UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR PERIOD ENDING MARCH 31, 1997.
Commission File Number:
2-88845-A
Exact name of Registrant as specified in its charter:
Florida Income Fund, L.P.
State or other Jurisdiction of incorporation or organization:
Iowa
I.R.S. Employer Identification Number:
59-2337910
Address of Principal Executive Offices:
12800 University Drive, Ste 675
Fort Myers, FL 33907
Registrant's Telephone Number, including Area Code:
(941) 481-2011
Securities registered pursuant to Section 12(b) of the Act:
None
Securities registered pursuant to Section 12(g) of the Act:
None
The registrant 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 has been subject
to such filing requirements for the past 90 days.<PAGE>
<PAGE>
FLORIDA INCOME FUND, L.P.
INDEX
PART I
FINANCIAL INFORMATION PAGE NO.
Balance Sheets at March 31, 1997
and December 31, 1996 . . . . . . . . . . . . . . . . . .3
Statements of Income for the Three
Months Ended March 31, 1997 and 1996. . . . . . . . . . .4
Statements of Cash Flows for the Three
Months Ended March 31, 1997 and 1996. . . . . . . . . . .5
Notes to Financial Statements . . . . . . . . . . . . . .6
Management's Discussion and Analysis of
Financial Condition and Results of Operations . . . . .6-8
PART II
OTHER INFORMATION
Items 1 through 6 . . . . . . . . . . . . . . . . . . . .9
PART III
Signatures. . . . . . . . . . . . . . . . . . . . . . . 10
COVER PAGE
EXHIBIT 27 - FINANCIAL DATA SCHEDULE
PAGE 2<PAGE>
<PAGE>
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION
FLORIDA INCOME FUND, L.P.
BALANCE SHEETS
(Unaudited)
March 31 Dec. 31
1997 1996
_______________________
<S> <C> <C>
ASSETS
Current Assets
Cash 141,010 334,144
A/R Trade 57,994 54,295
Prepaid Expenses and Other 54,427 86,025
__________ _________
Total Current Assets 253,431 474,464
Rental Properties, Net of Accumulated
Depreciation of $1,591,124 at
03/31/97 and $3,543,798 at 12/31/96 3,256,885 7,544,846
Intangible Assets
Deferred Loan Costs 57,254 70,001
__________ _________
Total Assets 3,567,570 8,089,311
LIABILITIES AND PARTNER'S CAPITAL
Current Liabilities
Current maturities of notes
and mortgages payable 1,668,352 3,183,070
Accounts Payable - Trade 3,392 59,273
Accrued Expenses 3,841 80,249
Customer and Security Deposits 15,290 141,063
Deposit on Sale of Rental Property 0 425,883
__________ _________
Total Current Liabilities 1,690,875 3,889,538
NOTES AND MORTGAGES PAYABLE 0 1,648,231
NOTES AND MORTGAGES PAYABLE TO AFFILIATES 280,000 1,400,000
PARTNERS'S CAPITAL
General Partners Capital (113,913) (113,913)
Limited Partners Capital (2,168,556) 1,265,455
Net Income 3,879,164 0
___________ __________
Total Partners Equity 1,596,695 1,151,542
Total Liabilities and
Partners Capital 3,567,570 8,089,311
See Accompanying Notes to the Financial Statements
</TABLE>
PAGE 3<PAGE>
<PAGE>
<TABLE>
<CAPTION>
FLORIDA INCOME FUND, L.P.
STATEMENTS OF INCOME
(Unaudited)
For Three Months Ended
03/31/97 03/31/96
______________________
<S> <C> <C>
REVENUES:
Sale Proceeds 8,385,000 0
Rental Income 238,514 787,794
Interest Income 13 0
_________ _______
Total Income 8,623,527 787,794
COSTS AND EXPENSES:
Cost of Sales 4,462,275 0
Depreciation 57,411 77,372
Property Expenses 128,852 327,459
Real Estate Taxes 11,808 0
Interest and
Financing costs 81,329 169,428
Other Expense 2,688 8,423
_________ _______
Total Costs and
Expenses 4,744,363 582,682
Net Income 3,879,164 205,112
</TABLE>
See Accompanying Notes to the Financial Statements
PAGE 4<PAGE>
<PAGE>
<TABLE>
<CAPTION>
FLORIDA INCOME FUND, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
For Three Months Ended
03/31/97 03/31/96
______________________
<S> <C> <C>
Cash flows from operating activities
Net Income 3,879,164 205,112
Adjustments to reconcile net income to net
cash provided by operational activities
Cost of Sales 4,230,550 0
Depreciation and Amortization 70,158 85,795
(Increase) decrease in accounts receivables (3,699) (1,923)
(Increase) decrease in prepaid expenses 31,598 (32,844)
Increase (decrease) in accounts
payable and accrued expenses (132,289) 89,494
Increase (decrease) in security deposits (125,773) 8,928
___________ ________
Net cash flows provided by operating activities 7,949,709 354,562
Cash flows from investing activities
Improvements to rental properties 0 (6,937)
___________ ________
Net cash used in investing activities 0 (6,937)
Cash flows from financing activities
Repayments of long term borrowings
to affiliated companies (1,120,000) 0
Repayment of long term borrowings
to unaffiliated companies (3,162,949) (16,841)
Loan origination fees paid -0- 0
Partner distributions paid (3,434,011) (39,463)
Deposit on Sale (425,883) 0
___________ ________
Net cash flows used by financing actvities (8,142,843) (56,304)
Net increase (decrease) in cash (193,134) 291,321
Cash December 31 334,144 72,979
Cash March 31 141,010 364,300
</TABLE>
See Accompanying Notes to the Financial Statements
PAGE 5<PAGE>
<PAGE>
FLORIDA INCOME FUND, L.P.
NOTES TO FINANCIAL STATEMENT
MARCH 31, 1997
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
The accompanying financial statements have been prepared in
accordance with the instructions to Form 10-Q and therefore do
not include all disclosures necessary for a fair presentation of
the Partnerships' financial position, results of operations and
cash flows in conformity with generally accepted accounting
principles, as set forth in the Partnerships' Form 10-K for the
period ended December 31, 1996. In management's opinion, all
adjustments have been made to the financial statements necessary
for a fair presentation of interim periods presented.
NOTE 2 - RELATED PARTY TRANSACTIONS
During the three month period ended March 31, 1997, and March 31,
1996, the Partnership paid $4,754 and $5,162 in Management Fees
to Mariner Capital Management, Inc., the Managing General
Partner, in accordance with the Partnership Agreement. These
expenses are included in the property expenses. The General
Partners and their affiliates are also entitled to reimbursement
of costs (including amounts of any salaries paid to employees or
its affiliates) directly attributable to the operation of the
Partnership that could have been provided by independent parties.
Costs amounting to $11,147 were incurred during the first quarter
of 1997. This compares to $6,450 of costs that were incurred
during the first quarter of 1996.
NOTE 3 - BALANCE SHEET
The Balance Sheet at December 31, 1996, has been taken from the
Audited Financial Statements at that date.
NOTE 4- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity
The Partnership's cash position including interest bearing
deposits at March 31, 1997, was $141,010. This compares to its
cash position of $334,144 at December 31, 1996. At March 31,
1996, the Partnership's cash position was $364,300.
PAGE 6<PAGE>
<PAGE>
Liquidity - Continued
The increase in cash from December 31, 1996, to March 31, 1997,
was primarily due to the following factors. Cash provided by
operations was $7,949,709, payments for property improvements
were $0, principal pay downs of debt totalled $4,282,949.
Partner distributions totalled $3,434,011. The Partnership's
total investment in properties for its portfolio at March 31,
1997, was $4,848,009. This compares to its total property
investment at December 31, 1996 of $11,088,644.
The management company, South Seas Resorts Company (SSRC), an
affiliate of the general partner signed an option agreement to
acquire the Seaside Inn on or before January 1997, at a price of
$6,485,000. This price assumed renovations of $335,000 of which
$330,000 has been funded to date. Since the transaction was
between affiliated companies, the general partner was required to
seek approval from the limited partners of (1) the option terms
and (2) an amendment of the partnership agreement to permit the
sale to an affiliate. That approval was solicited in August 1996.
Once approved the transaction still represented an option,
however SSRC closed on the purchase of this property in January
1997 as reported in an 8-K filed January 15, 1997. The sale
generated approximately $2,725,000 which was available for
distribution to the partners.
The Partnership sold the Villas Plaza to an unrelated purchaser
on March 20, 1997 at a price of $1,900,000 as reported in an 8-K
filed on April 2, 1997. The sale generated approximately
$620,000 which was available for distribution to the partners.
The sale of Seaside Inn and the Villas Plaza resulted in a
material reduction in both partnership assets, partnership debt
and partnership liquidity.
Other than as discussed herein, there are no known trends,
demands, commitments, events or uncertainties that in
management's opinion, will result or are reasonably likely to
result in the registrant's liquidity increasing or decreasing in
any material way.
Capital Resources
The Partnerships outstanding debt as of march 31, 1997 was
$1,948,352. This compares to debt outstanding December 31, 1996
of $6,231,301. The Partnership had $6,282,854 of outstanding
debt at March 31, 1996.
Results of Operations
The Partnership's net income for the three months ended March 31,
1997, was $3,879,164. This compares with net income of $205,112
for the same period a year ago.
The major variances from a year ago are due primarily to the sale
of the two properties referenced above.
PAGE 7<PAGE>
<PAGE>
Results of Operations - Continued
For the three month period ended March 31, 1996, total revenue
increased by $7,835,733 as compared to the same period one year
ago. This increase was primarily attributable to the property
sales.
Corporate Park's and Edison Square's revenue increased mainly due
to increases in lease rates. At March 31, 1997, Corporate Park
was 100% occupied, and Edison Square was 93% occupied.
For the three months ended March 31, 1997, depreciation expense
has decreased by $19,961.
Property expenses decreased $186,799 for the three month period
primarily because of the sales of the Seaside Inn and the Villas
Plaza.
For the three months, interest expense has decreased $88,099
mainly due to a decrease in the amount of outstanding debt.
The Partnership indebtedness decreased by $4,334,502 from the
time period March 31, 1996, to March 31, 1997. As of March 31,
1997, the Partnership had an outstanding debt of $1,948,352
compared to $6,282,854 at March 31, 1996. The Partnership's
outstanding debt as of December 31, 1996, was $6,231,301. Other
expenses decreased $5,735.
Property and equipment has decreased from $11,433,686 at March
31, 1996, to $4,848,009 at March 31, 1997. Property and
equipment was $11,088,644 as of December 31, 1996.
For the quarter ended March 31, 1997, the cash distribution to
partners totalled $3,434,011.
PAGE 8<PAGE>
<PAGE>
PART II
OTHER INFORMATION
FLORIDA INCOME FUND, L.P.
ITEM 1. LEGAL PROCEEDINGS
NONE
ITEM 2. CHANGES IN SECURITIES
NONE
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
NONE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
NONE
ITEM 5. OTHER MATERIALLY IMPORTANT EVENTS
NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
NONE
PAGE 9<PAGE>
<PAGE>
PART III
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.
FLORIDA INCOME FUND, L.P.
MARINER CAPITAL MANAGEMENT, INC.
MANAGING GENERAL PARTNER
(Registrant)
5/13/97 By: /s/ LAWRENCE A. RAIMONDI
--------------------------------
Lawrence A. Raimondi
President, Director and CEO
Mariner Capital Management, Inc.
(Principal Executive Officer)
5/13/97 By: /s/ JOE K. BLACKETER
--------------------------------
Joe K. Blacketer
Secretary/Treasurer
Mariner Capital Management, Inc.
(Principal Financial and Accounting
Officer)
PAGE 10
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 141,010
<SECURITIES> 0
<RECEIVABLES> 57,994
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 253,431
<PP&E> 4,848,009
<DEPRECIATION> 1,591,124
<TOTAL-ASSETS> 3,567,570
<CURRENT-LIABILITIES> 1,690,875
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 3,567,570
<SALES> 8,623,527
<TOTAL-REVENUES> 8,823,527
<CGS> 4,462,275
<TOTAL-COSTS> 4,462,275
<OTHER-EXPENSES> 200,759
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 81,329
<INCOME-PRETAX> 3,879,164
<INCOME-TAX> 0
<INCOME-CONTINUING> (43,561)
<DISCONTINUED> 3,922,725
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,879,164
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
