<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
March 31, 1996 Number 0-11980
VENETIAN PARK ASSOCIATES
(A Limited Partnership)
(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 900405
(Address of Principal Executive Offices, Including Zip Code)
Registrant's Telephone Number, Including Area Code:
(310) 450-6866
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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
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1996 1995
---------------- --------------
<S> <C> <C>
CURRENT ASSETS:
Cash $ 165,846 $ 127,972
Tenant Rents Receivable 3,529 2,778
Tenants Security Deposits 87,786 84,034
Prepaid Expenses 22,019 24,086
--------------- ---------------
TOTAL CURRENT ASSETS 279,180 238,870
--------------- ---------------
RESTRICTED DEPOSITS & FUNDED RESERVES:
Mortgage Impound 89,326 57,327
Reserve for Replacement 122,358 116,065
--------------- ---------------
TOTAL RESTRICTED DEPOSITS & RESERVES 211,684 173,392
--------------- ---------------
Net Fixed Assets, net 7,332,840 7,403,427
--------------- ---------------
OTHER ASSETS:
Prepaid Loan Fees 20,437 20,675
Deposits 939 997
--------------- ---------------
TOTAL OTHER ASSETS 21,376 21,672
--------------- ---------------
TOTAL ASSETS $ 7,845,080 $ 7,837,361
--------------- ---------------
--------------- ---------------
</TABLE>
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
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1996 1995
--------------- ---------------
<S> <C> <C>
CURRENT LIABILITIES:
Accounts Payable & Accrued Expenses $ 65,357 $ 32,259
Accrued Interest 35,466 36,152
Tenants Prepaid Rents 6,321 3,482
Tenants Security Deposits 86,462 87,251
Current Portion of Long Term Debt 107,392 107,392
--------------- ---------------
TOTAL CURRENT LIABILITIES 300,998 266,536
--------------- ---------------
OTHER LIABILITIES:
Mortgage Payable - 1st Trust Deed 5,529,185 5,556,153
--------------- ---------------
TOTAL OTHER LIABILITIES 5,529,185 5,556,153
--------------- ---------------
Partners Equity 2,014,897 2,014,672
--------------- ---------------
TOTAL LIABILITIES AND PARTNERS EQUITY $ 7,845,080 $ 7,837,361
--------------- ---------------
--------------- ---------------
</TABLE>
The accompanying notes are an intergral part of these Financial Statements.
<PAGE>
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS
ENDED ENDED
MARCH 31, MARCH 31,
1996 1995
---------------- ---------------
<S> <C> <C>
Operating Revenue:
Rental Income $ 394,051 $ 360,876
Other Rental and Interest Income 16,067 20,631
---------------- ---------------
TOTAL OPERATING REVENUE 410,118 381,507
---------------- ---------------
Operating Expenses:
Repair and Maintenance 45,015 72,297
Utilities 36,869 44,221
Managers Salaries 40,284 43,596
Management Fees 20,506 19,063
General and Administrative 48,747 66,670
Real Property Taxes and Insurance 33,141 31,248
Financial Expenses 114,506 115,704
Depreciation 70,587 70,320
Amortization 238 238
---------------- ---------------
TOTAL OPERATING EXPENSES 409,893 463,357
NET INCOME (LOSS) FROM OPERATIONS $ 225 $ (81,850)
---------------- ---------------
---------------- ---------------
</TABLE>
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>
THREE MONTHS THREE MONTHS
ENDED ENDED
MARCH 31, MARCH 31,
1996 1995
-------------- -------------
<S> <C> <C>
Cash flows from operating activities: Net Income/(Loss) $ 225 $ (81,850)
-------------- -------------
Adjustments to reconcile net (loss) income to net cash
provided by operating activities:
Depreciation and amortization 70,825 70,558
Change in assets - (increase) decrease:
Tenant rents receivable (751) 0
Tenants security deposits (3,752) 6,475
Prepaid expenses 2,067 3,270
Restricted deposits and reserves (38,292) (35,975)
Deposits 58 5,471
Change in liabilities - increase (decrease):
Accounts payable and accrued expenses 32,412 18,641
Tenants prepaid rents 2,839 1,684
Tenants security deposit payable (789) 2,155
--------------- --------------
Total adjustments 64,617 72,279
--------------- --------------
Net cash flow provided by (used in) operating activities 64,842 (9,571)
--------------- --------------
Cash flow from financing activities:
Principal reduction of long-term debt (26,968) (25,933)
Capital distributions to partners 0 0
--------------- --------------
Net cash used by financing activities (26,968) (25,933)
--------------- --------------
Net increase (decrease) in cash 37,874 (35,504)
Cash at beginning of Period 127,972 139,074
--------------- --------------
Cash at end of Period $ 165,846 $ 103,570
--------------- --------------
--------------- --------------
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest expense $ 107,408 $ 108,443
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
<TABLE>
<CAPTION>
THREE MONTHS
ENDED
MARCH 31,
1996
---------------
<S> <C>
Balance at January 1, 1996 $ 2,014,672
Net income (loss) 225
Cash Distributions 0
---------------
BALANCE AT MARCH 31, 1996 $ 2,014,897
---------------
---------------
</TABLE>
The accompanying notes are an intergral part of these Financial Statements.
<PAGE>
Venetian Park Associates, Ltd.
Notes to Financial Statements
Three Months Ended March 31, 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 nature.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
RESULTS OF OPERATIONS
GENERAL
Operating revenue for the first quarter of this year was $410,118 vs.
$381,507 during 1995 first quarter, a jump of $28,611. Likewise, there's
been even a more dramatic improvement in net income due to major reductions
in operating expenses. Net income for the first three months of 1996 was
$225 vs. a net loss of $81,850 during the corresponding quarter last year,
an increase of $82,075.
Combined vacancy/delinquency losses and rental discounts were $45,336
during this year's first quarter vs. $79,944 during the 1995 first quarter,
a reduction of $34,608. Because of gradually improving rental conditions
in the Stockton area, we have been able to reduce rental incentives from
$14,875 during the first quarter of last year to only $5,724 during this
year's first quarter, a reduction of $9,151.
Operating expenses during the first quarter of 1996 were held to $409,893
vs. $463,357 during last year's first quarter, a substantial decline of
$53,464. Savings have been made in both fixed and variable expenses as
well as repairs, maintenance and replacements.
On March 31, 1996, the Property's cash accounts contained $165,846 vs.
$103,570 during the first quarter last year. The FHA replacement reserve
account as of March 31, 1996, was $122,358 vs. $119,497 on the same date
last year.
LIQUIDITY AND CAPITAL RESOURCES
There were no cash distributed in January, 1996 to the limited partners per
HUD-FHA regulations. Should sufficient funds be available, semi-annual
distributions to the Partnership will resume in July.
<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 of notes thereto.
b) REPORT 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, LIMITED
DATED: April 24, 1996 By /s/Norman Jacobson
-----------------------------------
Norman Jacobson
General Partner
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 465,316
<SECURITIES> 0
<RECEIVABLES> 46,924
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 512,240
<PP&E> 11,015,288
<DEPRECIATION> 3,682,448
<TOTAL-ASSETS> 7,845,080
<CURRENT-LIABILITIES> 300,998
<BONDS> 5,529,185
0
0
<COMMON> 0
<OTHER-SE> 2,014,897
<TOTAL-LIABILITY-AND-EQUITY> 7,845,080
<SALES> 0
<TOTAL-REVENUES> 410,118
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 295,387
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 114,506
<INCOME-PRETAX> 225
<INCOME-TAX> 0
<INCOME-CONTINUING> 225
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 225
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
