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, 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
JUNE 30, 1996 AND 1995
<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
INDEX
Financial Statements: PAGE
Balance Sheet - June 30, 1996 and December 31, 1995 2
Statement of Operations - Six Months Ended
June 30, 1996 and 1995 3
Statement of Changes in Partners' Equity -
Six Months Ended June 30, 1996 and 1995 4
Statement of Cash Flows - Six Months Ended
June 30, 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
JUNE 30, 1996 AND DECEMBER 31, 1995
6/30/96 12/31/95
---------- ----------
ASSETS
Current Assets:
Cash and temporary investments $ 255,517 $ 286,074
Accounts receivable 106,975 31,138
Prepaid expenses 58,892 36,038
---------- ----------
Total current assets 421,384 353,250
---------- ----------
Property and Equipment:
Buildings 4,077,604 4,077,604
Furniture and equipment 1,299,780 1,287,518
---------- ----------
5,377,384 5,365,122
Accumulated depreciation (2,768,070) (2,622,748)
---------- ----------
Property and equipment, Net 2,609,314 2,742,374
---------- ----------
Other Assets 32,294 32,294
---------- ----------
Total Assets $ 3,062,992 $ 3,127,918
---------- ----------
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 206,180 $ 179,911
---------- ----------
Total liabilities 206,180 179,911
---------- ----------
Contingent Liabilities (See Note 1)
Partners' Equity:
General Partners 4,436 3,688
Limited Partners 2,852,376 2,944,319
---------- ----------
Total partners' equity 2,856,812 2,948,007
---------- ----------
Total Liabilities and Partners' Equity $ 3,062,992 $ 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
SIX MONTHS ENDED JUNE 30, 1996 AND 1995
Three Six Three Six
Months Months Months Months
Ended Ended Ended Ended
6/30/96 6/30/96 6/30/95 6/30/95
Income: ---------- ---------- ---------- ----------
Hotel room $ 660,684 $ 1,316,771 $ 660,249 $ 1,249,719
Restaurant 192,741 347,489 173,141 323,063
Telephone and vending 15,097 31,599 14,055 27,777
Interest 4,341 6,437 3,651 6,660
Other 9,056 17,357 10,594 23,818
---------- ---------- ---------- ----------
Total Income 881,919 1,719,653 861,690 1,631,037
---------- ---------- ---------- ----------
Expenses:
Hotel and restaurant
operating (Note 2) 684,953 1,366,306 655,168 1,288,135
General and admin-
istration 23,357 45,448 13,112 37,594
Depreciation and
amortization 73,679 147,422 64,005 124,239
Property management fee 43,847 85,667 42,946 81,409
---------- ---------- ---------- ----------
Total Expenses 825,836 1,644,843 775,231 1,531,377
---------- ---------- ---------- ----------
Net Income (Loss) $ 56,083 $ 74,810 $ 86,459 $ 99,660
========== ========== ========== ==========
Net Income (Loss) Allocable to
General Partners $561 $748 $865 $997
======= ======= ======= =======
Net Income (Loss) Allocable to
Limited Partners $55,522 $74,062 $85,594 $98,663
======= ======= ======= =======
Net Income (Loss) per
Partnership Unit $6.15 $8.21 $9.49 $10.94
======= ======= ======= =======
Distributions to Limited Partners
per Partnership Unit $9.20 $18.40 $9.20 $18.40
======= ======= ======= =======
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
SIX MONTHS ENDED JUNE 30, 1996 AND 1995
1996 1995
---------- ----------
General Partners:
Balance at beginning of year $ 3,688 $ 2,901
Net income (loss) 748 997
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Balance at end of period 4,436 3,898
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Limited Partners:
Balance at beginning of year 2,944,319 3,198,440
Net income (loss) 74,062 98,663
Distributions to limited partners (166,005) (166,005)
---------- ----------
Balance at end of period 2,852,376 3,131,098
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Total Partners' Equity $ 2,856,812 $ 3,134,996
========== ==========
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
SIX MONTHS ENDED JUNE 30, 1996 AND 1995
1996 1995
Cash flows from operating activities: ---------- ----------
Received from hotel and restaurant revenues $ 1,639,832 $ 1,630,208
Expended for hotel and restaurant operation
and general and administrative expenses (1,494,004) (1,414,748)
Interest received 3,982 6,061
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Net cash provided (used) by operating activities 149,810 221,521
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Cash flows from investing activities:
Purchases of property and equipment (14,362) (145,188)
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Net cash provided (used) by investing activities (14,362) (145,188)
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Cash flows from financing activities:
Distributions paid to limited partners (166,005) (166,005)
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Net cash provided (used) by operating activities (166,005) (166,005)
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Net increase (decrease) in cash
and temporary investments (30,557) (89,672)
Cash and Temporary Investments:
Beginning of year 286,074 564,087
---------- ----------
End of Period $ 255,517 $ 474,415
========== ==========
Reconciliation of net income (loss) to net cash provided (used) by operating
activities:
Net income (loss) $ 74,810 $ 99,660
Adjustments to reconcile net income to ---------- ----------
net cash used by operating activities:
Depreciation and amortization 147,422 124,239
(Gain) loss on disposition of property
and equipment - 1,972
(Increase) decrease in accounts receivable (75,837) 5,232
(Increase) decrease in prepaid expenses (22,854) (6,677)
Increase (decrease) in accounts payable
and accrued liabilities 26,269 (2,905)
---------- ----------
Total adjustments 75,000 121,861
---------- ----------
Net cash provided (used) by
operating activities $ 149,810 $ 221,521
========== ==========
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
JUNE 30, 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 $ 85,667
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
6/30/96 6/30/96 6/30/95 6/30/95
---------- ---------- ---------- ----------
Salaries and related
expenses $ 193,424 $ 393,446 $ 199,653 $ 407,233
Cost of food and beverage 66,071 128,781 58,275 113,710
Rent 80,991 158,279 79,438 150,680
Franchise and advertising 68,690 141,866 66,857 122,893
Utilities 41,379 88,144 49,060 95,893
Allocated costs, mainly indirect
salaries 47,631 93,450 44,551 86,813
Renovations and replacements 10,882 24,864 16,743 19,355
Other operating expenses 175,885 337,476 140,591 291,558
---------- ---------- ---------- ----------
Total hotel and restaurant
operating expenses $ 684,953 $ 1,366,306 $ 655,168 $ 1,288,135
========== ========== ========== ==========
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
JUNE 30, 1996
LIQUIDITY AND CAPITAL RESOURCES
The Partnership has current assets of $421,384 and current liabilities
of $206,180. The excess of current assets over current liabilities constitutes
an operating reserve of $215,204. This amount is less than the $276,800 reserve
target set by the General Partners. The reserve target is equal to 5% of the a
justed 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 negative net cash flows of $30,557 for
the six months ending June 30, 1996 (after $166,005 in distributions to the
Limited Partners) as compared to a negative cash flow of $89,672 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 $130,862 relative decrease in capital expenditures and a $71,711
decrease 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 $39,226
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 six month
periods ended June 30, 1996 and June 30, 1995.
Total income increased $88,616 or 5.4%. Hotel room revenues increased
$67,052 or 5.4%, due to an decrease in guest room occupancy from 76.9% to 76.0%
and an increase in the average room rate from $60.66 to $64.35. The
Partnership's motel achieved the increased room rates through additional rate
management programs.
Total expenditures increased $113,466 or 7.4%. The increased
expenditures were generally associated with additional security and cost
inflation.
-7-
<PAGE>
FAMOUS HOST LODGING V, LTD.
(A California Limited Partnership)
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
JUNE 30, 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.
8-2-96 By /S/ David P. Grotewohl
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Date David P. Grotewohl,
President of Grotewohl
Management Services, Inc.,
Managing General Partner
8-2-96 By /S/ David P. Grotewohl
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Date David P. Grotewohl,
Chief Financial Officer
-10-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 255,517
<SECURITIES> 0
<RECEIVABLES> 106,975
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 421,384
<PP&E> 5,377,384
<DEPRECIATION> 2,768,070
<TOTAL-ASSETS> 3,062,992
<CURRENT-LIABILITIES> 206,180
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 2,856,812
<TOTAL-LIABILITY-AND-EQUITY> 3,062,992
<SALES> 1,695,859
<TOTAL-REVENUES> 1,719,653
<CGS> 1,366,306
<TOTAL-COSTS> 1,366,306
<OTHER-EXPENSES> 278,537
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 74,810
<INCOME-TAX> 0
<INCOME-CONTINUING> 74,810
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 74,810
<EPS-PRIMARY> 8.21
<EPS-DILUTED> 8.21
</TABLE>
