<PAGE>
UNITED STATES
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 period ended June 30, 1995
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or
[_] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 [No Fee Required]
For the transition period from __________________ to ____________________
Commission File Number 0-11186
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PS PARTNERS, LTD.
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(Exact name of registrant as specified in its charter)
California 95-3729108
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
600 North Brand Blvd.
Glendale, California 91203-1241
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (818) 244-8080
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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 X No
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INDEX
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<S> <C>
PART I. FINANCIAL INFORMATION
Condensed consolidated balance sheets at June 30, 1995
and December 31, 1994 2
Condensed consolidated statements of income for the three and six
months ended June 30, 1995 and 1994 3
Condensed consolidated statements of cash flows for the six
months ended June 30, 1995 and 1994 4
Notes to condensed consolidated financial statements 5
Management's discussion and analysis of financial condition
and results of operations 6-7
PART II. OTHER INFORMATION
(Items 1 through 5 are not applicable)
Item 6 - Exhibits and Reports on Form 8-K 8
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PS PARTNERS, LTD
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30 December 31,
1995 1994
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<S> <C> <C>
(Unaudited)
ASSETS
Cash and cash equivalents $ 2,045,000 $ 1,855,000
Rent and other receivables 44,000 57,000
Real estate facilities, at cost:
Land 11,855,000 11,855,000
Buildings and equipment 45,314,000 45,063,000
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57,169,000 56,918,000
Less accumulated depreciation (21,007,000) (19,913,000)
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36,162,000 37,005,000
Other assets 123,000 123,000
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$ 38,374,000 $ 39,040,000
============ ============
LIABILITIES AND PARTNERS' EQUITY
Accounts payable $ 434,000 $ 486,000
Advance payments from renters 408,000 405,000
Minority interest in general 21,414,000 21,540,000
partnerships
Partners' equity:
Limited partners' equity, $500 per
unit, 66,000 units authorized,
issued and outstanding 15,914,000 16,399,000
General partner's equity 204,000 210,000
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Total partners' equity 16,118,000 16,609,000
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$ 38,374,000 $ 39,040,000
============ ============
</TABLE>
See accompanying notes.
2
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PS PARTNERS, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
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1995 1994 1995 1994
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUE:
Rental income $2,702,000 $2,653,000 $5,349,000 $5,190,000
Interest income 29,000 9,000 58,000 13,000
---------- ---------- ---------- ----------
2,731,000 2,662,000 5,407,000 5,203,000
---------- ---------- ---------- ----------
COSTS AND EXPENSES:
Cost of operations 837,000 835,000 1,701,000 1,650,000
Management fees 161,000 161,000 319,000 311,000
Depreciation and amortization 542,000 530,000 1,094,000 1,060,000
Administrative 51,000 42,000 79,000 63,000
---------- ---------- ---------- ----------
1,591,000 1,568,000 3,193,000 3,084,000
---------- ---------- ---------- ----------
Income before minority interest 1,140,000 1,094,000 2,214,000 2,119,000
Minority interest in income 609,000 623,000 1,182,000 1,200,000
---------- ---------- ---------- ----------
NET INCOME $ 531,000 $ 471,000 $1,032,000 $ 919,000
========== ========== ========== ==========
Limited partners' share of net income
($13.20 per unit in 1995 and $12.42
per unit in 1994) $ 871,000 $ 820,000
General partner's share of net income 161,000 99,000
---------- ----------
$1,032,000 $ 919,000
========== ==========
</TABLE>
See accompanying notes.
3
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PS PARTNERS, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
June 30
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1995 1994
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,032,000 $ 919,000
Adjustments to reconcile net
income to net cash provided by
operating activities
Depreciation and amortization 1,094,000 1,060,000
Decrease in rent and other
receivables 13,000 -
Decrease in other assets - (1,000)
Decrease in accounts payable (52,000) (121,000)
Increase (decrease) in
advance payments from renters 3,000 (29,000)
Minority interest in income 1,182,000 1,200,000
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Total adjustments 2,240,000 2,109,000
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Net cash provided by
operating activities 3,272,000 3,028,000
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CASH FLOWS USED IN INVESTING ACTIVITIES:
Additions to real estate facilities (251,000) (216,000)
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Net cash used in
investing activities (251,000) (216,000)
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CASH FLOWS USED IN FINANCING ACTIVITIES:
Distributions to holder of
minority interest (1,308,000) (1,271,000)
Distributions to partners (1,523,000) (926,000)
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Net cash used in
financing activities (2,831,000) (2,197,000)
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Net increase in cash and cash
equivalents 190,000 615,000
Cash and cash equivalents at the
beginning of the period 1,855,000 831,000
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Cash and cash equivalents at the end of
the period $ 2,045,000 $ 1,446,000
=========== ===========
</TABLE>
See accompanying notes.
4
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PS PARTNERS, LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1995
(UNAUDITED)
1. The accompanying unaudited condensed consolidated financial statements have
been prepared pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted pursuant to
such rules and regulations, although management believes that the disclosures
contained herein are adequate to make the information presented not
misleading. These unaudited condensed consolidated financial statements
should be read in conjunction with the financial statements and related notes
appearing in the Partnership's Form 10-K for the year ended December 31,
1994.
2. In the opinion of management, the accompanying unaudited condensed
consolidated financial statements reflect all adjustments, consisting of only
normal accruals, necessary to present fairly the Partnership's financial
position at June 30, 1995, the results of operations for the three and six
months ended June 30, 1995 and 1994 and cash flows for the six months then
ended.
3. The results of operations for the three and six months ended June 30, 1995
are not necessarily indicative of the results to be expected for the full
year.
5
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PS PARTNERS, LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
Results of Operations:
----------------------
THREE AND SIX MONTHS ENDED JUNE 30, 1995 COMPARED TO THREE AND SIX MONTHS ENDED
JUNE 30, 1994:
The Partnership's net income was $1,032,000 and $919,000 for the six months
ended June 30, 1995 and 1994, respectively, representing an increase of
$113,000. Net income was $531,000 and $471,000 for the three months ended June
30, 1995 and 1994, respectively, representing an increase of $60,000. These
increases were primarily due to improved property operating results combined
with increased interest income and partially offset by an increase in
depreciation expense.
Rental income for the six months ended June 30, 1995 was $5,349,000 compared
to $5,190,000 for the same period in 1994, representing an increase of
$159,000, or 3%. Rental income improved at both the mini-warehouse facilities
and the business park facilities. Rental income at the mini-warehouse
facilities for the six months increased to $5,027,000 in 1995 from $4,889,000 in
1994, representing an increase of $138,000 or 3%. Rental income at the business
park facilities for the six months increased to $322,000 in 1995 from $301,000
in 1994, representing an increase of $21,000 or 7%.
Rental income for the three months ended June 30, 1995 was $2,702,000
compared to $2,653,000 for the same period in 1994, representing an increase of
$49,000, or 2%. Rental income at the mini-warehouse facilities for the three
months increased to $2,537,000 in 1995 from $2,504,000 in 1994, representing an
increase of $33,000 or 1%. Rental income at the Partnership's business park
facilities for the three months increased to $165,000 in 1995 from $149,000 in
1994, representing an increase of $16,000 or 11%.
The increases in rental income for both the six and three month periods were
the result of increased average realized rental rates at the Partnership's mini-
warehouse and business park facilities, and increased occupancy at the business
park facilities. The weighted average occupancy levels at the mini-warehouse
and business park facilities were 88% and 93%, respectively, for the six months
ended June 30, 1995 compared to 89% and 88% respectively, for the six months
ended June 30, 1994. The monthly average realized rent per square foot for the
mini-warehouse and business park facilities was $.58 and $.66, respectively, for
the six months ended June 30, 1995 and $.56 and $.63, respectively, for the six
months ended June 30, 1994.
6
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PS PARTNERS, LTD.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
Cost of operations (including management fees) were $2,020,000 and $1,961,000
for the six months ended June 30, 1995 and 1994, respectively, representing an
increase of $59,000. Cost of operations (including management fees) were
$998,000 and $996,000 for the three months ended June 30, 1995 and 1994,
respectively, representing an increase of $2,000. These increases were
primarily attributable to increases in payroll, insurance, and property tax
expenses.
General and administrative expenses increased from $79,000 in 1994 to $63,000
in 1995 or $16,000. This increase is principally a result of non-recurring
expenses totaling $27,000 incurred in connection with having the Partnership's
facilities undergo environmental studies.
Minority interest in income decreased $18,000 to $1,182,000 from $1,200,000
for the six months ended June 30, 1995 and 1994, respectively. This decrease
was primarily attributable to the allocation of depreciation and amortization
expense (pursuant to the partnership agreement with respect to those real estate
facilities which are jointly owned with SEI) to SEI of $195,000 for the six
months ended June 30, 1995 compared to $145,000 for the same period in 1994,
partially offset by an increase in operations at the Partnership's real estate
facilities owned jointly with SEI.
Liquidity and Capital Resources
-------------------------------
The Partnership has adequate sources of cash to finance its operations, both
on a short-term and long-term basis, primarily from internally generated cash
from property operations and cash reserves. Cash generated from operations
($3,272,000 for the six months ended June 30, 1995) has been sufficient to meet
all current obligations of the Partnership.
During 1995, the Partnership anticipates approximately $770,000 of capital
improvements (of which $295,000 represents SEI's joint venture share). Total
capital improvements were $251,000 for the six months ended June 30, 1995 of
which $169,000 represents the Partnership's share.
The Partnership paid distributions to the limited and general partners
totaling $1,356,000 ($20.55 per unit) and $167,000, respectively, during the
first six months of 1995. Future distribution rates may be adjusted to levels
which are supported by operating cash flow after capital improvements and any
other necessary obligations.
7
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PART II. OTHER INFORMATION
ITEMS 1 through 5 are not applicable.
Item 6 Exhibits and Reports on Form 8-K
--------------------------------
(a) The following Exhibits are included herein:
(27) Financial Data Schedule
(b) Form 8-K
None
SIGNATURES
Pursuant to the requirements 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.
DATED: August 8, 1995
PS PARTNERS, LTD.
BY: Storage Equities, Inc.
General Partner
BY: /s/ RONALD L. HAVNER, JR.
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Ronald L. Havner, Jr.
Vice President - Storage Equities, Inc.
(principal financial and accounting
officer)
8
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> JUN-30-1995
<CASH> 2,045,000
<SECURITIES> 0
<RECEIVABLES> 44,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,089,000
<PP&E> 57,169,000
<DEPRECIATION> (21,007,000)
<TOTAL-ASSETS> 38,374,000
<CURRENT-LIABILITIES> 842,000
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 16,118,000
<TOTAL-LIABILITY-AND-EQUITY> 38,374,000
<SALES> 5,349,000
<TOTAL-REVENUES> 5,407,000
<CGS> 2,020,000
<TOTAL-COSTS> 2,020,000
<OTHER-EXPENSES> 1,173,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,032,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,032,000
<EPS-PRIMARY> 13.20
<EPS-DILUTED> 0.000
</TABLE>
