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 June 30, 1999 Commission File 0-14540
FAMOUS HOST LODGING V, L.P.
(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 principle 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
JUNE 30, 1999 AND 1998
<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
INDEX
Financial Statements: PAGE
Balance Sheet - June 30, 1999 and December 31, 1998 2
Statement of Operations - Six Months Ended
June 30, 1999 and 1998 3
Statement of Changes in Partners' Equity -
Six Months Ended June 30, 1999 and 1998 4
Statement of Cash Flows - Six Months Ended
June 30, 1999 and 1998 5
Notes to Financial Statements 6 - 7
Management Discussion and Analysis 8 - 9
Other Information and Signatures 10 - 11
<PAGE>
Famous Host Lodging V, L.P.
(A California Limited Partnership)
Balance Sheet
June 30, 1999 and December 31, 1998
6/30/99 12/31/98
---------- ----------
ASSETS
Current Assets:
Cash and temporary investments $ 516,507 $ 370,184
Accounts receivable 120,547 56,717
Prepaid expenses 12,037 31,028
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Total current assets 649,091 457,929
---------- ----------
Property and Equipment:
Buildings 4,077,604 4,077,604
Furniture and equipment 1,339,197 1,342,104
---------- ----------
5,416,801 5,419,708
Accumulated depreciation (3,540,132) (3,433,032)
---------- ----------
Property and equipment, net 1,876,669 1,986,676
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Other Assets: 107,832 32,294
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Total Assets $ 2,633,592 $ 2,476,899
========== ==========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 193,743 $ 145,818
---------- ----------
Total liabilities 193,743 145,818
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Contingent Liabilities (See Note 1)
Partners' Equity:
Limited Partners: 10,000 units authorized,
9,022 issued and outstanding 2,433,772 2,326,092
General Partners 6,077 4,989
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Total partners' equity 2,439,849 2,331,081
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Total Liabilities and Partners' Equity $ 2,633,592 $ 2,476,899
========== ==========
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, 1999 and 1998
Three Months Six Months Three Months Six Months
Ended Ended Ended Ended
6/30/99 6/30/99 6/30/98 6/30/98
---------- ---------- ---------- ----------
Income:
Hotel room $ 720,625 $ 1,343,176 $ 664,962 $ 1,317,738
Restaurant 74,575 143,154 104,095 239,119
Telephone and vending 10,061 17,843 10,949 23,943
Interest 2,159 5,260 857 1,649
Other 15,150 28,974 16,353 29,645
---------- ---------- ---------- ----------
Total Income 822,570 1,538,407 797,216 1,612,094
---------- ---------- ---------- ----------
Expenses:
Motel operating expenses
(Note 2) 423,174 885,037 471,901 933,492
Restaurant operations (Note 2) 106,325 214,530 124,371 299,933
General and administrative 78,550 143,753 (68,347) 84,130
Depreciation and amortization 54,756 109,672 65,495 130,611
Property management fees 41,049 76,647 39,527 80,045
---------- ---------- ---------- ----------
Total Expenses 703,854 1,429,639 632,947 1,528,211
---------- ---------- ---------- ----------
Net Income (Loss) $ 118,716 $ 108,768 $ 164,269 $ 83,883
========== ========== ========== ==========
Net Income (Loss) Allocable
to Limited Partners $117,529 $107,680 $162,626 $83,044
========== ========== ========== ==========
Net Income (Loss) Allocable
to General Partners $1,187 $1,088 $1,643 $839
========== ========== ========== ==========
Net Income (Loss)
per Partnership Unit $13.03 $11.94 $18.03 $9.20
========== ========== ========== ==========
Distribution to Limited Partners
per Partnership Unit $0.00 $0.00 $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
For the Six Months Ending June 30, 1999 and 1998
1999 1998
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Limited Partners:
Balance at beginning of year 2,326,092 2,250,315
Net income (loss) 107,680 83,044
Distributions to limited partners - (83,002)
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Balance at end of period 2,433,772 2,250,357
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General Partners:
Balance at beginning of year $ 4,989 $ 3,385
Net income (loss) 1,088 839
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Balance at end of period 6,077 4,224
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Total Partners' Equity $ 2,439,849 $ 2,254,581
========== ==========
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, 1999 and 1998
1999 1998
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Cash flows from operating activities:
Received from hotel and restaurant revenues $ 1,469,317 $ 1,605,082
Expended for hotel and restaurant operation
and general and administrative expenses (1,323,679) (1,380,463)
Interest received 5,260 1,649
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Net cash provided (used) by operating activities 150,898 226,268
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Cash flows from investing activities:
Purchases of property and equipment (4,575) (13,970)
Proceeds from sale of equipment - -
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Net cash provided (used) by investing activities (4,575) (13,970)
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Cash flows from financing activities:
Distributions paid to limited partners - (83,002)
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Net cash provided (used) by operating activities - (83,002)
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Net increase (decrease) in cash
and temporary investments 146,323 129,296
Cash and Temporary Investments:
Beginning of year 370,184 146,113
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End of Period $ 516,507 $ 275,409
========== ==========
Reconciliation of net income to net cash provided by operating activities:
Net income (loss) $ 108,768 $ 83,883
---------- ----------
Adjustments to reconcile net income to
net cash used by operating activities:
Depreciation and amortization 109,672 130,611
(Gain) loss on disposition of
property and equipment 4,909 -
(Increase) decrease in accounts receivable (63,830) (5,363)
(Increase) decrease in prepaid expenses 18,991 6,935
(Increase) decrease in other assets (75,538) -
Increase (decrease) in accounts payable
and accrued liabilities 47,926 10,202
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Total adjustments 42,130 142,385
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Net cash provided (used) by
operating activities $ 150,898 $ 226,268
========== ==========
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, 1999 and 1998
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, 1998 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 $76,647
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:
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<PAGE>
Famous Host Lodging V, L.P.
(A California Limited Partnership)
Notes to Financial Statements (Continued)
June 30, 1999 and 1998
Three Months Six Months Three Months Six Months
Ended Ended Ended Ended
6/30/99 6/30/99 6/30/98 6/30/98
---------- ---------- ---------- ----------
Hotel operating costs:
Salaries and related expenses $ 114,244 $ 208,554 $ 124,283 $ 248,928
Rent 69,081 128,853 63,905 126,451
Franchise, advertising and
reservation fees 51,394 96,147 47,320 93,853
Utilities 30,927 67,387 29,887 62,255
Allocated costs, mainly indirect
salaries 32,614 154,293 47,755 97,516
Renovations and replacements 5,351 12,730 24,813 28,281
Maintenance, repairs and
replacements 21,898 37,702 24,001 60,634
Property taxes 15,982 31,964 16,025 32,050
Property insurance 14,315 24,619 10,409 21,064
Other operating expenses 67,368 122,788 83,503 162,460
---------- ---------- ---------- ----------
Total hotel operating expenses $ 423,174 $ 885,037 $ 471,901 $ 933,492
========== ========== ========== ==========
Restaurant operating costs:
Salaries and related expenses $ 46,033 $ 96,936 $ 49,987 $ 125,974
Cost of food and beverage 30,506 59,009 37,292 84,931
Rent 7,540 14,602 10,120 22,896
Utilities 8,423 16,814 9,474 20,013
Property taxes 2,528 5,056 2,630 5,260
Property insurance - 2,267 2,462 4,523
Other operating expenses 11,295 19,846 12,406 36,336
---------- ---------- ---------- ----------
$ 106,325 $ 214,530 $ 124,371 $ 299,933
========== ========== ========== ==========
There are certain administrative expenses allocated between the Partnership and
other partnerships managed by the General Partner and its affiliates. These
expenses, which are based on usage, are telephone, data processing, rent of
administrative office and administrative salaries. Management believes that the
methods used to allocate shared administrative expenses are accurate.
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, L.P.
(A California Limited Partnership)
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
JUNE 30, 1999
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 1999, the Partnership has current assets of $649,091 and
current liabilities of $193,743 creating an operating reserve of $455,348.
Distributions to the limited partners have been suspended to replenish the
operating reserves and in anticipation of the sale of the Barstow hotel and the
windup of Partnerships business.
The Partnership expended for renovations and replacements $12,730 which
is equal to 0.9% of guest room revenue during the period covered by this report.
The Partnership has no commitments for additional capital expenditures.
RESULTS OF OPERATIONS
The following is a comparison of operating results for the six month
periods ended June 30, 1999 and June 30, 1998.
Total income decreased $73,687 or 4.6%. Hotel room revenues increased
$25,438 or 1.9%, due to an increase in the average room rate from $68.77 in 1998
to $73.21 in 1999 and despite a decrease in guest room occupancy from 71.5% in
1998 to 68.5% in 1999. A $95,965 or 40.1% decrease in restaurant revenue was due
to a reduction in the restaurant hours of operations from 16 hours daily to 7
hours daily.
Total expenditures decreased $98,572 or 6.5%. Restaurant expenses
decreased $85,403 or 28.5%. This decrease is associated with the decrease in
restaurant hours of operation. Hotel operating expenses decreased $48,455 or
5.2%. Maintenance and repair expenses decreased due to the anticipated sale of
the hotel. Allocated expenses increased due to legal fees associated with the
proposed sale of the hotel.
FUTURE TRENDS
The General Partners expect the hotel's performance during 1999 to be
substantially unchanged from 1998. 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.
The Limited Partners have agreed to sell the motel to Tiburon
Hospitality, LLC after a proxy solicitation filed separately with the S.E.C. The
dispute with the landlord has been dismissed in arbitration. The remaining
factors include negotiations with Holiday Inn, Inc. over transfer of the
existing franchise and transferring the liquor license. Upon resolution of these
two factors, the sale of the Barstow motel should be completed within thirty
days.
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<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
JUNE 30, 1999 (Continued)
In 1996 the computers used by the Partnership at the Managing General
Partner's offices in Sacramento were updated. In the process of updating its
hardware and software, the Managing General Partner eliminated any potential
Year 2000 problem with respect to such computers. Similarly, the Managing
General Partner does not anticipate any material Year 2000 problem with the
computers in use at the motel. The Managing General Partner has not investigated
and does not know whether any Year 2000 problems may arise from its third party
vendors. Because the motel is a "budget" motel, the Partnership's most
significant vendors are its utility providers and banks. To the extent banking
services, utility services and other goods and services are unavailable as a
result of Year 2000 problems with the computer systems of such vendors or
otherwise, the ability of the Partnership to conduct business at its motels
would be compromised. No contingency plans have been developed in this regard.
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
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults upon Senior Securities
None
Item 4. Submission of Matter to the Vote of Security Holders
None
Item 5. Other Information
See Notes to Financial Statements
Item 6. Exhibits and Reports on Form 8-K
None
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<PAGE>
SIGNATURES
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.
8-9-99 By /S/ Philip B. Grotewohl
Date Philip B. Grotewohl,
President of Grotewohl Management
Services, Inc.,
Managing General Partner
8-9-99 By /S/ Philip B. Grotewohl
Date Philip B. Grotewohl,
Chief executive officer,
chief financial officer,
chief accounting officer
and director of Grotewohl
Management Services, Inc.,
Managing General Partner
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 516,507
<SECURITIES> 0
<RECEIVABLES> 120,547
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 649,091
<PP&E> 5,416,801
<DEPRECIATION> 3,540,132
<TOTAL-ASSETS> 2,633,592
<CURRENT-LIABILITIES> 193,743
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,439,849
<TOTAL-LIABILITY-AND-EQUITY> 2,633,592
<SALES> 1,504,173
<TOTAL-REVENUES> 1,538,407
<CGS> 1,099,567
<TOTAL-COSTS> 1,099,567
<OTHER-EXPENSES> 330,072
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 108,768
<INCOME-TAX> 0
<INCOME-CONTINUING> 108,768
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 108,768
<EPS-BASIC> 11.94
<EPS-DILUTED> 11.94
</TABLE>
