
mainly indirect salaries 22,055 46,602 22,909 47,780
Replacements and renovations 2,614 8,265 428 5,517
Other operating expenses 49,658 111,768 53,917 108,581
--------- --------- --------- ---------
Total motel operating expenses $ 184,850 $ 391,000 $ 186,105 $ 377,023
========= ========= ========= =========
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, 1997
LIQUIDITY AND CAPITAL RESOURCES
The Partnership's current assets of $973,285 exceeded its current liabilities of
$106,439 providing an operating reserve of $866,846, 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, 1997, were $26,873 (of
which $18,607 was capitalized) or 3.2% of room revenues. Expenditures of this
type are not expected to exceed the General Partners' 3% guideline on a yearly
basis.
RESULTS OF OPERATIONS
The following is a comparison of operating results for the six month periods
ended March 31, 1997 and March 31, 1996.
Total revenues increased $134,094 or 17.9% for the six months ended March 31,
1997 as compared to the corresponding period of the preceding fiscal year. Guest
room revenue increased $128,732 or 18.0% for the current period due to an
increase in the occupancy rate to 75.9% (as compared with 71.1% for the
corresponding period of the preceding fiscal year) and an increase in average
room rate from $53.83 in 1996 to $59.83 in 1997 for the comparative periods.
Total expenditures increased $32,953 or 6.7% during the six months covered by
this report as compared to the previous fiscal year. The expenditure increase is
associated with the improved occupancy.
FUTURE TRENDS
The General Partners expect the Pleasanton motel to continue its improved
performance in the near-term future. Additional motel rooms opened and under
construction in the Pleasanton market may negatively affect the Partnership's
motel performance in the long-run.
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.
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<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
--------------------------------
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
5-5-97 By /S/ David P. Grotewohl
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Date David P. Grotewohl,
President of Grotewohl
Management Services, Inc.,
Managing General Partner
5-5-97 By /S/ David P. Grotewohl
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Date David P. Grotewohl,
Chief Financial Officer
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> MAR-31-1997
<CASH> 946,768
<SECURITIES> 0
<RECEIVABLES> 24,904
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 973,285
<PP&E> 3,550,848
<DEPRECIATION> 1,768,281
<TOTAL-ASSETS> 2,819,827
<CURRENT-LIABILITIES> 106,439
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,713,388
<TOTAL-LIABILITY-AND-EQUITY> 2,819,827
<SALES> 865,649
<TOTAL-REVENUES> 883,823
<CGS> 391,000
<TOTAL-COSTS> 391,000
<OTHER-EXPENSES> 134,563
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 358,260
<INCOME-TAX> 0
<INCOME-CONTINUING> 358,260
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 358,260
<EPS-PRIMARY> 35.47
<EPS-DILUTED> 35.47
</TABLE>
