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, 1997
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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FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
FINANCIAL STATEMENTS
JUNE 30, 1997 AND 1996
<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
INDEX
Financial Statements: PAGE
Balance Sheet - June 30, 1997 and December 31, 1996 2
Statement of Operations - Six Months Ended
June 30, 1997 and 1996 3
Statement of Changes in Partners' Equity -
Six Months Ended June 30, 1997 and 1996 4
Statement of Cash Flows - Six Months Ended
June 30, 1997 and 1996 5
Notes to Financial Statements 6
Management Discussion and Analysis 7
Other Information and Signatures 8 - 9
<PAGE>
Famous Host Lodging V, L.P.
(A California Limited Partnership)
Balance Sheet
June 30, 1997 and December 31, 1996
6/30/97 12/31/96
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ASSETS
Current Assets:
Cash and temporary investments $ 299,250 $ 246,283
Accounts receivable 24,063 24,531
Prepaid expenses 35,786 39,762
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Total current assets 359,099 310,576
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Property and Equipment:
Buildings 4,077,604 4,077,604
Furniture and equipment 1,275,330 1,253,417
Projects in progress 58,444 58,444
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5,411,378 5,389,465
Accumulated depreciation (3,051,299) (2,917,212)
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Property and equipment, net 2,360,079 2,472,253
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Other Assets: 32,294 32,294
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Total Assets $ 2,751,472 $ 2,815,123
========== ==========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 211,908 $ 184,339
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Total current liabilities 211,908 184,339
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Total liabilities 211,908 184,339
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Contingent Liabilities (See Note 1)
Partners' Equity:
General Partners 4,584 3,836
Limited Partners 2,534,980 2,626,948
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Total partners' equity 2,539,564 2,630,784
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Total Liabilities and Partners' Equity $ 2,751,472 $ 2,815,123
=========== ==========
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 Six Months Ending June 30, 1997 and 1996
Three Months Six Months Three Months Six Months
Ended Ended Ended Ended
6/30/97 6/30/97 6/30/96 6/30/96
----------- ----------- ----------- -----------
Income:
Hotel room $ 587,612 $ 1,291,751 $ 660,684 $ 1,316,771
Restaurant 165,713 319,948 192,741 347,489
Telephone and vending 12,429 26,909 15,097 31,599
Interest 4,118 5,810 4,341 6,437
Other 12,936 22,816 9,056 17,357
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Total Income 782,808 1,667,234 881,919 1,719,653
---------- ---------- ---------- ----------
Expenses:
Motel operating expenses
(Note 2) 676,324 1,329,339 684,953 1,366,306
General and
administrative 17,442 40,198 23,357 45,448
Depreciation and
amortization 70,239 139,992 73,679 147,422
Property management fees 38,707 82,920 43,847 85,667
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Total Expenses 802,712 1,592,449 825,836 1,644,843
---------- ---------- ---------- ----------
Net Income (Loss) $ (19,904) $ 74,785 $ 56,083 $ 74,810
========== ========== ========== ==========
Net Income (Loss) Allocable
to General Partners ($199) $748 $561 $748
========== ========== ========== ==========
Net Income (Loss) Allocable
to Limited Partners ($19,705) $74,037 $55,522 $74,062
========== ========== ========== ==========
Net Income (Loss)
per Partnership Unit ($2.18) $8.21 $6.15 $8.21
========== ========== ========== ==========
Distribution 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
For the Six Months Ending June 30, 1997 and 1996
1997 1996
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General Partners:
Balance at beginning of year $ 3,836 $ 3,688
Net income (loss) 748 748
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Balance at end of period 4,584 4,436
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Limited Partners:
Balance at beginning of year 2,626,948 2,944,319
Net income (loss) 74,037 74,062
Distributions to limited partners (166,005) (166,005)
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Balance at end of period 2,534,980 2,852,376
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Total Partners' Equity $ 2,539,564 $ 2,856,812
========== ==========
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 Six Months Ending June 30, 1997 and 1996
1997 1996
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Cash flows from operating activities:
Received from hotel and restaurant revenues $ 1,662,323 $ 1,639,832
Expended for hotel and restaurant operation
and general and administrative expenses (1,421,142) (1,494,004)
Interest received 5,379 3,982
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Net cash provided (used) by operating activities 246,560 149,810
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Cash flows from investing activities:
Purchases of property and equipment (27,818) (14,362)
Proceeds from sale of equipment 230 -
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Net cash provided (used) by investing activities (27,588) (14,362)
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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 52,967 (30,557)
Cash and Temporary Investments:
Beginning of year 246,283 286,074
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End of Period $ 299,250 $ 255,517
========== ==========
Reconciliation of net income (loss) to net cash provided (used) by operating
activities:
Net income (loss) $ 74,785 $ 74,810
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Adjustments to reconcile net income to net cash used by operating activities:
Depreciation and amortization 139,992 147,422
(Gain) loss on disposition of property
and equipment (230) -
(Increase) decrease in accounts receivable 468 (75,837)
(Increase) decrease in prepaid expenses 3,976 (22,854)
Increase (decrease) in accounts payable
and accrued liabilities 27,569 26,269
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Total adjustments 171,775 75,000
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Net cash provided (used) by
operating activities $ 246,560 $ 149,810
========== ==========
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, 1997 and 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, 1996 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 $ 82,920
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 Months Six Months Three Months Six Months
Ended Ended Ended Ended
6/30/97 6/30/97 6/30/96 6/30/96
----------- ----------- ----------- -----------
Salaries and related
expenses $ 218,151 $ 431,881 $ 193,424 $ 393,446
Cost of food and beverage 69,111 129,659 66,071 128,781
Rent 72,537 154,354 80,991 158,279
Franchise, advertising and
reservation fees 42,249 92,095 68,690 141,866
Utilities 47,222 90,922 41,379 88,144
Allocated costs, mainly
indirect salaries 44,313 88,423 47,631 93,450
Renovations and replacements 15,482 19,562 10,882 24,864
Other operating expenses 167,259 322,443 175,885 337,476
---------- ---------- ---------- ----------
Total hotel and restaurant
operating expenses $ 676,324 $ 1,329,339 $ 684,953 $ 1,366,306
========== ========== ========== ==========
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, 1997 _
LIQUIDITY AND CAPITAL RESOURCES
The Partnership has current assets of $358,099 and current liabilities of
$211,908. The excess of current assets over current liabilities constitutes an
operating reserve of $147,191. 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 and 1996 due to extraordinary
expenditures for renovation of the restaurant and due to site studies and
drawings for a potential expansion for the hotel.
The Statement of Cash Flows shows net cash flows of $52,967 for the six months
ending June 30, 1997 (after $166,005 distributions to the Limited Partners) as
compared to a negative cash flow of $30,557 during the corresponding period of
the previous fiscal year. The improved cash flow is associated with improved
operating activities.
The Partnership expended for renovations and replacements $47,381 (3.7% of gross
room revenues of which $27,818 was capitalized) during the period covered by
this report. The capitalized expenditures included $14,447 for sofas, $7,170 for
guest room carpet and $6,200 for a security system. 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, 1997 and June 30, 1996.
Total income decreased $52,419 or 3.0%. Hotel room revenues decreased $25,020 or
1.9%, due to a decrease in guest room occupancy from 76.0% to 72.9% and an
increase in the average room rate from $64.35 to $66.11.
Total expenditures decreased $52,394 or 3.2%. Expenses declined due to
additional cost controls on discretionary expenditures.
FUTURE TRENDS
The General Partners expect the hotel's performance during 1997 to be improved
over that experienced during 1996. 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.
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<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
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<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.
8-12-97 By /S/ David P. Grotewohl
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Date David P. Grotewohl,
President of Grotewohl
Management Services, Inc.,
Managing General Partner
8-12-97 By /S/ David P. Grotewohl
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Date David P. Grotewohl,
Chief Financial Officer
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<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 299,250
<SECURITIES> 0
<RECEIVABLES> 24,063
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 359,099
<PP&E> 5,411,378
<DEPRECIATION> 3,051,299
<TOTAL-ASSETS> 2,751,472
<CURRENT-LIABILITIES> 211,908
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,539,564
<TOTAL-LIABILITY-AND-EQUITY> 2,751,472
<SALES> 1,638,608
<TOTAL-REVENUES> 1,667,234
<CGS> 1,329,339
<TOTAL-COSTS> 1,329,339
<OTHER-EXPENSES> 263,110
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 74,785
<INCOME-TAX> 0
<INCOME-CONTINUING> 74,785
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 74,785
<EPS-PRIMARY> 8.21
<EPS-DILUTED> 8.21
</TABLE>
