<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 the Quarterly Period Ended Commission File
September 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 .
--- ---
Indicate the number of shares (units) outstanding of each of the issuer's
classes of common stock (units) as of the latest practicable date
(applicable only to corporate issuer) 6,041 limited partnership units
issued and outstanding.
<PAGE>
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
REPORT ON FORM 10-Q
For the Quarter Ended September 30, 1996
INDEX
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS:
Balance Sheets 3-4
Statements of Operations 5-6
Statements of Changes in Partners' Equity 7
Statements of Cash Flows 8
Notes to Financial Statements 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. 10
PART II. OTHER INFORMATION 11
SIGNATURE 12
</TABLE>
2
<PAGE>
PART I. FINANCIAL INFORMATION
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1996 1995
------------- ------------
(unaudited)
<S> <C> <C>
Current Assets:
- ---------------
Cash $ 263,931 $ 127,972
Tenant Rents Receivable 2,778 2,778
Tenants Security Deposits 88,901 84,034
Prepaid Expenses 30,365 24,086
---------- ----------
TOTAL CURRENT ASSETS 385,975 238,870
---------- ----------
Restricted Deposits & Funded Reserves:
- --------------------------------------
Mortgage Impound 133,351 57,327
Reserve for Replacement 134,944 116,065
---------- ----------
TOTAL RESTRICTED DEPOSITS & RESERVES 268,295 173,392
---------- ----------
Fixed Assets, Net 7,191,666 7,403,427
---------- ----------
Other Assets:
- -------------
Prepaid Loan Fees 19,961 20,675
Deposits 2,334 997
---------- ----------
TOTAL OTHER ASSETS 22,295 21,672
---------- ----------
TOTAL ASSETS $7,868,231 $7,837,361
---------- ----------
---------- ----------
</TABLE>
The accompanying notes are an intergral part of these Financial Statements.
3
<PAGE>
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
BALANCE SHEETS
LIABILITIES AND PARTNERS' EQUITY
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1996 1995
------------- ------------
(unaudited)
<S> <C> <C>
Current Liabilities:
- --------------------
Accounts Payable & Accrued Expenses $ 117,837 $ 32,259
Accrued Interest 35,466 36,152
Tenants Prepaid Rents 4,732 3,482
Tenants Security Deposits 103,466 87,251
Current Portion of Long Term Debt 107,392 107,392
---------- ----------
TOTAL CURRENT LIABILITIES 368,893 266,536
---------- ----------
Other Liabilities:
- ------------------
Mortgage Payable - 1st Trust Deed 5,475,499 5,556,153
---------- ----------
TOTAL OTHER LIABILITIES 5,475,499 5,556,153
---------- ----------
Partners Equity 2,023,839 2,014,672
---------- ----------
TOTAL LIABILITIES AND PARTNERS EQUITY $7,868,231 $7,837,361
---------- ----------
---------- ----------
</TABLE>
The accompanying notes are an intergral part of these Financial Statements.
4
<PAGE>
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
1996 1995
------------- -------------
<S> <C> <C>
Operating Revenue:
- ------------------
Rental Income $385,566 $347,227
Other Rental and Interest Income 20,574 22,869
-------- --------
TOTAL OPERATING REVENUE 406,140 370,096
-------- --------
Operating Expenses:
- -------------------
Repair and Maintenance 42,410 65,957
Utilities 47,382 49,012
Managers Salaries 39,223 38,220
Management Fees 20,293 18,505
General and Administrative 36,473 42,682
Real Property Taxes and Insurance 33,969 31,526
Financial Expenses 113,445 113,484
Depreciation 70,587 70,320
Amortization 238 238
-------- --------
TOTAL OPERATING EXPENSES 404,020 429,944
-------- --------
NET INCOME (LOSS) FROM OPERATIONS $ 2,120 $(59,848)
-------- --------
-------- --------
NET INCOME (LOSS) PER UNIT
(6,041 Limited Partnership units issued
and outstanding) $ 0.35 $ (9.91)
-------- --------
-------- --------
</TABLE>
The accompanying notes are an intergral part of these Financial Statements.
5
<PAGE>
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
NINE MONTHS NINE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
1996 1995
------------- -------------
<S> <C> <C>
Operating Revenue:
- ------------------
Rental Income $1,159,386 $1,077,270
Other Rental and Interest Income 54,441 67,448
---------- ----------
TOTAL OPERATING REVENUE 1,213,827 1,144,718
---------- ----------
Operating Expenses:
- -------------------
Repair and Maintenance 133,058 202,336
Utilities 125,262 139,488
Managers Salaries 117,473 129,561
Management Fees 60,694 57,224
General and Administrative 112,653 143,996
Real Property Taxes and Insurance 100,251 94,021
Financial Expenses 342,794 344,575
Depreciation 211,761 210,960
Amortization 714 714
---------- ----------
TOTAL OPERATING EXPENSES 1,204,660 1,322,875
---------- ----------
NET INCOME (LOSS) FROM OPERATIONS $ 9,167 $ (178,157)
---------- ----------
---------- ----------
NET INCOME (LOSS) PER UNIT
(6,041 Limited Partnership units
issued and outstanding) $ 1.52 $ (29.49)
---------- ----------
---------- ----------
</TABLE>
The accompanying notes are an intergral part of these Financial Statements.
6
<PAGE>
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
STATEMENT OF PARTNER'S EQUITY
(Unaudited)
<TABLE>
<CAPTION>
NINE MONTHS
ENDED
SEPTEMBER 30,
1996
-------------
<S> <C>
Balance at January 1, 1996 $2,014,672
Net income (loss) 9,167
Cash Distributions 0
----------
BALANCE AT SEPTEMBER 30, 1996 $2,023,839
----------
----------
</TABLE>
The accompanying notes are an intergral part of these Financial Statements.
7
<PAGE>
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
NINE MONTHS NINE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
1996 1995
------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net Income/(Loss) $ 9,167 $(178,157)
-------- ---------
Adjustments to reconcile net (loss) income
to net cash provided by operating activities:
Depreciation and amortization 212,475 211,674
Change in assets - (increase) decrease:
Tenant rents receivable 0 0
Tenants security deposits (4,867) 492
Prepaid expenses (6,279) (3,114)
Restricted deposits and reserves (94,903) (47,946)
Deposits (1,337) 5,896
Change in liabilities - increase (decrease):
Accounts payable and accrued expenses 84,892 21,257
Tenants prepaid rents 1,250 (1,704)
Tenants security deposit payable 16,215 6,096
-------- ---------
Total adjustments 207,446 192,651
-------- ---------
Net cash flow provided by (used in) operating
activities: 216,613 14,494
-------- ---------
Cash flow from financing activities:
Principal reduction of long-term debt (80,654) (75,663)
Capital distributions to partners 0 0
-------- ---------
Net cash used by financing activities (80,654) (75,663)
-------- ---------
Net increase (decrease) in cash 135,959 (61,169)
Cash at beginning of Period 127,972 139,074
-------- ---------
Cash at end of Period $263,931 $ 77,905
-------- ---------
-------- ---------
Supplemental disclosures of cash flow
information:
Cash paid during the year for:
Interest expense $322,475 $ 327,467
State franchise tax 800 800
</TABLE>
The accompanying notes are an intergral part of these Financial Statements.
8
<PAGE>
Venetian Park Associates, Ltd.
Notes to Financial Statements
Nine Months Ended September 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.
9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
- -------------------------------------------------------------------------
RESULTS OF OPERATIONS.
----------------------
RESULTS OF OPERATIONS
GENERAL
- -------
Operating income for the first nine months of this year was $1,213,827 vs.
$1,144,718 during the same period last year, an increase of $69,109. Net
income jumped to $9,167 for the 1996 first nine months from a net loss of
$178,157 sustained last year during the corresponding period. This
represents a $187,324 increase in cash flow attributable to dramatic
increase in revenue and decrease in operating expenses.
The scheduled monthly rent roll for September 1996, was $147,926 vs.
$146,477 at the same time last year, an increase of $1,449. Aggregate
vacancy/delinquency losses and rental discounts were $162,593 this year
through September 30th vs. $239,589 for the corresponding period last year,
a reduction of $79,966 or 32%.
Operating expenses which were $1,204,660 for the nine months ended
September 30, were trimmed by $118,215 vs $1,322,875 during the same period
last year. There were reductions in all major categories, notably in
repairs and maintenance and variable expenses. Thanks to an
extraordinarily competent on-site maintenance crew, numerous repairs, both
major and minor, are being handled on site.
Cash accounts on September 30, 1996 amounted to $352,832 (including $88,901
in tenant refundable security deposits). The Property's FHA replacement
reserve account stood at $134,944 on September 30, 1996, vs. $114,579 on
the same date the year before.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
There were no cash distributed in September 30, 1996 to the limited
partners per HUD-FHA regulations. As set forth therein, there is a
striking improvement in operating results and our cash reserves have
mushroomed. We feel comfortable in saying that cash distributions will
resume in January accompanied by your year-end reports.
10
<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
11
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized in the City of Santa Monica of
California.
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
DATED: October 25, 1996 By
-------------------------------------
Norman Jacobson
General Partner
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 621,127
<SECURITIES> 0
<RECEIVABLES> 54,438
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 676,565
<PP&E> 11,015,288
<DEPRECIATION> 3,823,622
<TOTAL-ASSETS> 7,868,231
<CURRENT-LIABILITIES> 368,893
<BONDS> 5,475,499
0
0
<COMMON> 0
<OTHER-SE> 2,023,839
<TOTAL-LIABILITY-AND-EQUITY> 7,868,231
<SALES> 0
<TOTAL-REVENUES> 1,213,827
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 861,866
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 342,794
<INCOME-PRETAX> 9,167
<INCOME-TAX> 0
<INCOME-CONTINUING> 9,167
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,167
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
