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, 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
MARCH 31, 1999 AND 1998
<PAGE>
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
INDEX
Financial Statements: PAGE
Balance Sheet - March 31, 1999 and December 31, 1998 2
Statement of Operations - Three Months Ended
March 31, 1999 and 1998 3
Statement of Changes in Partners' Equity -
Three Months Ended March 31, 1999 and 1998 4
Statement of Cash Flows - Three Months Ended
March 31, 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
March 31, 1999 and December 31, 1998
3/31/99 12/31/98
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ASSETS
Current Assets:
Cash and temporary investments $ 473,929 $ 370,184
Accounts receivable 8,490 20,431
Other receivables 36,286 36,286
Prepaid expenses 15,941 31,028
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Total current assets 534,646 457,929
---------- ----------
Property and Equipment:
Buildings 4,077,604 4,077,604
Furniture and equipment 1,339,198 1,342,104
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5,416,802 5,419,708
Accumulated depreciation (3,485,376) (3,433,032)
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Property and equipment, net 1,931,426 1,986,676
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Other Assets: 31,000 32,294
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Total Assets $ 2,497,072 $ 2,476,899
========== ==========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities 175,939 145,818
---------- ----------
Total liabilities 175,939 145,818
---------- ----------
Contingent Liabilities (See Note 1)
Partners' Equity:
Limited Partners: 10,000 units authorized,
9,022 issued and outstanding 2,316,243 2,326,092
General Partners 4,890 4,989
---------- ----------
Total partners' equity 2,321,133 2,331,081
---------- ----------
Total Liabilities and Partners' Equity $ 2,497,072 $ 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 Three Months Ending March 31, 1999 and 1998
Three Months Three Months
Ended Ended
3/31/99 3/31/98
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Income:
Hotel room $ 622,551 $ 652,776
Restaurant 68,579 135,024
Telephone and vending 7,782 12,994
Interest 3,101 801
Other 13,824 13,292
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Total Income 715,837 814,887
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Expenses:
Hotel operating expenses (Note 2) 461,863 453,801
Restaurant operations (Note 2) 108,205 175,562
General and administrative 65,203 152,477
Depreciation and amortization 54,916 65,116
Property management fees 35,598 40,518
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Total Expenses 725,785 887,474
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Net Income (Loss) $ (9,948) $ (72,587)
========== ==========
Net Income (Loss) Allocable
to General Partners ($99) ($726)
========== ==========
Net Income (Loss) Allocable
to Limited Partners ($9,849) ($71,861)
========== ==========
Net Income (Loss)
per Partnership Unit ($1.09) ($7.97)
========== ==========
Distribution to Limited Partners
per Partnership Unit $0.00 $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 Three Months Ending March 31, 1999 and 1998
Three Months Three Months
Ended Ended
3/31/99 3/31/98
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Limited Partners:
Balance at beginning of year $ 2,326,092 $ 2,250,315
Net income (loss) (9,849) (71,861)
Distributions to limited partners - (83,002)
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Balance at end of period 2,316,243 2,095,452
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General Partners:
Balance at beginning of year $ 4,989 $ 3,385
Net income (loss) (99) (726)
---------- ----------
Balance at end of period 4,890 2,659
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Total Partners' Equity $ 2,321,133 $ 2,098,111
========== ==========
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 Three Months Ending March 31, 1999 and 1998
Three Months Three Months
Ended Ended
3/31/99 3/31/98
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Cash flows from operating activities:
Received from hotel and restaurant revenues $ 724,677 $ 816,176
Expended for hotel and restaurant operation
and general and administrative expenses (624,033) (660,193)
Interest received 3,101 801
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Net cash provided (used) by operating activities 103,745 156,784
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Cash flows from investing activities:
Purchases of property and equipment - (10,221)
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Net cash provided (used) by investing activities - (10,221)
---------- ----------
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 103,745 63,561
Cash and Temporary Investments:
Beginning of year 370,184 146,113
---------- ----------
End of Period $ 473,929 $ 209,674
========== ==========
Reconciliation of net income (loss) to net cash provided (used) by operating
activities:
Net income (loss) $ (9,948) $ (72,587)
--------- ----------
Adjustments to reconcile net income to net cash used by operating activities:
Depreciation and amortization 54,916 65,116
(Gain) loss on disposition of property
and equipment 334 -
(Increase) decrease in accounts receivable 11,941 2,090
(Increase) decrease in prepaid expenses 30,967 22,390
(Increase) decrease in other assets 1,294 -
Increase (decrease) in accounts payable
and accrued liabilities 14,241 139,775
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Total adjustments 113,693 229,371
--------- ----------
Net cash provided (used) by
operating activities $ 103,745 $ 156,784
========= ==========
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, 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 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.
Long-lived assets are reviewed for impairment whenever events or changes in
circumstatnces indicate that the carrying amount may not be recoverable. If the
sum of the expected future undiscounted cash flows is less than the carrying
amount of the asset, a loss is recognized for the difference between the fair
value and the carrying value of the asset.
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 $35,598
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)
March 31, 1999 and 1998
Three Months Three Months
Ended Ended
3/31/99 3/31/98
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Hotel operating costs:
Salaries and related expenses $ 94,310 $ 124,645
Rent 59,772 62,546
Franchise, advertising and reservation fees 44,753 46,533
Utilities 36,460 32,368
Allocated costs, mainly indirect
salaries 121,679 49,761
Renovations and replacements 7,379 3,468
Maintenance, repairs and replacements 15,804 36,633
Property taxes 15,982 16,025
Property insurance 10,304 10,655
Other operating expenses 55,420 71,167
---------- ----------
Total hotel operating expenses $ 461,863 $ 453,801
========== ==========
Three Months Three Months
Ended Ended
3/31/99 3/31/98
---------- ----------
Restaurant operating costs:
Salaries and related expenses $ 50,903 $ 75,987
Cost of food and beverage 28,503 47,639
Rent 7,062 12,776
Utilities 8,391 10,539
Property taxes 2,528 2,630
Property insurance 2,267 2,061
Other operating expenses 8,551 23,930
---------- ----------
$ 108,205 $ 175,562
========== ==========
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
MARCH 31, 1999
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 1999, the Partnership has current assets of $534,646
and current liabilities of $175,939 creating an operating reserve of $358,707.
Distributions to the limited partners have been suspended to replenish the
operating reserves.
The Partnership expended for renovations and replacements $7,379 which
is equal to 1.2% 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 three month
periods ended March 31, 1999 and March 31, 1998.
Total income decreased $99,050 or 12.2%. Hotel room revenues decreased
$30,225 or 4.6%, due to a decrease in guest room occupancy from 72.9% in 1998 to
62.6% in 1999 and an increase in the average room rate from $67.23 in 1998 to
$74.68 in 1999. The $66,445 or 49.2% 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 $161,689 or 18.2%. Restaurant operating
expenses decreased $67,357 or 38.4%. This decrease is associated with the
decrease in restaurant hours of operation. Hotel operating expenses increased
$8,062 or 1.8%. Allocated expenses increased due to legal fees associated with
the proposed sale of the hotel and a legal arbitration with the Barstow hotel's
landlord.
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 obtaining the consent of the landlord to transfer of the
leases to the new owner. 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
MARCH 31, 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.
5-14-99 By /S/ Philip B. Grotewohl
- ------- ------------------------
Date Philip B. Grotewohl,
President of Grotewohl Management
Services, Inc.,
Managing General Partner
5-14-99 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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 473,929
<SECURITIES> 0
<RECEIVABLES> 44,776
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 518,766
<PP&E> 5,416,802
<DEPRECIATION> 3,485,376
<TOTAL-ASSETS> 2,481,192
<CURRENT-LIABILITIES> 160,059
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,321,133
<TOTAL-LIABILITY-AND-EQUITY> 2,481,192
<SALES> 698,912
<TOTAL-REVENUES> 715,837
<CGS> 570,068
<TOTAL-COSTS> 570,068
<OTHER-EXPENSES> 155,717
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (9,948)
<INCOME-TAX> 0
<INCOME-CONTINUING> (9,948)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (9,948)
<EPS-PRIMARY> (1.09)
<EPS-DILUTED> (1.09)
</TABLE>
