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 December 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
DECEMBER 31, 1996 AND 1995
<PAGE>
SUPER 8 ECONOMY LODGING IV, LTD.
(A California Limited Partnership)
INDEX
Financial Statements: PAGE
Balance Sheet - December 31, 1996 and September 30, 1996 2
Statement of Operations - Three Months Ended
December 31, 1996 and 1995 3
Statement of Changes in Partners' Equity -
Three Months Ended December 31, 1996 and 1995 4
Statement of Cash Flows - Three Months Ended
December 31, 1996 and 1995 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
December 31, 1996 and September 30, 1996
12/31/96 9/30/96
ASSETS ----------- -----------
Current Assets:
Cash and temporary investments $ 910,303 $ 938,477
Accounts receivable 22,380 21,563
Prepaid expenses 7,902 12,789
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Total current assets 940,585 972,829
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Property and Equipment:
Land 799,312 799,311
Buildings 2,226,530 2,246,419
Furniture and equipment 522,723 530,321
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3,548,565 3,576,051
Accumulated depreciation (1,739,677) (1,755,449)
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Property and equipment, net 1,808,888 1,820,602
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Other Assets: 48,141 48,141
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Total Assets $ 2,797,614 $ 2,841,572
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 88,920 $ 111,444
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Total current liabilities 88,920 111,444
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Total liabilities 88,920 111,444
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Contingent Liabilities (See Note 1)
Partners' Equity:
General Partners (9,045) (10,707)
Limited Partners 2,717,739 2,740,835
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Total partners' equity 2,708,694 2,730,128
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Total Liabilities and Partners' Equity $ 2,797,614 $ 2,841,572
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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 Three Months Ending December 31, 1996 and 1995
Three Months Three Months
Ended Ended
12/31/96 12/31/95
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Income:
Guest room $ 427,216 $ 363,178
Telephone and vending 13,054 8,822
Interest 9,170 6,073
Other 296 1,264
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Total Income 449,736 379,337
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Expenses:
Motel operating expenses (Note 2) 206,149 190,920
General and administrative 27,478 16,426
Depreciation and amortization 28,038 27,885
Property management fees 22,005 18,609
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Total Expenses 283,670 253,840
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Net Income (Loss) $ 166,066 $ 125,497
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Net Income (Loss) Allocable
to General Partners $1,661 $1,255
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Net Income (Loss) Allocable
to Limited Partners $164,405 $124,242
======== ========
Net Income (Loss)
per Partnership Unit $16.44 $12.42
======== ========
Distribution to Limited Partners
per Partnership Unit $13.65 $13.65
======== ========
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 Three Months Ending December 31, 1996 and 1995
12/31/96 12/31/95
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General Partners:
Balance, beginning of year $ (10,707) $ (17,358)
Net income (loss) 1,661 1,255
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Balance, End of period (9,046) (16,103)
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Limited Partners:
Balance, beginning of year 2,740,835 2,675,386
Net income (loss) 164,405 124,242
Distributions to Limited Partners (187,500) (13,500)
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Balance, End of Period 2,717,740 2,786,128
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Total Partners' Equity $ 2,708,694 $ 2,770,025
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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 Three Months Ending December 31, 1996 and 1995
12/31/96 12/31/95
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Cash Flows from Operating Activities:
Received from motel revenues $ 440,383 $ 373,392
Expended for motel operations and
general and administrative expenses (273,769) (242,185)
Interest received 8,536 7,390
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Net Cash Provided (Used) by Operating Activities 175,150 138,597
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Cash Flows from Investing Activities:
Purchases of property and equipment (16,324) (19,539)
Proceeds from sale of land 500 -
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Net Cash Provided (Used) by Investing Activities (15,824) (19,539)
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Cash Flows from Financing Activities:
Distributions to limited partners (187,500) (136,500)
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Net Cash Provided (Used) by Financing Activities (187,500) (136,500)
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Net Increase (Decrease) in Cash
and Temporay investments (28,174) (17,442)
Cash and Temporary Investments:
Beginning of period 938,477 794,899
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End of period $ 910,303 $ 777,457
=========== ===========
Reconciliation of Net Income (Loss) to Net Cash Provided (Used) by
Operating Activities:
Net Income (Loss) $ 166,066 $ 125,497
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Adjustments to reconcile net income to
net cash used by operating activities:
Depreciation and amortization 28,038 27,885
(Gain) loss on disposition of property and equipment (500) -
(Increase) decrease in accounts receivable (817) 1,444
(Increase) decrease in prepaid expenses 4,887 4,606
Increase (decrease) in accounts payable (22,524) (20,835)
----------- -----------
Total Adjustments 9,084 13,100
Net Cash Provided (Used) by Operating Activities $ 175,150 $ 138,597
=========== ===========
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
December 31, 1996
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, 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 $ 22,005
Franchise Fees $ 8,555
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 Three Months
Ended Ended
12/31/96 12/31/95
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Salaries and related costs $ 76,202 $ 71,705
Franchise and advertising fees 21,388 18,170
Utilities 16,252 16,420
Allocated costs,
mainly indirect salaries 24,547 24,870
Replacements and renovations 5,651 5,090
Other operating expenses 62,109 54,665
----------- -----------
Total motel operating expenses $ 206,149 $ 190,920
=========== ===========
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
DECEMBER 31, 1996
LIQUIDITY AND CAPITAL RESOURCES
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The Partnership's current assets of $940,585 exceeded its current liabilities
of $88,920 providing an operating reserve of $851,655, 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
three months of the fiscal year which will end on September 30, 1997, were
$21,975 or 5.1% of room revenues. Expenditures of this type are not expected to
exceed the General Partners' 3% guideline on a yearly basis.
RESULTS OF OPERATIONS
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The following is a comparison of operating results for the three month periods
ended December 31, 1996 and December 31, 1995.
Total revenues increased $70,399 or 18.6%. Guest room revenue increased $64,038
or 17.6% for the current period due to an increase in the occupancy rate to
76.3% (as compared with 71.0% for the corresponding period of the preceding
fiscal year) and an increase in average room rate from $54.48 in 1995 to
$59.71 in 1996 for the comparative periods.
Total expenditures increased $29,830 or 11.8% during the three months covered
by this report as compared to the previous fiscal year. The expenditure
increase is associated with the improved occupancy.
FUTURE TRENDS
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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.
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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
2-7-96 By /S/ David P. Grotewohl
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Date David P. Grotewohl,
President of Grotewohl
Management Services, Inc.,
Managing General Partner
2-7-96 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> 3-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> DEC-31-1996
<CASH> 910,303
<SECURITIES> 0
<RECEIVABLES> 22,380
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 940,585
<PP&E> 3,548,565
<DEPRECIATION> 1,739,677
<TOTAL-ASSETS> 2,797,614
<CURRENT-LIABILITIES> 88,920
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 2,708,694
<TOTAL-LIABILITY-AND-EQUITY> 2,797,614
<SALES> 440,270
<TOTAL-REVENUES> 449,739
<CGS> 206,149
<TOTAL-COSTS> 206,149
<OTHER-EXPENSES> 77,521
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 166,066
<INCOME-TAX> 0
<INCOME-CONTINUING> 166,066
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 166,066
<EPS-PRIMARY> 16.44
<EPS-DILUTED> 16.44
</TABLE>
