SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended March 31, 1996 Commission File Number 0-12210
PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
(Exact name of small business issuer as specified in its charter)
Maryland 04-2801764
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization
One International Place, Boston, MA 02110
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (617) 330-8600
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
<PAGE>
PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
BALANCE SHEETS
(NOTE 1)
<TABLE>
ASSETS
March 31, December 31,
1996 1995
(Unaudited) (Audited)
<S> <C> <C>
Cash and cash equivalents....................................................... $ 121,159 $ 121,409
Due from operating partnership.................................................. 1,652 1,652
--------- ---------
Total Assets............................................................ $ 122,811 $ 123,061
========= =========
LIABILITIES AND PARTNERS' DEFICIT
Loans from general partner...................................................... 20,082 20,082
Partners' Deficit............................................................... 102,729 102,979
--------- ---------
Total Liabilities and Partners' Capital................................. $ 122,811 $ 123,061
========= =========
The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>
<PAGE>
PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
(UNAUDITED) (NOTE 1)
<TABLE>
For the Three Months
Ended March 31,
1996 1995
-------------------------------
<S> <C> <C>
INCOME:
Interest................................................... $ - $ -
-------- -----
EXPENSES:
Administration fee......................................... - 31,250
Professional fees.......................................... 250 750
-------- --------
250 32,000
Net Loss $( 250) $(32,000)
======== ========
Net loss per unit of limited
partnership interest outstanding $ (.42) $ (54.00)
========= ===========
The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>
<PAGE>
PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOW
(UNAUDITED) (NOTE 1)
<TABLE>
For the Three Months Ended
March 31,
------------------
1996 1995
---------- -------
<S> <C> <C>
Cash flow from operating activities:
Net loss.................................................................... $ ( 250) $ (32,000)
Adjustments to reconcile net loss to net cash
used by operating activities:
Change in assets and liabilities:
Decrease in accounts payable........................................ - -
Increase in Loans and fees due affiliates........................... - 32,000
--------- ---------
Net cash used by operating activities................................. ( 250) -
--------- ------
Net increase (decrease) in cash and cash equivalents............................ ( 250) -
--------- ------
Cash and cash equivalents at beginning of period................................ 121,409 -
--------- ------
Cash and cash equivalents at end of period...................................... $ 121,159 $ -
========= ======
The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>
<PAGE>
PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
STATEMENTS OF CHANGES IN PARTNERS' DEFICIT
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(UNAUDITED) (NOTE 1)
<TABLE>
Linnaeus-
Phoenix
Winthrop Associates Investor Total
Financial Limited Limited Partners'
Co., Inc. Partnership Partners Deficit
<S> <C> <C> <C> <C>
Balance,
December 31, 1995......................... $(271,513) $(573,422) $947,914 $ 102,979
Net Loss.................................... (1) (1) (248) (250)
------- ------- ----- ------
Balance,
March 31, 1996............................ $(271,514) $(573,423) $948,162 $ 102,729
========= ========= ======== =========
Balance,
December 31, 1994......................... $(276,630) $(578,539) $(65,224) $(920,393)
Net Loss.................................... (160) (160) (31,680) (32,000)
--------- --------- -------- ---------
Balance,
March 31, 1995............................ $(276,790) $(578,699) $(96,904) $(952,393)
========= ========= ======== =========
The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>
<PAGE>
PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
(UNAUDITED)
1. ACCOUNTING AND FINANCIAL REPORTING POLICIES
The condensed financial statements included herein have been prepared
by the Partnership, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission. The
Partnership's accounting and financial reporting policies are in
conformity with generally accepted accounting principles and include
all adjustments in interim periods considered necessary for a fair
presentation of the results of operations. 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.
It is suggested that these condensed financial statements be read in
conjunction with the financial statements and the notes thereto
included in the Partnership's latest annual report on Form 10-K.
The accompanying financial statements reflect the Partnership's
results of operations for an interim period and are not necessarily
indicative of the results of operations for the year ending December
31, 1996.
2. INVESTMENT IN OPERATING PARTNERSHIP
The Partnership accounts for its investment in Presidential Towers,
Ltd. (the "Operating Partnership") using the equity method of
accounting. Under the equity method of accounting, the initial
investment is recorded at cost, increased or decreased by the
Partnership's share of income or losses, and decreased by
distributions. Equity in the loss of the Operating Partnership is no
longer recognized once the investment balance reaches zero.
The loss from the Operating Partnership, not recognized since the
investment balance reached zero, will be offset against the
Partnership's share of future income from the Operating Partnership.
3. TAXABLE LOSS
The Partnership's taxable loss for 1996 is expected to differ from
that for financial reporting purposes primarily due to accounting
differences in the recognition of construction period costs and
depreciation incurred by the Operating Partnership.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
This Item should be read in conjunction with the financial statements
and other items contained elsewhere in the report.
LIQUIDITY AND CAPITAL RESOURCES
The Partnership's primary source of liquidity is distributions from
Presidential Towers Ltd., an Illinois limited partnership (the
"Operating Partnership"). The Partnership is responsible for paying
various administrative costs associated with monitoring the
Partnership's investment in the Operating Partnership, and paying
various professional fees associated with the affairs of the
Partnership.
During the three months ended March 31, 1996, the Operating
Partnership did not make any distributions to the Partnership. A
significant restructuring of the ownership and debt of the Operating
Partnership was finalized in April 1995. As a result of this
restructuring, the Partnership is entitled to receive an annual
distribution from the Operating Partnership as a reimbursement of the
Partnership's administrative expenses and professional fees up to an
annual maximum of $30,000. It is not expected that the Operating
Partnership will be able to make any distribution to the Partnership
in excess of this amount until the Operating Partnership's asset is
sold. However, due to the preferred return to required to be paid to
TKI Presidential Partners and the Department of Housing and Urban
Development, it is likely that a sale of the Operating Partnership's
assets will not generate sufficient funds to permit a distribution to
the Partnership. Accordingly, it is anticipated that limited partners
will not receive a return of their original investment in the
Partnership.
The Partnership's liquidity based on cash and cash equivalents
remained constant at March 31, 1995 as compared to December 31, 1995.
It is expected that so long as the Partnership's administrative
expenses do not exceed $30,000 in any year, the Partnership's cash and
cash equivalents will remain constant until the Operating Partnership
is liquidated.
RESULTS OF OPERATIONS
Operating results improved by $31,750 for the three months ended March
31, 1996 as compared to the three months ended March 31, 1995 due to a
decrease in expenses of $31,750.
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
No Report on Form 8-K was required to be filed during the period.
SIGNATURE
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.
PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
(Registrant)
By: Winthrop Financial Co., Inc.
One of its General Partners
By: /s/ Michael L. Ashner
Michael L. Ashner
Chief Executive Officer
By: /s/ Edward V. Williams
Edward V. Williams
Chief Financial Officer
Dated: May 15, 1996
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information
extracted from unaudited financial statements for the
three month period ending March 31, 1996 and is
qualified in its entirety by reference to such financial
statements
</LEGEND>
<CIK> 0000726666
<NAME> Presidential Associates I Limited Partnership
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<EXCHANGE-RATE> 1.00000
<CASH> 121159
<SECURITIES> 0
<RECEIVABLES> 1652
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 122811
<CURRENT-LIABILITIES> 20082
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 102729
<TOTAL-LIABILITY-AND-EQUITY> 122811
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 250
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (250)
<INCOME-TAX> 0
<INCOME-CONTINUING> (250)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (250)
<EPS-PRIMARY> (00.42)
<EPS-DILUTED> 00.00
</TABLE>
