SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30, 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)
ASSETS
<TABLE>
September 30, December 31,
1996 1995
(Unaudited) (Audited)
<S> <C> <C>
Cash and cash equivalents $ 190,895 $ 121,409
Due from Operating Partnership 4,149 1,652
--------- ---------
Total Assets $ 195,044 $ 123,061
========= =========
LIABILITIES AND PARTNERS' CAPITAL
Loans and fees due affiliates $ - $ 20,082
Partners' Capital 195,044 102,979
--------- ---------
Total Liabilities and Partners' Capital $ 195,044 $ 123,061
========= =========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
(UNAUDITED) (NOTE 1)
<TABLE>
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
1996 1995 1996 1995
-------------------------------------------------------------------
EXPENSES:
<S> <C> <C>
Administration fee - - $ - $ 37,414
Other expenses - - 739 856
--------------------------------------------------------------------
- - 739 38,270
--------------------------------------------------------------------
Net Loss before
other income - - (739) (38,270)
OTHER INCOME
Distribution from
operating partnership - - 92,804 -
Gain on Debt Extinguishm - - - 958,663
---------------------------------------------------------------------
Net Income - - $ 92,065 $ 920,393
=====================================================================
Net Income per unit
of limited partnership
interest outstanding - - $ 154 $ 1,544
=====================================================================
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOW
(UNAUDITED) (NOTE 1)
<TABLE>
For the Nine Months Ended
September 30,
1996 1995
<S> <C> <C>
Net Income $ 92,065 $ 920,393
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Gain on extinguishment of debt - (958,663)
----------------------------
Net Cash provided by (used in)
Operating activities 92,065 (38,270)
----------------------------
Cash flows from Investing Activities:
Increase in due from Operating Partnership (2,497) (1,653)
----------------------------
Net Cash used by Investing Activities (2,497) (1,653)
----------------------------
Cash flows from Financing Activities:
Proceeds from loans from affiliates - 58,352
Payment of loans from affiliates (20,082) -
--------------------------
Net Cash provided by (used by
Financing Activities (20,082) 58,352
----------------------------
Net increase in cash 69,486 18,429
----------------------------
Cash, beginning of period 121,409 0
----------------------------
Cash, end of period $ 190,895 $ 18,429
============================
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(UNAUDITED) (NOTE 1)
<TABLE>
Linnaeus-
Phoenix
Winthrop Associates Investor Total
Financial Limited Limited Partners'
Co., Inc. Partnership Partners Capital
Balance,
<S> <C> <C> <C> <C>
December 31, 1995......................... $(271,513) $(573,422) $ 947,914 $ 102,979
Net Income.................................. 460 460 91,145 92,065
--------- --------- ---------- ---------
Balance,
September 30, 1996........................ $(271,053) $(572,962) $1,039,059 $ 195,044
========= ========= ========== =========
Balance,
December 31, 1994......................... $(276,630) $(578,539) $ (65,224) $(920,393)
Net Loss.................................... 4,602 4,602 911,189 920,393
--------- --------- ---------- ---------
Balance,
September 30, 1995........................ $(272,028) $(573,937) $ 845,965 $ 0
========= ========= ========== =========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 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 Registrant'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 INCOME (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 OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
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 nine months ended September 30, 1996, the Operating Partnership made
a distribution of $92,804 to the Partnership. Pursuant to the terms of the
Regulatory Agreement governing the Operating Partnership, the Operating
Partnership is permitted to make semi-annual distributions from surplus cash. In
addition, 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. During the
three months ended September 30, 1996, the Partnership received such a
distribution in the amount of $23,183. Any future distributions from the
Operating Partnership are subject to the terms of the Regulatory Agreement.
Based on information provided to the Partnership from the Operating Partnership,
the Partnership anticipates receiving a distribution from the Operating
Partnership of approximately $75,000 during the second half of 1996.
As a result of the restrictions set forth in the Regulatory Agreement on the
ability of the Operating Partnership to make distributions, the preferred return
required to be paid to TKI Presidential Partners and the Department of Housing
and Urban Development from a sale of the property, 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 increased to
$190,894 at September 30, 1996 as compared to $121,409 at December 31, 1995 due
to the distributions from the Operating Partnership. These were partially offset
by the reimbursement of loans from an affiliate totalling $20,082. 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
relatively constant until the Operating Partnership is liquidated.
RESULTS OF OPERATIONS
Operating results improved by $5,781 for the nine months ended September 30,
1996 as compared to the nine months ended September 30, 1995 due to a decrease
in administrative expenses of $6,164 which was partially offset by an increase
in other expenses.
PART II - OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
A. EXHIBITS
Exhibit 27 - Financial Data Schedule
B. 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
(Partnership)
By: Winthrop Financial Co., Inc.
A General Partner
By: /s/ Edward V. Williams
Edward V. Williams
Chief Financial Officer
By: /s/ Michael Ashner
Michael Ashner
Chief Executive Officer
Dated: November 14, 1996
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information
extracted from unaudited financial statements for the
nine month period ending September 30, 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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<EXCHANGE-RATE> 1
<CASH> 190895
<SECURITIES> 0
<RECEIVABLES> 4149
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 195044
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 195044
<TOTAL-LIABILITY-AND-EQUITY> 195044
<SALES> 0
<TOTAL-REVENUES> 92804
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 739
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 92065
<INCOME-TAX> 0
<INCOME-CONTINUING> 92065
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 92065
<EPS-PRIMARY> 154.00
<EPS-DILUTED> 00.00
</TABLE>
