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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, 1997 Commission File Number 0-12210
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PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
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(exact name of small business issuer as specified in its charter)
Maryland 04-2801764
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
One International Place, Boston, MA 02110
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 330-8600
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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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PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
PART 1 - FINANCIAL INFORMATION
ITEM 1. - FINANCIAL STATEMENTS
STATEMENTS OF OPERATIONS
For the Three Months Ended March 31, 1997 and 1996 1997 1996
(Unaudited) ---- ----
Income
Interest $3,854 $ --
Expenses
Administration fee -- --
Professional fees -- 250
Total operating expenses -- 250
Net income (loss) $3,854 $ (250)
Net income (loss) per unit of limited
partnership interest outstanding $ 6.53 $(0.42)
See Notes to Financial Statements
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PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
BALANCE SHEETS
March 31, 1997 December 31, 1996
(Unaudited) (Audited)
ASSETS
Assets
Cash and cash equivalents $315,671 $319,440
Due from operating partnership 30,771 14,020
Total Assets $346,442 $333,460
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Accounts payable $ 9,128 $ --
Partners' Capital 337,314 333,460
Total Liabilities and Partners' Capital $346,442 $333,460
See Notes to Financial Statements
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PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
For the Three Months Ended 1997 1996
March 31, 1997 and 1996 (Unaudited)
Cash flow from operating activities:
Net income (loss) $ 3,854 $ (250)
Adjustments to reconcile net income (loss) to
net cash used in operating activities:
Change in assets and liabilities:
Increase in accounts payable 9,128 --
Increase in due from operating partnership (16,751) --
Net cash used in operating activities (3,769) (250)
Net decrease in cash and cash equivalents (3,769) (250)
Cash and cash equivalents at beginning of period 319,440 121,409
Cash and cash equivalents at end of period $ 315,671 $ 121,159
See Notes to Financial Statements
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<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN PARTNERS CAPITAL
For the Three Months Ended Winthrop Linnaeus- Investor Limited Total
March 31, 1997 and 1996 Financial Co., Phoenix Partners Partners'
(Unaudited) Inc. Associates Capital
Limited
Partnership
<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) $ 947,666 $ 102,729
Balance December 31, 1996 $ (270,361) $ (572,270) $ 1,176,091 $ 333,460
Net income 19 19 3,816 3,854
Balance, March 31, 1997 $ (270,342) $ (572,251) $ 1,179,907 $ 337,314
</TABLE>
See Notes to Financial Statements
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PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
(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
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PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
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 financial statements be read in conjunction with the
financial statements and notes thereto included in the Partnership's latest
annual report on Form 10-KSB.
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, 1997.
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 costs,
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 1997 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.
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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, 1997, 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 property is sold. However, due to the preferred return required to be paid
to TKI Presidential Partners and the Department of Housing and Urban
Development, it is likely that a sale of the property will not generate
sufficient funds to permit a distribution to the Partnership. Accordingly, it
is anticipated that limited partners will not received a return of their
original investment in the Partnership.
The Partnership's liquidity based on cash and cash equivalents remained
constant at March 31, 1997 as compared to December 31, 1996. 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. During April of 1997 the
Partnership made a distribution to its partners of $200,200.
Results of Operations
Operating results improved by $4,104 for the three months ended March 31, 1997
as compared to the three months ended March 31, 1996 primarily due to interest
income earned on cash reserves which were created by distributions from the
Operating Partnership during 1996.
It is anticipated that the interest income earned in future months will
decrease as a result of the distribution made to partners out of cash reserves
in April of 1997.
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PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a) Ex. 27 - Financial Data Schedule
b) Reports on Form 8-K. No report on Form 8-K was required to be
filed during the period.
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SIGNATURES
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.
PRESIDENTIAL ASSOCIATES I
LIMITED PARTNERSHIP
(Partnership)
By: Winthrop Financial Co., Inc.
One if its General Partners
Date: May 15, 1997 By: /s/Edward V. Williams
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Edward V. Williams
Chief Financial Officer
Date: May 15, 1997 By: /s/Michael L. Ashner
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Michael L. Ashner
Chief Executive Officer
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<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, 1997 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-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<EXCHANGE-RATE> 1
<CASH> 315,671
<SECURITIES> 0
<RECEIVABLES> 30,771
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 346,442
<CURRENT-LIABILITIES> 9,128
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 337,314
<TOTAL-LIABILITY-AND-EQUITY> 346,442
<SALES> 0
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<CGS> 0
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<INCOME-PRETAX> 3,854
<INCOME-TAX> 0
<INCOME-CONTINUING> 3,854
<DISCONTINUED> 0
<EXTRAORDINARY> 0
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<NET-INCOME> 3,854
<EPS-PRIMARY> 6.53
<EPS-DILUTED> 6.53
</TABLE>
