SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------------------------
FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of
The Securities Exchange Act of 1934
---------------------------------------------
For the Period ended March 31, 1997
Commission File 2-88942
FAMOUS HOST LODGING V, L.P.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
CALIFORNIA 94 - 2933595
------------------------------ ------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2030 J Street
Sacramento, California 95814
-------------------------------------- --------------
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
---- ------
<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
FINANCIAL STATEMENTS
MARCH 31, 1997 AND 1996
<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
INDEX
Financial Statements: PAGE
Balance Sheet - March 31, 1997 and December 31, 1996 2
Statement of Operations - Three Months Ended
March 31, 1997 and 1996 3
Statement of Changes in Partners' Equity -
Three Months Ended March 31, 1997 and 1996 4
Statement of Cash Flows - Three Months Ended
March 31, 1997 and 1996 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, 1997 and December 31, 1996
3/31/97 12/31/96
------------ ------------
ASSETS
Current Assets:
Cash and temporary investments $ 371,747 $ 246,283
Accounts receivable 34,463 24,531
Prepaid expenses 21,731 39,762
------------ ------------
Total current assets 427,941 310,576
------------ ------------
Property and Equipment:
Buildings 4,077,604 4,077,604
Furniture and equipment 1,274,065 1,253,417
Projects in progress 58,444 58,444
------------ ------------
5,410,113 5,389,465
Accumulated depreciation (2,986,965) (2,917,212)
------------ ------------
Property and equipment, net 2,423,148 2,472,253
------------ ------------
Other Assets: 32,294 32,294
------------ ------------
Total Assets $ 2,883,383 $ 2,815,123
============ ============
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 240,863 184,339
------------ ------------
Total liabilities 240,863 184,339
------------ ------------
Contingent Liabilities (See Note 1)
Partners' Equity:
General Partners 4,783 3,836
Limited Partners 2,637,737 2,626,948
------------ ------------
Total partners' equity 2,642,520 2,630,784
------------ ------------
Total Liabilities and Partners' Equity $ 2,883,383 $ 2,815,123
============ ============
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 Three Months Ending March 31, 1997 and 1996
Three Months Three Months
Ended Ended
3/31/97 3/31/96
------------ ------------
Income:
Hotel room $ 704,139 $ 656,087
Restaurant 154,235 154,748
Telephone and vending 14,480 16,502
Interest 1,692 2,096
Other 9,880 8,301
------------ ------------
Total Income 884,426 837,734
------------ ------------
Expenses:
Motel operating expenses (Note 2) 652,966 681,353
General and administrative 22,756 22,091
Depreciation and amortization 69,753 73,743
Property management fees 44,213 41,820
------------ ------------
Total Expenses 789,688 819,007
------------ ------------
Net Income (Loss) $ 94,738 $ 18,727
============ ============
Net Income (Loss) Allocable
to General Partners $947 $187
========= =========
Net Income (Loss) Allocable
to Limited Partners $93,791 $18,540
========= =========
Net Income (Loss)
per Partnership Unit $10.40 $2.05
========= =========
Distribution to Limited Partners
per Partnership Unit $9.20 $9.20
========= =========
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 Three Months Ending March 31, 1997 and 1996
1997 1996
------------ ------------
General Partners:
Balance at beginning of year $ 3,836 $ 3,688
Net income (loss) 947 187
------------ ------------
Balance at end of period 4,783 3,875
------------ ------------
Limited Partners:
Balance at beginning of year 2,626,948 2,944,319
Net income (loss) 93,791 18,540
Distributions to limited partners (83,002) (83,002)
------------ ------------
Balance at end of period 2,637,737 2,879,857
------------ ------------
Total Partners' Equity $ 2,642,520 $ 2,883,732
============ ============
The accompanying notes are an integral part of the financial statements.
- 4 -
<PAGE>
Famous Host Lodging V, L.P.
(A California Limited Partnership)
Statement of Cash Flows
For the Three Months Ending March 31, 1997 and 1996
1997 1996
------------ ------------
Cash flows from operating activities:
Received from hotel and restaurant revenues $ 873,307 $ 823,545
Expended for hotel and restaurant operation
and general and administrative expenses (645,610) (682,173)
Interest received 1,187 832
------------ ------------
Net cash provided (used) by operating activities 228,884 142,204
------------ ------------
Cash flows from investing activities:
Purchases of property and equipment (20,648) (8,720)
Proceeds from sale of equipment 230 -
------------ ------------
Net cash provided (used) by investing activities (20,418) (8,720)
------------ ------------
Cash flows from financing activities:
Distributions paid to limited partners (83,002) (83,002)
------------ ------------
Net cash provided (used) by operating activities (83,002) (83,002)
------------ ------------
Net increase (decrease) in cash
and temporary investments 125,464 50,482
Cash and Temporary Investments:
Beginning of year 246,283 286,074
------------ ------------
End of Period $ 371,747 $ 336,556
============ ============
Reconciliation of net income (loss) to net cash provided (used) by operating
activities:
Net income (loss) $ 94,738 $ 18,727
------------ ------------
Adjustments to reconcile net income to net cash used by operating activities:
Depreciation and amortization 69,753 73,743
(Gain) loss on disposition of
property and equipment (230) -
(Increase) decrease in accounts receivable (9,932) (13,356)
(Increase) decrease in prepaid expenses 18,031 17,100
Increase (decrease) in accounts payable
and accrued liabilities 56,524 45,990
------------ ------------
Total adjustments 134,146 123,477
------------ ------------
Net cash provided (used) by
operating activities $ 228,884 $ 142,204
============ ============
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
March 31, 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 $44,213
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 Three Months
Ended Ended
3/31/97 3/31/96
------------ ------------
Salaries and related expenses $ 213,730 $ 199,022
Cost of food and beverage 60,548 62,710
Rent 81,817 77,288
Franchise and advertising 49,846 47,354
Utilities 43,581 46,765
Allocated costs, mainly indirect
salaries 44,110 45,819
Renovations and replacements 4,080 13,981
Other operating expenses 155,254 188,414
------------ ------------
Total hotel and restaurant
operating expenses $ 652,966 $ 681,353
============ ============
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
MARCH 31, 1997
LIQUIDITY AND CAPITAL RESOURCES
The Partnership has current assets of $427,941 and current liabilities of
$240,863. The excess of current assets over current liabilities constitutes an
operating reserve of $187,078. 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 net cash flows of $125,464 for the three
months ending March 31, 1997 (after a $83,002 distribution to the Limited
Partners) as compared to a cash flow of $50,482 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 $24,728 (of which
$20,648 was capitalized) during the period covered by this report. The
capitalized expenditures included $14,447 for sofas 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 three month periods
ended March 31, 1997 and March 31, 1996.
Total income increased $46,692 or 5.6%. Hotel room revenues increased $45,052 or
6.9%, due to an increase in guest room occupancy from 76,6% to 80.1% and an
increase in the average room rate from $63.62 to $66.03. The occupancy increase
represents the continued recovery from the adverse conditions experienced in
1995.
Total expenditures decreased $29,319 or 3.6%. Expenses declined due to
additional cost controls on discretionary expenditures.
- 7 -
<PAGE>
FAMOUS HOST LODGING V, LTD.
(A California Limited Partnership)
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
MARCH 31, 1997 (Continued)
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.
- 8 -
<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
-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.
5-5-97 By /S/ David P. Grotewohl
-------- -------------------------
Date David P. Grotewohl,
President of Grotewohl
Management Services, Inc.,
Managing General Partner
5-5-97 By /S/ David P. Grotewohl
-------- -------------------------
Date David P. Grotewohl,
Chief Financial Officer
-10-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 371,747
<SECURITIES> 0
<RECEIVABLES> 34,463
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 427,941
<PP&E> 5,410,113
<DEPRECIATION> 2,986,965
<TOTAL-ASSETS> 2,883,383
<CURRENT-LIABILITIES> 240,863
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,642,520
<TOTAL-LIABILITY-AND-EQUITY> 2,883,383
<SALES> 872,854
<TOTAL-REVENUES> 884,426
<CGS> 652,966
<TOTAL-COSTS> 652,966
<OTHER-EXPENSES> 136,722
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 94,738
<INCOME-TAX> 0
<INCOME-CONTINUING> 94,738
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 94,738
<EPS-PRIMARY> 10.40
<EPS-DILUTED> 10.40
</TABLE>
