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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 September 30, 2000 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)
Five Cambridge Center, Cambridge, MA 02142
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(Address of principle executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 234-3000
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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 NO X
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PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
PART 1 - FINANCIAL INFORMATION
ITEM 1. - FINANCIAL STATEMENTS
BALANCE SHEETS
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September December
30, 2000 31, 1999
(Unaudited) (Audited)
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ASSETS
Assets
Cash and cash equivalents $ 271,665 $ 433,334
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Total assets $ 271,665 $ 433,334
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LIABILITIES AND PARTNERS' CAPITAL
Liabilities and partners' capital
Partners' capital $ 271,665 $ 433,334
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Total liabilities and partners' capital $ 271,665 $ 433,334
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See notes to financial statements
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PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
STATEMENT OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
For the Three Months For the Nine Months Ended
Ended September 30, September 30,
2000 1999 2000 1999
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<S> <C> <C> <C> <C>
INCOME
Interest $ 4,398 $ 2,094 $ 12,202 $ 7,255
Distribution from operating
partnership - - 225,210 200,036
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4,398 2,094 237,412 207,291
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EXPENSES
Professional fees 11,103 - 43,030 -
Other expenses 9,087 6,231 10,160 6,365
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Total operating expenses 20,190 6,231 53,190 6,365
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Net income (loss) $ (15,792) $ (4,137) $ 184,222 $ 200,926
========= ========= ========== =========
Net income per unit of limited
partnership interest outstanding $ (26) $ (7) $ 309 $ 337
========= ========= ========== =========
(590 units issued and outstanding)
</TABLE>
See notes to financial statements
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PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
<TABLE>
<CAPTION>
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Linnaeus-Phoenix Investor Total
For the Nine Months Ended September Winthrop Financial Associates Limited Limited Partners'
30, 2000 and 1999 (Unaudited) Co., Inc. Partnership Partners Capital
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<S> <C> <C> <C> <C>
Balance, December 31, 1999 $ (269,914) $ (571,823) $ 1,275,071 $ 433,334
Net income 921 921 182,380 184,222
Distributions (1,750) (1,750) (346,502) (350,002)
Contributions - - 4,111 4,111
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Balance, September 30, 2000 $ (270,743) $ (572,652) $ 1,115,060 $ 271,665
============ ============ ============= ===========
Balance, December 31, 1998
(270,262) (572,171) 1,202,447 360,014
Net income 1,005 1,005 198,916 200,926
Distributions (1,625) (1,625) (321,750) (325,000)
Contributions - - 3,817 3,817
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Balance, September 30, 1999 $ (270,882) $ (572,791) $ 1,083,430 $ 239,757
============ ============ ============= ===========
</TABLE>
See notes to financial statements
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PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
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For the Nine Months Ended 2000 1999
September 30, 2000 and 1999 (Unaudited)
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Cash flow from operating activities:
Net income $ 184,222 $ 200,926
Adjustments to reconcile net income to
net cash provided by operating activities
Decrease in due from operating partnership - 173,404
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Net cash provided by operating activities
184,222 374,330
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Cash flows from financing activities:
Partner distributions (350,002) (325,000)
Contributions 4,111 3,817
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Net cash used in financing activities (345,891) (321,183)
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Net increase (decrease) in cash and cash equivalents (161,669) 53,147
Cash and cash equivalents at beginning of period 433,334 186,610
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Cash and cash equivalents at end of period $ 271,665 $ 239,757
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See notes to financial statements
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PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(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 Annual Report on
Form 10-KSB for the year ended December 31, 1999.
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, 2000.
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 is not expected to differ from that for financial
reporting purposes.
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PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
The matters discussed in this Form 10-QSB contain certain forward-looking
statements and involve risks and uncertainties (including changing market
conditions, competitive and regulatory matters, etc.) The discussion of the
Partnership's business and results of operations, including forward-looking
statements pertaining to such matters does not take into account the effects of
any changes to the Partnership's business and results of operations.
Accordingly, actual results could differ materially from those protected in the
forward-looking statements as a result of a number of factors, including those
identified herein.
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, 2000 and September 30, 1999, the
Operating Partnership made distributions to the Partnership of $225,210 and
$200,036 on statement of cash flows, respectively. 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.
The Partnership's liquidity based on cash and cash equivalents decreased to
$271,665 at September 30, 2000 as compared to $433,334 at December 31, 1999.
This decrease is the result of $345,891 of net cash used in financing activities
exceeding $184,222 of cash provided by operating activities. Cash used in
financing activities consisted of $350,002 of distributions to partners
partially offset by $4,111 of contributions. Future distributions to limited
partners are contingent upon the receipt by the Partnership of distributions
from the Operating Partnership.
Results of Operations
The Partnership's net income (loss) for the three and nine months ended
September 30, 2000 was ($15,792) and $184,222, respectively, compared to
($4,137) and $200,926 for the comparable periods ended September 1999. The
decreases in net income are attributable to an increase in total expenses which
more than offset an increase in total income. Total income increased for the
nine month comparable period primarily as a result of increased distributions
from the Operating Partnership. In addition, interest income increased for both
the three and nine month comparable
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PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
periods due to increased cash balances. The increase in expenses was due to
increases in professional fees and other expenses.
PART II - OTHER INFORMATION
Item 6. Exhibit and reports on Form 8-K
No report on Form 8-K was required to be filed during the period
a) Exhibits
Exhibit 27, Financial Data Schedule filed as an Exhibit to this
report
b) Reports on Form 8-K
No reports on Form 8-K were required to be filed during the three
months ended September 30, 2000
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PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
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.
PRESIDENTIAL ASSOCIATES I
LIMITED PARTNERSHIP
(Partnership)
By: Winthrop Financial Co., Inc.
One of its General Partners
Date: November 1, 2000 By: /s/ Thomas C. Staples
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Thomas C. Staples
Chief Financial Officer
Date: November 1, 2000 By: /s/ Michael L. Ashner
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Michael L. Ashner
Chief Executive Officer
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