<PAGE>
FORM 10Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly report pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended Commission File
June 30, 1996 No. 0-11980
VENETIAN PARK ASSOCIATES
(Exact name of registrant as specified in its charter)
California 95-3887496
(State or Other Jurisdiction (I.R.S. Employer
of Incorporation or Organization) Identification No.)
3250 Ocean Park Blvd., Ste. 380
Santa Monica, CA 90405
(Address of Principal Executive Offices, Including Zip Code)
Registrant's telephone number, including area code:
(310) 450-6866
-------------------------------------
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 X No .
----- -----
<PAGE>
PART I. FINANCIAL INFORMATION
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
BALANCE SHEETS
ASSETS
JUNE 30, DECEMBER 31,
1996 1995
-------------- --------------
CURRENT ASSETS:
Cash $ 215,618 $ 127,972
Tenant Rents Receivable 2,778 2,778
Tenants Security Deposits 88,344 84,034
Prepaid Expenses 22,019 24,086
-------------- --------------
TOTAL CURRENT ASSETS 328,759 238,870
-------------- --------------
RESTRICTED DEPOSITS & FUNDED RESERVES:
Mortgage Impound 114,792 57,327
Reserve for Replacement 128,651 116,065
-------------- --------------
TOTAL RESTRICTED DEPOSITS & RESERVES 243,443 173,392
-------------- --------------
Fixed Assets, Net 7,262,253 7,403,427
-------------- --------------
OTHER ASSETS:
Prepaid Loan Fees 20,199 20,675
Deposits 939 997
-------------- --------------
TOTAL OTHER ASSETS 21,138 21,672
-------------- --------------
TOTAL ASSETS $ 7,855,593 $ 7,837,361
============== ==============
The accompanying notes are an intergral part of these Financial Statements.
<PAGE>
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
BALANCE SHEETS
LIABILITIES AND PARTNERS' EQUITY
JUNE 30, DECEMBER 31,
1996 1995
-------------- --------------
CURRENT LIABILITIES:
Accounts Payable & Accrued Expenses $ 88,384 $ 32,259
Accrued Interest 35,466 36,152
Tenants Prepaid Rents 8,430 3,482
Tenants Security Deposits 91,605 87,251
Current Portion of Long Term Debt 107,392 107,392
-------------- --------------
TOTAL CURRENT LIABILITIES 331,277 266,536
-------------- --------------
OTHER LIABILITIES:
Mortgage Payable - 1st Trust Deed 5,502,598 5,556,153
-------------- --------------
TOTAL OTHER LIABILITIES 5,502,598 5,556,153
-------------- --------------
Partners Equity 2,021,718 2,014,672
-------------- --------------
TOTAL LIABILITIES AND PARTNERS EQUITY $ 7,855,593 $ 7,837,361
============== ==============
The accompanying notes are an intergral part of these Financial Statements.
<PAGE>
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
STATEMENTS OF OPERATIONS
THREE MONTHS THREE MONTHS
ENDED ENDED
JUNE 30, JUNE 30,
1996 1995
------------ ------------
Operating Revenue:
Rental Income $ 379,769 $ 369,167
Other Rental and Interest Income 17,801 23,948
------------ ------------
TOTAL OPERATING REVENUE 397,570 393,115
------------ ------------
Operating Expenses:
Repair and Maintenance 45,635 64,082
Utilities 41,011 46,255
Managers Salaries 37,966 47,745
Management Fees 19,895 19,656
General and Administrative 27,433 34,644
Real Property Taxes and Insurance 33,141 31,247
Financial Expenses 114,843 115,387
Depreciation 70,587 70,320
Amortization 238 238
------------ ------------
TOTAL OPERATING EXPENSES 390,571 429,574
------------ ------------
NET INCOME (LOSS) FROM OPERATIONS $ 6,819 $ (36,459)
============ ============
The accompanying notes are an intergral part of these Financial Statements.
<PAGE>
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
STATEMENTS OF OPERATIONS
SIX MONTHS SIX MONTHS
ENDED ENDED
JUNE 30, JUNE 30,
1996 1995
------------ ------------
Operating Revenue:
Rental Income $ 773,820 $ 730,043
Other Rental and Interest Income 33,868 44,579
------------ ------------
TOTAL OPERATING REVENUE 807,688 774,622
------------ ------------
Operating Expenses:
Repair and Maintenance 90,650 136,379
Utilities 77,880 90,476
Managers Salaries 78,250 91,341
Management Fees 40,401 38,719
General and Administrative 76,180 101,314
Real Property Taxes and Insurance 66,282 62,495
Financial Expenses 229,349 231,091
Depreciation 141,174 140,640
Amortization 476 476
------------ ------------
TOTAL OPERATING EXPENSES 800,642 892,931
------------ ------------
NET INCOME (LOSS) FROM OPERATIONS $ 7,046 $ (118,309)
------------ ------------
The accompanying notes are an intergral part of these Financial Statements.
<PAGE>
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
SIX MONTHS SIX MONTHS
ENDED ENDED
JUNE 30, JUNE 30,
1996 1995
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net Income/(Loss) $ 7,046 $ (118,309)
------------ ------------
Adjustments to reconcile net (loss) income to net cash
provided by operating activities:
Depreciation and amortization 141,650 141,116
Change in assets - (increase) decrease:
Tenant rents receivable 0 0
Tenants security deposits (4,310) 5,991
Prepaid expenses 2,067 14,831
Restricted deposits and reserves (70,051) (30,342)
Deposits 58 4,896
Change in liabilities - increase (decrease):
Accounts payable and accrued expenses 55,439 (2,531)
Tenants prepaid rents 4,948 (1,432)
Tenants security deposit payable 4,354 1,800
------------ ------------
Total adjustments 134,155 134,329
------------ ------------
Net cash flow provided by (used in) operating activities: 141,201 16,020
------------ ------------
Cash flow from financing activities:
Principal reduction of long-term debt (53,555) (50,561)
Capital distributions to partners 0 0
------------ ------------
Net cash used by financing activities (53,555) (50,561)
------------ ------------
Net increase (decrease) in cash 87,646 (34,541)
Cash at beginning of Period 127,972 139,074
------------ ------------
Cash at end of Period $ 215,618 $ 104,533
============ ============
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest expense $ 215,198 $ 218,192
State franchise tax 800 800
</TABLE>
The accompanying notes are an intergral part of these Financial Statements.
<PAGE>
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
STATEMENT OF PARTNER'S EQUITY
SIX MONTHS
ENDED
JUNE 30,
1996
--------------
Balance at January 1, 1996 $ 2,014,672
Net income (loss) 7,046
Cash Distributions 0
--------------
BALANCE AT JUNE 30, 1996 $ 2,021,718
==============
The accompanying notes are an intergral part of these Financial Statements.
<PAGE>
<PAGE>
VENETIAN PARK ASSOCIATES, LTD.
NOTES TO FINANCIAL STATEMENTS
SIX MONTHS ENDED JUNE 30, 1996
1) BASIS OF PRESENTATION
See the Form 10-K for the Year Ended December 31, 1995 for appropriate
disclosure to the Financial Statements. The Financial Statements
included in the 10-Q omit substantially all disclosures.
2) ADJUSTING ENTRIES
All adjustments which are necessary for a fair presentation of the
Financial Statements have been made to the Financial Statements
presented. All such adjustments are of a normal recurring nature.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
RESULTS OF OPERATIONS
GENERAL
Operating income for the first six months of this year was $807,689 vs.
$774,622 during the same period last year, an increase of $33,067. Net
income jumped to $7,046 for the 1996 first half from a net loss of
$118,309 sustained last year during the corresponding period. This
represents a $125,355 increase in cash flow attributable to dramatic
increase in revenue and decrease in operating expenses.
The scheduled monthly rent roll for June 1996, was $147,505 vs. $146,609
at the same time last year, an increase of $896. Aggregate
vacancy/delinquency losses and rental discounts were $106,816 this year
through June 30th vs. $148,836 for the corresponding period last year, a
slash of $42,020. Of this amount, the greatest contribution was made by
a $14,376 reduction in net delinquency losses and a $20,356 cut in
rental incentives. In addition to strong management, we attribute this
improvement to a noticeable firming in the rental market. However, it
is still premature to consider rent increases of any magnitude.
Operating expenses this year through June 30th were $800,643 vs $892,931
during the same period last year, a reduction of $92,288. In
accomplishing these savings, we are not cutting corners. Instead, we
have implemented more efficient methods of performing on-site
maintenance including exterior painting and time-consuming repairs.
The cash accounts contained $303,962 on June 30, 1996, which included
$88,344 in tenant security deposits. Last year on the same date, the
cash accounts contained $212,006. The Property's FHA replacement
reserve account stood at $128,651 on June 30, 1996, vs. $116,065 on the
same date last year.
LIQUIDITY AND CAPITAL RESOURCES
There were no cash distributed in June 30, 1996 to the limited partners
per HUD-FHA regulations. Although operating results have improved
substantially and we have booked almost $100,000 in cash flow for the
first six months of this year, we are holding back cash distribution
until we have completed the ongoing exterior paint job and certain
replacements including some roofs, bridges, and paved areas.
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Not Applicable
ITEM 2. CHANGES IN SECURITIES
Not Applicable
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not Applicable
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not Applicable
ITEM 5. OTHER INFORMATION
Not Applicable
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) EXHIBITS
Exhibits other than those listed have been omitted because they are
nonexistent, inapplicable or because the required information is
given in the Financial Statements or notes thereto.
b) REPORTS ON FORM 8-K
Not Applicable
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused the report to be signed on its behalf by the
undersigned thereunto duly authorized.
VENETIAN PARK ASSOCIATES, LTD.
DATED: August 8, 1996 By /s/ Norman Jacobson
-----------------------------
Norman Jacobson
General Partner
<TABLE> <S> <C>
<PAGE>
<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> 547,405
<SECURITIES> 0
<RECEIVABLES> 45,935
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 593,340
<PP&E> 11,015,288
<DEPRECIATION> 3,753,035
<TOTAL-ASSETS> 7,855,593
<CURRENT-LIABILITIES> 331,277
<BONDS> 5,502,598
0
0
<COMMON> 0
<OTHER-SE> 2,021,718
<TOTAL-LIABILITY-AND-EQUITY> 7,856,593
<SALES> 0
<TOTAL-REVENUES> 397,570
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 275,728
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 114,843
<INCOME-PRETAX> 6,819
<INCOME-TAX> 0
<INCOME-CONTINUING> 6,819
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,819
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
