SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of
The Securities Exchange Act of 1934
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For the Period ended June 30, 1995
Commission File 2-88942
FAMOUS HOST LODGING V, L.P.
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(Exact name of registrant as specified in its charter
CALIFORNIA 94 - 2933595
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2030 J Street
Sacramento, California 95814
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Address of principal executive offices Zip Code
Registrant's telephone number,
including area code (916) 442 - 9183
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 XX No
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<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
FINANCIAL STATEMENTS
JUNE 30, 1995 AND 1994
<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
INDEX
Financial Statements: PAGE
Balance Sheet - June 30, 1995 and December 31, 1994 2
Statement of Operations - Six Months Ended
June 30, 1995 and 1994 3
Statement of Changes in Partners' Equity -
Six Months Ended June 30, 1995 and 1994 4
Statement of Cash Flows - Six Months Ended
June 30, 1995 and 1994 5
Notes to Financial Statements 6
Management Discussion and Analysis 7 - 9
Other Information and Signatures 10 - 11
<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
BALANCE SHEET
JUNE 30, 1995 AND DECEMBER 31, 1994
6/30/95 12/31/94
--------- ----------
ASSETS
------
Current Assets:
Cash and temporary investments $ 474,415 $ 564,087
Accounts receivable 47,717 52,948
Prepaid expenses 47,925 41,248
----------- -----------
Total current assets 570,057 658,283
Property and Equipment:
Buildings 4,077,604 4,077,604
Furniture and equipment 1,143,314 1,007,347
----------- -----------
5,220,918 5,084,951
Accumulated depreciation (2,479,847) (2,362,857)
----------- -----------
Property and equipment, Net 2,741,071 2,722,094
Other Assets 31,294 31,294
----------- -----------
Total Assets $3,342,422 $3,411,671
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
--------------------------------
Current Liabilities:
Accounts payable and accrued liabilities $ 207,426 $ 210,330
----------- -----------
Total liabilities 207,426 210,330
----------- -----------
Contingent Liabilities (See Note 1)
Partners' Equity:
General Partners 3,898 2,901
Limited Partners 3,131,098 3,198,440
----------- -----------
Total partners' equity 3,134,996 3,201,341
----------- -----------
Total Liabilities and Partners' Equity $3,342,422 $3,411,671
=========== ===========
The accompanying notes are an integral part of the financial statements.
-2-
<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1995
Three Six Three Six
Months Months Months Months
Ended Ended Ended Ended
6/30/95 6/30/95 6/30/94 6/30/94
Income: --------- --------- --------- ---------
Hotel room $ 660,249 $1,249,719 $ 661,289 $1,310,273
Restaurant 173,141 323,063 175,555 360,445
Telephone and vending 14,055 27,777 13,968 28,771
Interest 3,651 6,660 3,291 6,710
Other 10,594 23,818 7,333 14,200
--------- --------- --------- ---------
Total Income 861,690 1,631,037 861,436 1,720,399
Income: --------- --------- --------- ---------
Expenses:
Hotel and restaurant
operating (Note 2) 655,168 1,288,135 665,290 1,308,863
General and admin-
istration 13,112 37,594 9,478 38,427
Depreciation and
amortization 64,005 124,239 65,326 130,304
Property management fees 42,946 81,409 42,915 85,706
Total Expenses 775,231 1,531,377 783,009 1,563,300
--------- --------- --------- ---------
Net Income (Loss) $ 86,459 $ 99,660 $ 78,427 $ 157,099
========= ========= ========= =========
Net Income (Loss) Allocable to
General Partners $865 $997 $784 $1,571
========= ========= ========= =========
Net Income (Loss) Allocable to
Limited Partners $85,594 $98,663 $77,643 $155,528
========= ========= ========= =========
Net Income (Loss) per
Partnership Unit $9.58 $11.05 $8.69 $17.41
========= ========= ========= =========
Distributions to Limited Partners
per Partnership Unit $9.20 $18.40 $8.00 $16.00
========= ========= ========= =========
The accompanying notes are an integral part of the financial statements.
-3-
<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
STATEMENT OF CHANGES IN PARTNERS' EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 1995
1995 1994
---- ----
General Partners:
Balance at beginning of year $ 2,901 $ 1,016
Net income (loss) 997 1,571
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Balance at end of period 3,898 2,587
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Limited Partners:
Balance at beginning of year 3,198,440 3,322,212
Net income (loss) 98,663 155,528
Distributions to limited partners (166,005) (144,352)
---------- ----------
Balance at end of period 3,131,098 3,333,388
---------- ----------
Total Partners' Equity $3,134,996 $3,335,975
========== ==========
The accompanying notes are an integral part of the financial statements.
-4-
[DATE]
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1995
1995 1994
---- ----
Cash flows from operating activities:
Received from hotel and restaurant revenues $1,630,208 $1,688,420
Expended for hotel and restaurant operation
and general and administrative expenses (1,414,748) (1,461,864)
Interest received 6,061 6,416
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Net cash provided (used) by operating activities 221,521 232,972
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Cash flows from investing activities:
Purchases of property and equipment (145,188) (25,282)
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Net cash provided (used) by investing activities (145,188) (25,282)
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Cash flows from financing activities:
Distributions paid to limited partners (166,005) (144,352)
---------- ----------
Net cash provided (used) by operating activities (166,005) (144,352)
---------- ----------
Net increase (decrease) in cash
and temporary investments (89,672) 63,338
Cash and Temporary Investments:
Beginning of year 564,087 582,934
---------- ----------
End of Period $ 474,415 $ 646,272
========== ==========
Reconciliation of net income (loss) to net cash provided (used) by
operating activities:
Net income (loss) $ 99,660 $ 157,099
Adjustments to reconcile net income to ---------- ---------
net cash used by operating activities:
Depreciation and amortization 124,239 130,304
(Gain) loss on disposition of property
and equipment 1,972 -
(Increase) decrease in accounts receivable 5,232 (25,563)
(Increase) decrease in prepaid expenses (6,677) (3,185)
Increase (decrease) in accounts payable
and accrued liabilities (2,905) (25,683)
---------- ----------
Total adjustments 121,861 75,873
---------- ----------
Net cash provided (used) by
operating activities $ 221,521 $ 232,972
========== ==========
The accompanying notes are an integral part of the financial statements.
-5-
[DATE]
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995
Note 1:
-------
The attached interim financial statements include all adjustments which are,
in the opinion of management, necessary to a fair statement of the results
for the period presented.
Users of these interim financial statements should refer to the audited
financial statements for the year ended December 31, 1994 for a complete
disclosure of significant accounting policies and practices and other detail
necessary for a fair presentation of the financial statements.
In accordance with the partnership agreement, the following information is
presented related to fees paid to the General Partners or affiliates for the
period.
Property Management Fees $ 81,409
In February, 1991 the Partnership terminated its franchise and its affiliation
with Super 8 Motels, Inc. and began operating as a Holiday Inn. Accordingly,
no franchise or advertising fees have been paid to the General Partners or
their affiliates for the period.
Partnership management fees and subordinated incentive distributions are
contingent in nature and none have been accrued or paid during the current
period.
Note 2:
-------
The following table summarizes the major components of hotel operating
expenses for the periods reported:
Three Six Three Six
Months Months Months Months
Ended Ended Ended Ended
6/30/95 6/30/95 6/30/94 6/30/94
-------- --------- -------- --------
Salaries and related expenses $ 199,653 $ 407,233 $ 206,771 $ 421,834
Cost of food and beverage 58,275 113,710 70,630 134,975
Rent 79,438 150,680 79,453 158,166
Franchise and advertising 66,857 122,893 67,569 133,194
Utilities 49,060 95,893 50,543 104,538
Allocated costs, mainly indirect
salaries 44,551 86,813 40,659 80,499
Other operating expenses 157,334 310,913 149,665 275,657
-------- --------- -------- --------
Total hotel and restaurant
operating expenses $ 655,168 $1,288,135 $ 665,290 $1,308,863
======== ========= ======== =========
The following additional material contingencies are required to be restated
in interim reports under federal securities law: None.
-6-
<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
JUNE 30, 1995
LIQUIDITY AND CAPITAL RESOURCES
The Partnership has current assets of $570,057 and current
liabilities of $207,426. The excess of current assets over
current liabilities constitutes an operating reserve of
$362,631. This amount exceeds the $276,800 reserve target set
by the General Partners. The reserve target is equal to 5% of
the adjusted capital contribution as defined in the partnership
agreement.
The Statement of Cash Flows shows negative cash flows of
$89,672 for the six months ending June 30, 1995 (after a
$166,005 distribution to the Limited Partners). This negative
cash flow is due to extraordinary expenditures for capital
assets and renovation.
The General Partners have a target guideline for equipment
replacement and renovation equal to 3% of guest room revenues.
Under this guideline, the Partnership would have spent $37,492
on such expenditures during the six months ended June 30, 1995.
The amount actually expended for such expenditures was $164,302,
of which $145,188 were capital expenditures. These
replacements include $13,073 for a new point-of-sale computer
system for the restaurant and $15,273 for additional restaurant
signs. The public area carpets, which must be replaced on a
three to five year cycle needed replacement. In addition, the
Holiday Inn franchise agreement requires that electronic locks,
costing approximately $70,000, be installed in all guest rooms
before the end of the fiscal year, of this $17,786 has been
spent. In order to improve restaurant capture of hotel guest
business, an improved entrance to the restaurant is being
installed at an estimated cost of $75,000. These expenditures,
in addition to the more common and recurring expenditures for
carpet, drapes, lamps, lamp shade and television replacement,
will cause total renovations and replacements to exceed the 3%
target during the current fiscal year ending December 31, 1995.
The General Partners anticipate that such expenditures for the
fiscal year will amount to approximately $331,302, or about 16%
of guest room revenue, ant to revert to approximately the 3%
guideline in succeeding years.
-7-
<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
(Continued)
JUNE 30, 1995
NEW ACCOUNTING STANDARDS
SFAS No. 121, Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets to be Disposed OF, requires
the Partnership to disclose information about potential
impairment to the value of long-lived assets. The Partnership
is not required to adopt and does not currently plan to adopt
SFAS No. 121 until its fiscal year ending December 31, 1996.
The Partnership does not expect to make any disclosures about
impairment of long-lived assets under SFAS No. 121.
RESULTS OF OPERATIONS
The following is a comparison of operating results for the
periods ended June 30, 1995 and June 30, 1994.
1995 1994
Occupancy
Three months ended June 30 79.6% 83.9%
Six months ended June 30 76.9% 84.5%
Average Room Rate
Three months ended June 30 $61.60 $58.55
Six months ended June 30 $60.66 $57.88
Total income decreased $89,362 or 5.2%. This decline was
realized in the first quarter of the fiscal year. Total income
increased $254 during the second quarter as compared to the
corresponding period of the previous fiscal year. Hotel room
revenues decreased $60,554 (4.6%) and $1,040 (0.2%) for the
comparative six and three month periods respectively. During
the three months ended June 30, 1995, the decrease in occupancy
was substantially offset by increased room rates. Reductions in
both corporate and military business have been offset primarily
by higher-rate leisure business.
A $37,382 reduction in restaurant sales was due to reduced
occupancy in the first calendar quarter and to a poor economic
climate in the Barstow area. The sales for the last three
months area substantially unchanged on a comparative basis.
Banquet business generated from local residents has declined on
a comparative basis.
Total expenditures decreased $31,923 or 2.0%. The reduced
expenses reflect the decline in hotel occupancy and the reduced
restaurant traffic.
-8-
<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
(Continued)
JUNE 30, 1995
FUTURE TRENDS
The General Partners expect the hotel to achieve improved
profitability during 1995 as compared to 1994. The changes in
restaurant personnel and procedures which have been adopted are
expected to continue to bring improved results. The General
Partners expect that these changes will result in a reduction in
the net loss experienced by the restaurant operation.
In the opinion of management, these financial statements
reflect all adjustments which were necessary to a fair statement
of results for the interim periods presented. All adjustments
are of a normal recurring nature.
-9-
<PAGE>
PART II. OTHER INFORMATION
----------------------------
Item 1. Legal Proceedings
-----------------
None
Item 2. Changes in Securities
---------------------
None
Item 3. Defaults upon Senior Securities
-------------------------------
None
Item 4. Submission of Matters
---------------------
None
Item 5. Other Information
-----------------
None
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
None
-10-
<PAGE>
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.
FAMOUS HOST LODGING V, L.P.
8-10-95 By /S/ David P. Grotewohl
-------------------------
Date David P. Grotewohl,
President of Grotewohl
Management Services, Inc.,
Managing General Partner
8-10-95 By /S/ David P. Grotewohl
-------------------------
Date David P. Grotewohl,
Chief Financial Officer
-11-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 474,415
<SECURITIES> 0
<RECEIVABLES> 47,717
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 570,057
<PP&E> 5,220,918
<DEPRECIATION> 2,479,847
<TOTAL-ASSETS> 3,342,422
<CURRENT-LIABILITIES> 207,426
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 3,134,996
<TOTAL-LIABILITY-AND-EQUITY> 3,342,422
<SALES> 1,600,559
<TOTAL-REVENUES> 1,631,037
<CGS> 1,288,135
<TOTAL-COSTS> 1,288,135
<OTHER-EXPENSES> 243,242
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 99,660
<INCOME-TAX> 0
<INCOME-CONTINUING> 99,660
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 99,660
<EPS-PRIMARY> 11.05
<EPS-DILUTED> 11.05
</TABLE>
