UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q/A
(Mark one)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the period ended March 31, 1995
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 0-13415
CONSOLIDATED RESOURCES HEALTH CARE FUND II
(Exact name of registrant as specified in its charter)
Georgia 58-1542125
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) (identification No.)
7000 Central Parkway, Suite 970, Atlanta, Georgia 30328
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 404-698-9040
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,
and (2) has been subject to such filing requirements for the past
90 days. Yes x No
THERE ARE NO EXHIBITS.
PAGE ONE OF 8 PAGES.
PART I. FINANCIAL INFORMATION
CONSOLIDATED RESOURCES HEALTH CARE FUND II
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
1995 1994
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 1,022,673 $ 1,196,256
Accounts receivable, net of
allowance for doubtful accounts
of $43,636 and $39,850 538,807 586,929
Prepaid expenses and other 65,676 108,229
Total current assets 1,627,156 1,891,414
Property and equipment
Land 179,341 179,341
Buildings and improvements 6,206,414 6,187,000
Equipment and furnishings 439,391 435,826
6,825,146 6,802,167
Accumulated depreciation and amortization (3,070,862) (2,977,111)
Net property and equipment 3,754,284 3,825,056
Other
Restricted escrows and other deposits 297,315 239,657
Deferred loan costs, net of
accumulated amortization
of $9,407 and $8,369 23,443 23,701
Total other assets 320,758 263,358
$ 5,702,198 $ 5,979,828
LIABILITIES AND PARTNERS' DEFICIT
Current liabilities:
Current maturities of long-term debt $ 59,009 $ 57,886
Accounts payable 319,638 373,786
Accrued expenses 79,388 108,515
Accrued management fees 696,527 702,510
Other liabilities 298,392 343,183
Total current liabilities 1,452,954 1,585,880
Advances from former affilates (Note 4) - 5,651,854
Long-term obligations,
less current maturities 4,311,125 4,326,316
Total liabilities 5,764,079 11,564,050
Partners' equity (deficit) :
Limited partners 146,164 (5,149,283)
General partners (208,045) (434,939)
Total partners' deficit (61,881) (5,584,222)
$ 5,702,198 $ 5,979,828
See accompanying notes to consolidated financial statements 2
CONSOLIDATED RESOURCES HEALTH CARE FUND II
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended March 31,
1995 1994
Revenue:
Operating revenue $1,542,352 $1,472,814
Interest income 10,845 8,392
Total revenue 1,553,197 1,481,206
Expenses:
Operating expenses 1,346,285 1,233,942
Depreciation and amortization 94,007 91,975
Interest 82,150 83,227
Partnership adminstration costs 10,268 14,217
Total operating costs and expenses 1,532,710 1,423,361
Income before extraordinary gain 20,487 57,845
Extraordinary gain on settlement
of advances (Note 4) 5,651,854 -
Net income $5,672,341 $ 57,845
Net income per L.P. unit
Income before extraordinary gain $ 1.31 $ 3.70
Extraordinary gain on settlement
of advances 361.72 -
Net income per L.P. unit $ 363.03 $ 3.70
L.P. units outstanding 15,000 15,000
See accompanying notes to consolidated financial statements 3
CONSOLIDATED RESOURCES HEALTH CARE FUND II
CONSOLIDATED STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
(Unaudited)
Total
Partners'
Limited General Deficit
Balance, at Demember 31, 1993 $(5,327,139) $ (442,350) $(5,769,489)
Net income 55,531 2,314 57,845
Balance, at March 31, 1994 $(5,271,608) $ (440,036) $(5,711,644)
Balance, at December 31, 1994 $(5,149,283) $ (434,939) $(5,584,222)
Net income 5,445,447 226,894 5,672,341
Distribution (150,000) - (150,000)
Balance, at March 31,1995 $ 146,164 $ (208,045) $ (61,881)
See accompanying notes to consolidated financial statements 4
CONSOLIDATED RESOURCES HEALTH CARE FUND II
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended March 31,
1995 1994
Operating Activities:
Cash received from residents and
government agencies $ 1,590,474 $ 1,576,634
Cash paid to suppliers
and employees (1,448,047) (1,253,123)
Cash paid into restricted escrows (57,658) (28,436)
Interest received 10,845 8,392
Interest paid (82,152) (83,227)
Cash provided by operating 13,462 220,240
Investing Activities:
Additions to property
and equipment (22,980) (19,239)
Financing Activities:
Principle payments on long- (14,068) (16,166)
term debt
Distribution (150,000) -
Cash used in financing activities (164,068) (16,166)
Net increase (decrease) in cash
and cash equivalents (173,586) 184,835
Cash and cash equivalents, beginning
of period 1,196,256 1,083,173
Cash and cash equivalents,
end of period $ 1,067,861 $ 1,268,009
See accompanying notes to consolidated financial statements 5
CONSOLIDATED RESOURCES HEALTH CARE FUND II
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended March 31,
1995 1994
Reconciliation of Net Income to cash
Provided by Operating Activities:
Net income $ 5,672,341 $ 57,845
Adjustments to reconcile net income
to cash provided by
operating activities:
Depreciation and amortization 94,007 91,975
Gain on settlement of advances (5,651,854) -
Changes in assets and liabilities
Accounts receivable 48,122 103,820
Restricted escrows (57,658) (28,436)
Other current assets 42,553 15,201
Accounts payable and
accrued liabilities (134,049) (20,165)
Cash provided by operating activities $ 13,462 $ 220,240
See accompanying notes to consolidated financial statements 6
CONSOLIDATED RESOURCES HEALTH CARE FUND II
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1995
NOTE 1.
The financial statements are unaudited and reflect all
adjustments (consisting only of normal recurring adjustments)
which are, in the opinion of management, necessary for a fair
presentation of the Partnership's financial position and
operating results for the interim periods. The results of
operations for the three months ended March 31, 1995, are not
necessarily indicative of the results to be expected for the year
ending December 31, 1995.
NOTE 2.
The consolidated financial statements should be read in
conjunction with the consolidated financial statements and the
notes thereto contained in the Partnership's Annual Report on
Form 10-K for the year ended December 31, 1994, as filed with the
Securities and Exchange Commission, a copy of which is available
upon request by writing to WelCare Service Corporation-II (the
"Managing General Partner"), at 7000 Central Parkway, Suite 970,
Atlanta, Georgia 30328.
NOTE 3.
A summary of compensation paid to or accrued for the benefit of
the Partnership's general partners and their affiliates and
amounts reimbursed for costs incurred by these parties on the
behalf of the Partnership are as follows:
Three Months Ended
March 31,
1995 1994
Charged to costs and expenses:
Property management and oversight
management fees . . . . . . . . . . $20,711 $19,688
Financial accounting, data processing,
tax reporting, legal and compliance,
investor relations and supervision
of outside services. . . . . . . . $10,268 $ 6,523
NOTE 4.
In November 1990, the Parnership filed claims against Southmark
Corporation ("Southmark"), in the Bankruptcy Court. In response
to the partnership's filing, Southmark filed suit against the
Partnership in August of 1991. The Parntership and Southmark
reached a settlement of this litigation and the partnership
received a nonappealable court order approving the settlement in
April 1994.
During the first quarter of 1995, the Partnership recognized a
gain on the settlement of advances as all litigation issues have
been resolved with Southmark. Prior to the settlement, Southmark
and the Corporate General Partner of the Partnership each
asserted their position with respect to operating advances
made to the Partnership prior to 1990.
7
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.
CONSOLIDATED RESOURCES HEALTH CARE FUND II
By: WELCARE CONSOLIDATED RESOURCES
CORPORATION OF AMERICA
Corporate General Partner
Date: June 22, 1995 By: /s/ J. Stephen Eaton
J. Stephen Eaton
Sole Director and
Principal Executive Officer of
the Corporate General Partner
Date: June 22, 1995 By: /s/ Alan C. Dahl
Alan C. Dahl Principal Financial
Officer of the Corporate General
Partner
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