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 September 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
SEPTEMBER 30, 1995 AND 1994
<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
INDEX
Financial Statements: PAGE
Balance Sheet - September 30, 1995 and December 31, 1994 2
Statement of Operations - Nine Months Ended
September 30, 1995 and 1994 3
Statement of Changes in Partners' Equity -
Nine Months Ended September 30, 1995 and 1994 4
Statement of Cash Flows - Nine Months Ended
September 30, 1995 and 1994 5
Notes to Financial Statements 6
Management Discussion and Analysis 7 - 8
Other Information and Signatures 9 - 10
<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
BALANCE SHEET
SEPTEMBER 30, 1995 AND DECEMBER 31, 1994
----------------------------------------
9/30/95 12/31/94
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ASSETS
Current Assets:
Cash and temporary investments $ 430,837 $ 564,087
Accounts receivable 44,750 52,948
Prepaid expenses 42,785 41,248
--------- ---------
Total current assets 518,372 658,283
Property and Equipment:
Buildings 4,077,604 4,077,604
Furniture and equipment 1,214,710 1,007,347
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5,292,314 5,084,951
Accumulated depreciation (2,552,966) (2,362,857)
--------- ---------
Property and equipment, Net 2,739,348 2,722,094
--------- ---------
Other Assets 31,294 31,294
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Total Assets $ 3,289,014 $ 3,411,671
========= =========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 206,652 $ 210,330
--------- ---------
Total liabilities 206,652 210,330
Contingent Liabilities (See Note 1)
Partners' Equity:
General Partners 4,201 2,901
Limited Partners 3,078,161 3,198,440
--------- ---------
Total partners' equity 3,082,362 3,201,341
--------- ---------
Total Liabilities and Partners' Equity $ 3,289,014 $ 3,411,671
========= =========
The accompanying notes are an integral part of the financial statements.
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<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
--------------------------------------------
Three Nine Three Nine
Months Months Months Months
Ended Ended Ended Ended
9/30/95 9/30/95 9/30/94 9/30/94
------- ------- ------- -------
Income:
Hotel room $ 665,332 $ 1,915,051 $ 622,504 $ 1,932,777
Restaurant 159,905 482,968 166,580 527,025
Telephone and vending 16,701 44,478 16,483 45,254
Interest 3,186 9,847 3,582 10,292
Other 26,493 50,311 12,722 26,922
--------- --------- --------- ---------
Total Income 871,617 2,502,655 821,871 2,542,270
--------- --------- --------- ---------
Expenses:
Hotel and restaurant
operating (Note 2) 713,024 2,001,159 688,715 1,997,577
General and admin-
istration 12,067 49,661 9,161 47,588
Depreciation and
amortization 73,652 197,891 64,183 194,487
Property management fe 42,507 123,916 40,911 126,617
--------- --------- --------- ---------
Total Expenses 841,250 2,372,627 802,970 2,366,269
--------- --------- --------- ---------
Net Income (Loss) $ 30,367 $ 130,028 $ 18,901 $ 176,001
========= ========= ========= =========
Net Income (Loss) Allocable
to General Partners $304 $1,300 $189 $1,760
========= ========= ========= =========
Net Income (Loss) Allocable
to Limited Partners $30,063 $128,728 $18,712 $174,241
========= ========= ========= =========
Net Income (Loss) per
Partnership Unit $3.37 $14.41 $2.09 $19.51
========= ========= ========= =========
Distributions to Limited
Partners per Partnership
Unit $9.20 $27.60 $9.20 $25.20
========= ========= ========= =========
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 NINE MONTHS ENDED SEPTEMBER 30, 1995
--------------------------------------------
1995 1994
--------- ---------
General Partners:
Balance at beginning of year $ 2,901 $ 1,016
Net income (loss) 1,300 1,760
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Balance at end of period 4,201 2,776
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Limited Partners:
Balance at beginning of year 3,198,440 3,322,212
Net income (loss) 128,728 174,241
Distributions to limited partners (249,007) (227,354)
--------- ---------
Balance at end of period 3,078,161 3,269,099
--------- ---------
Total Partners' Equity $ 3,082,362 $ 3,271,875
========= =========
The accompanying notes are an integral part of the financial statements.
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<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
--------------------------------------------
1995 1994
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Cash flows from operating activities:
Received from hotel and restaurant revenues $ 2,502,974 $ 2,500,352
Expended for hotel and restaurant operation
and general and administrative expenses (2,177,708) (2,222,107)
Interest received 7,880 9,953
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Net cash provided (used) by operating activities 333,146 288,198
Cash flows from investing activities:
Purchases of property and equipment (218,389) (44,155)
Proceeds from sale of equipment 1,000 0
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Net cash provided (used) by investing activities (217,389) (44,155)
Cash flows from financing activities:
Distributions paid to limited partners (249,007) (227,354)
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Net cash provided (used) by operating activities (249,007) (227,354)
Net increase (decrease) in cash
and temporary investments (133,250) 16,689
Cash and Temporary Investments:
Beginning of year 564,087 582,934
--------- ---------
End of Period $ 430,837 $ 599,623
========= =========
Reconciliation of net income (loss) to net cash provided (used) by operations:
Net income (loss) $ 130,028 $ 176,001
--------- ---------
Adjustments to reconcile net income to
net cash used by operating activities:
Depreciation and amortization 197,891 194,487
(Gain) loss on disposition of property and 2,235
(Increase) decrease in accounts receivable 8,198 (31,965)
(Increase) decrease in prepaid expenses (1,536) (7,633)
Increase (decrease) in accounts payable
and accrued liabilities (3,670) (42,692)
--------- ---------
Total adjustments 203,118 112,197
--------- ---------
Net cash provided (used) by
operating activities $ 333,146 $ 288,198
========= =========
The accompanying notes are an integral part of the financial statements.
-5-
<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 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 $ 123,916
In February, 1991 the Partnership terminated its franchise and its affiliation
with 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 Nine Three Nine
Months Months Months Months
Ended Ended Ended Ended
9/30/95 9/30/95 9/30/94 9/30/94
--------- --------- --------- ---------
Salaries and related expen $ 199,428 $ 608,305 $ 212,391 $ 637,223
Cost of food and beverage 58,640 172,350 54,324 189,299
Rent 78,700 229,381 75,504 233,671
Franchise and advertising 63,193 186,086 63,883 197,077
Utilities 73,993 169,887 77,657 182,196
Allocated costs, mainly indirect
salaries 45,053 131,867 42,369 122,868
Other operating expenses 194,017 503,283 162,587 435,243
--------- --------- --------- ---------
Total hotel and restaurant
operating expenses $ 713,024 $2,001,159 $ 688,715 $1,997,577
========= ========= ========= =========
The following additional material contingencies are required to be restated in
interim reports under federal securities law: None.
-6-
<PAGE>
FAMOUS HOST LODGING V, LTD.
(A California Limited Partnership)
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
SEPTEMBER 30, 1995
===============================================
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Partnership has current assets of $518,372 and current liabilities
of $206,652. The excess of current assets over current liabilities constitutes
an operating reserve of $311,720. 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 $133,250 for
the nine months ending September 30, 1995 (after $249,007 of distributions 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 $57,452 on such expenditures during the nine
months ended September 30, 1995. The amount actually expended for such
expenditures was $266,348, of which $218,388 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 were replaced.
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 current 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, and to revert to approximately the 3% guidelin3
in succeeding years.
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.
-7-
<PAGE>
FAMOUS HOST LODGING V, LTD.
(A California Limited Partnership)
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
(Continued)
SEPTEMBER 30, 1995
===============================================
RESULTS OF OPERATIONS
- ---------------------
The following is a comparison of operating results for the periods
ended September 30, 1995 and September 30, 1994.
1995 1994
-------- -------
Occupancy
Three months ended September 30 80.1% 77.2%
Nine months ended September 30 78.0% 82.1%
Average Room Rate
Three months ended September 30 $61.05 $59.20
Nine months ended September 30 $60.80 $58.30
Total income decreased $39,615 or 1.6%. This decline was realized in
the first quarter of the fiscal year. Total income increased $49,746 during
the third quarter as compared to the corresponding period of the previous
fiscal year. Hotel room revenues decreased $17,726 (0.9%) and increased $42,828
(6.9%) for the comparative nine and three month periods, respectively.
A $44,057 reduction in restaurant sales during the nine month period
covered by this report as compared to the corresponding period of the previous
fiscal year 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 are substantially unchanged on a comparative basis. Banquet business
generated from local residents has declined on a comparative basis.
Total expenditures decreased $6,358 or 0.3%. The reduced expenses
reflect the decline in hotel occupancy and the reduced restaurant traffic.
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.
-8-
<PAGE>
PART II. OTHER INFORMATION
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Item 1. Legal Proceedings
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None
Item 2. Changes in Securities
---------------------
None
Item 3. Defaults upon Senior Securities
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None
Item 4. Submission of Matters
---------------------
None
Item 5. Other Information
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None
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
None
-9-
<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.
11-13-95 By /S/ David P. Grotewohl
-------------------------
Date David P. Grotewohl,
President of Grotewohl
Management Services, Inc.,
Managing General Partner
11-13-95 By /S/ David P. Grotewohl
-------------------------
Date David P. Grotewohl,
Chief Financial Officer
-10-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 430,837
<SECURITIES> 0
<RECEIVABLES> 44,750
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 518,372
<PP&E> 5,292,314
<DEPRECIATION> 2,552,966
<TOTAL-ASSETS> 3,289,014
<CURRENT-LIABILITIES> 206,652
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 3,082,362
<TOTAL-LIABILITY-AND-EQUITY> 3,289,014
<SALES> 2,442,497
<TOTAL-REVENUES> 2,502,655
<CGS> 2,001,159
<TOTAL-COSTS> 2,001,159
<OTHER-EXPENSES> 371,468
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 130,028
<INCOME-TAX> 0
<INCOME-CONTINUING> 130,028
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 130,028
<EPS-PRIMARY> 14.41
<EPS-DILUTED> 14.41
</TABLE>
