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 March 31, 1996
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
MARCH 31, 1996 AND 1995
<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
INDEX
Financial Statements: PAGE
Balance Sheet - March 31, 1996 and December 31, 1995 2
Statement of Operations - Three Months Ended
March 31, 1996 and 1995 3
Statement of Changes in Partners' Equity -
Three Months Ended March 31, 1996 and 1995 4
Statement of Cash Flows - Three Months Ended
March 31, 1996 and 1995 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
MARCH 31, 1996 AND DECEMBER 31, 1995
3/31/96 12/31/95
---------- ----------
ASSETS
Current Assets:
Cash and temporary investments $ 336,556 $ 286,074
Accounts receivable 44,494 31,138
Prepaid expenses 18,938 36,038
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Total current assets 399,988 353,250
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Property and Equipment:
Buildings 4,077,604 4,077,604
Furniture and equipment 1,294,138 1,287,518
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5,371,742 5,365,122
Accumulated depreciation (2,694,391) (2,622,748)
---------- ----------
Property and equipment, Net 2,677,351 2,742,374
---------- ----------
Other Assets 32,294 32,294
Total Assets $ 3,109,633 $ 3,127,918
========== ==========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 225,901 $ 179,911
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Total liabilities 225,901 179,911
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Contingent Liabilities (See Note 1)
Partners' Equity:
General Partners 3,875 3,688
Limited Partners 2,879,857 2,944,319
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Total partners' equity 2,883,732 2,948,007
---------- ----------
Total Liabilities and Partners' Equity $ 3,109,633 $ 3,127,918
========== ==========
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
THREE MONTHS ENDED MARCH 31, 1996 AND 1995
Three Three
Months Months
Ended Ended
3/31/96 3/31/95
Income: ---------- ----------
Hotel room $ 656,087 $ 589,470
Restaurant 154,748 149,922
Telephone and vending 16,502 13,721
Interest 2,096 3,009
Other 8,301 13,224
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Total Income 837,734 769,346
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Expenses:
Hotel and restaurant
operating (Note 2) 681,353 632,967
General and admin-
istration 22,091 24,482
Depreciation and
amortization 73,743 60,234
Property management fees 41,820 38,463
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Total Expenses 819,007 756,146
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Net Income (Loss) $ 18,727 $ 13,200
========== ==========
Net Income (Loss) Allocable to
General Partners $187 $132
======= =======
Net Income (Loss) Allocable to
Limited Partners $18,540 $13,068
======= =======
Net Income (Loss) per
Partnership Unit $2.05 $1.45
======= =======
Distributions to Limited Partners
per Partnership Unit $9.20 $9.20
======= =======
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 CHANGES IN PARTNERS' EQUITY
THREE MONTHS ENDED MARCH 31, 1996 AND 1995
1996 1995
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General Partners:
Balance at beginning of year $ 3,688 $ 2,901
Net income (loss) 187 132
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Balance at end of period 3,875 3,033
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Limited Partners:
Balance at beginning of year 2,944,319 3,198,440
Net income (loss) 18,540 13,068
Distributions to limited partners (83,002) (83,002)
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Balance at end of period 2,879,857 3,128,506
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Total Partners' Equity $ 2,883,732 $ 3,131,539
========== ==========
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
THREE MONTHS ENDED MARCH 31, 1996 AND 1995
1996 1995
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Cash flows from operating activities:
Received from hotel and restaurant revenues $ 823,545 $ 775,223
Expended for hotel and restaurant operation
and general and administrative expenses (682,173) (697,357)
Interest received 832 3,000
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Net cash provided (used) by operating activities 142,204 80,866
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Cash flows from investing activities:
Purchases of property and equipment (8,720) (79,859)
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Net cash provided (used) by investing activities (8,720) (79,859)
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Cash flows from financing activities:
Distributions paid to limited partners (83,002) (83,002)
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Net cash provided (used) by operating activities (83,002) (83,002)
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Net increase (decrease) in cash
and temporary investments 50,482 (81,995)
Cash and Temporary Investments:
Beginning of year 286,074 564,087
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End of Period $ 336,556 $ 482,092
========== ==========
Reconciliation of net income (loss) to net cash provided (used) by
operating activities:
Net income (loss) $ 18,727 $ 13,200
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Adjustments to reconcile net income to
net cash used by operating activities:
Depreciation and amortization 73,743 60,234
(Increase) decrease in accounts receivable (13,356) 8,877
(Increase) decrease in prepaid expenses 17,100 18,519
Increase (decrease) in accounts payable
and accrued liabilities 45,990 (19,964)
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Total adjustments 123,477 67,666
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Net cash provided (used) by
operating activities $ 142,204 $ 80,866
========== ==========
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)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
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, 1995 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 $ 41,820
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:
3/31/96 3/31/95
---------- ----------
Salaries and related expenses $ 199,022 $ 204,874
Cost of food and beverage 62,710 55,435
Rent 77,288 71,242
Franchise and advertising 73,177 56,036
Utilities 46,765 46,833
Allocated costs, mainly indirect
salaries 45,819 42,262
Renovations and replacements 13,981 2,612
Other operating expenses 162,591 153,673
---------- ----------
Total hotel and restaurant
operating expenses $ 681,353 $ 632,967
========== ==========
The following additional material contingencies are required to be
restated in interim reports under federal securities law: None.
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<PAGE>
FAMOUS HOST LODGING V, LTD.
(A California Limited Partnership)
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
MARCH 31, 1996
LIQUIDITY AND CAPITAL RESOURCES
The Partnership has current assets of $399,988 and current liabilities
of $225,901. The excess of current assets over current liabilities constitutes
an operating reserve of $174,087. This amount is less than 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
reserve was partially depleted during 1995 due to extraordinary expenditures for
renovation of the restaurant and due to site studies and drawings for a
potential expansion for the hotel. The reserve is expected to equal or exceed
the target balance by the end of the current fiscal year.
The Statement of Cash Flows shows positive net cash flows of $50,482 for
the three months ending March 31, 1996 (after a $83,002 distribution to the
Limited Partners) as compared to a negative cash flow of $81,995 during the
corresponding period of the previous fiscal year. The major changes in cash
flow for the period covered by this report as compared to the previous fiscal
year are a $71,139 relative decrease in capital expenditures and a $61,338
increase in cash provided by operating activities. While the distribution will
remain at its present level for the period covered by this report, the General
Partners will continue to make such decisions each quarter on the basis of
continuing operating results and their perception of future trends.
The Partnership expended for renovations and replacements $22,701 (of
which $8,720 was capitalized) during the period covered by this report. Unlike
the previous fiscal year, the General Partner expects that the Partnership will
spend approximately 3% of gross room revenues on renovations and replacements.
RESULTS OF OPERATIONS
The following is a comparison of operating results for the three month
periods ended March 31, 1996 and March 31, 1995.
Total income increased $68,388 or 8.9%. Hotel room revenues increased
$66,617 or 11.3%, due to an increase in guest room occupancy from 74.2% to 76.6%
and an increase in the average room rate from $59.65 to $63.62. The occupancy
increase represents a partial recovery from the adverse conditions experienced
in 1995. In February 1995 500 potential room nights were lost to corridor floor
and carpet repairs and in January 1995 the area was subject to unusually harsh
whether. The $4,826 increase in restaurant revenue is, at least partially,
associated with the improved hotel occupancy.
Total expenditures increased $62,861 or 8.3%. These increased
expenditures are associated with the improved hotel occupancy
and the increased restaurant traffic.
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<PAGE>
FAMOUS HOST LODGING V, LTD.
(A California Limited Partnership)
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
MARCH 31, 1996 (Continued)
FUTURE TRENDS
The General Partners expect the hotel's performance during 1996 to be
comparable to that experienced during 1995. Changes in restaurant personnel
and procedures are expected to continue bringing 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
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None
Item 3. Defaults upon Senior Securities
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None
Item 4. Submission of Matters
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None
Item 5. Other Information
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None
Item 6. Exhibits and Reports on Form 8-K
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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.
5-2-96 By /S/ David P. Grotewohl
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Date David P. Grotewohl,
President of Grotewohl
Management Services, Inc.,
Managing General Partner
5-2-96 By /S/ David P. Grotewohl
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Date David P. Grotewohl,
Chief Financial Officer
-10-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 336,556
<SECURITIES> 0
<RECEIVABLES> 44,494
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 399,988
<PP&E> 5,371,742
<DEPRECIATION> 2,694,391
<TOTAL-ASSETS> 3,109,633
<CURRENT-LIABILITIES> 225,901
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 2,883,732
<TOTAL-LIABILITY-AND-EQUITY> 3,109,633
<SALES> 827,337
<TOTAL-REVENUES> 837,734
<CGS> 681,353
<TOTAL-COSTS> 681,353
<OTHER-EXPENSES> 137,654
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 18,727
<INCOME-TAX> 0
<INCOME-CONTINUING> 18,727
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 18,727
<EPS-PRIMARY> 2.05
<EPS-DILUTED> 2.05
</TABLE>
