<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
March 31, 1997 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.
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VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
REPORT ON FORM 10-Q
For the Quarter Ended March 31, 1997
INDEX
PAGE NO.
--------
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS:
Balance Sheets 3-4
Statements of Operations 5
Statements of Changes in Partners' Equity 6
Statements of Cash Flows 7
Notes to Financial Statements 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. 9
PART II. OTHER INFORMATION 10
SIGNATURE 11
2
<PAGE>
PART I. FINANCIAL INFORMATION
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
BALANCE SHEETS
ASSETS
MARCH 31, DECEMBER 31,
1997 1996
---------- ------------
CURRENT ASSETS:
Cash $ 173,125 $ 286,908
Tenants' Rents Receivable 2,778 2,778
Tenants' Security Deposits 115,516 89,460
Prepaid Expenses 12,186 24,886
---------- ---------
TOTAL CURRENT ASSETS 303,605 404,032
---------- ---------
RESTRICTED DEPOSITS & FUNDED RESERVES:
Mortgage Escrow Deposits 92,963 54,633
Reserve for Replacements 122,621 141,237
---------- ---------
TOTAL RESTRICTED DEPOSITS & RESERVES 215,584 195,870
---------- ---------
Fixed Assets, Net 7,066,382 7,136,468
---------- ---------
OTHER ASSETS:
Prepaid Loan Fees 19,483 19,722
Deposits 900 939
---------- ---------
TOTAL OTHER ASSETS 20,383 20,661
---------- ---------
TOTAL ASSETS $ 7,605,954 $ 7,757,031
---------- ---------
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
MARCH 31, DECEMBER 31,
1997 1996
---------- ------------
CURRENT LIABILITIES:
Accounts Payable & Accrued Expenses $ 63,120 $ 57,4795,641
Accrued Interest 35,466 35,4660
Tenants' Prepaid Rents 3,616 5,184
Tenants' Security Deposits 96,334 101,338
Current Portion of Long Term Debt 115,920 115,920
---------- ---------
TOTAL CURRENT LIABILITIES 314,456 315,387
---------- ---------
OTHER LIABILITIES:
Mortgage Payable - 1st Trust Deed 5,411,879 5,440,034
---------- ---------
TOTAL OTHER LIABILITIES 5,411,879 5,440,034
---------- ---------
Partners Equity 1,879,619 2,001,610
---------- ---------
TOTAL LIABILITIES AND PARTNERS EQUITY $ 7,605,954 $ 7,757,031
---------- ---------
THE ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THESE FINANCIAL STATEMENTS. 4
<PAGE>
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
STATEMENTS OF OPERATIONS
THREE MONTHS THREE MONTHS
ENDED ENDED
MARCH 31, MARCH 31,
1997 1996
------------ ------------
Operating Revenue:
Rental Income $ 357,095 $ 394,051
Other Rental and Interest Income 18,414 16,067
---------- ----------
TOTAL OPERATING REVENUE 375,509 410,118
---------- ----------
Operating Expenses:
Repair and Maintenance 55,847 45,015
Utilities 45,769 36,869
Managers Salaries 43,753 40,284
Management Fees 18,775 20,506
General and Administrative 55,783 48,747
Real Property Taxes and Insurance 33,998 33,141
Financial Expenses 112,230 114,506
Depreciation 70,086 70,587
Amortization 239 238
---------- ----------
TOTAL OPERATING EXPENSES 436,480 409,893
---------- ----------
NET INCOME (LOSS) FROM OPERATIONS $ (60,971) $ 225
---------- ----------
THE ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THESE FINANCIAL STATEMENTS. 5
<PAGE>
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
STATEMENT OF PARTNER'S EQUITY
THREE MONTHS
ENDED
MARCH 30,
1997
------------
Balance at January 1, 1997 $ 2,001,610
Net Income (loss) (60,971)
Cash Distributions (61,020)
------------
BALANCE AT MARCH 31, 1997 $ 1,879,619
------------
THE ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THESE FINANCIAL STATEMENTS. 6
<PAGE>
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
STATEMENTS OF CASH FLOWS
THREE MONTHS THREE MONTHS
ENDED ENDED
MARCH 30, MARCH 30,
1997 1996
------------ ------------
Cash flows from operating
activities: Net Income/(Loss) $ (60,971) $ 225
------------ ------------
Adjustments to reconcile
net (loss) income to net cash
provided by operating activities:
Depreciation and amortization 70,325 70,825
Change in assets - (increase) decrease:
Tenant rents receivable 0 (751)
Tenants security deposits (26,056) (3,752)
Prepaid expenses 12,700 2,067
Restricted deposits and reserves (19,714) (38,292)
Deposits 39 58
Change in liabilities - increase (decrease):
Accounts payable and accrued expenses 5,641 32,412
Tenants prepaid rents (1,568) 2,839
Tenants security deposit payable (5,004) (789)
------------ ------------
Total adjustments 36,363 64,617
------------ ------------
Net cash flow provided by (used in)
operating activities: (24,608) 64,842
------------ ------------
Cash flow from financing activities:
Principal reduction of long-term debt (28,155) (26,968)
Capital distributions to partners (61,020) 0
------------ ------------
Net cash used by financing activities (89,175) (26,968)
------------ ------------
Net increase (decrease) in cash (113,783) 37,874
Cash at beginning of Period 286,908 127,972
------------ ------------
Cash at end of Period $ 173,125 $ 165,846
------------ ------------
Supplemental disclosures of
cash flow information:
Cash paid during the year for:
Interest expense $ 103,182 $ 107,408
State franchise tax 800 800
THE ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THESE FINANCIAL STATEMENTS. 7
<PAGE>
Venetian Park Associates, Ltd.
Notes to Financial Statements
Three Months Ended March 31, 1997
1) BASIS OF PRESENTATION
See the Form 10-K for the Year Ended December 31, 1996 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.
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
RESULTS OF OPERATIONS
GENERAL
Operating income for this year's first quarter was $375,509 vs. $410,118
generated during the 1996 first quarter, a decline of $34,609 due primarily
to a sudden increase in vacancies (see below). Such increased vacancies
coupled with roof repairs and other necessary expenses as set forth below
caused the Property to sustain a negative cash flow during the 1997 first
quarter of $60,971 vs. a positive cash flow during the corresponding period
last year of $225.
The scheduled monthly rent roll for March 1997, was $148,624 vs. $147,271
at the same time the year before, an increase of $1,353. Rental losses
this year through March 31 (vacancies, net delinquencies, rental discounts)
amounted to $86,936 vs. $45,336 during the 1996 first quarter, an increase
of $41,600.
Operating expenses this year through March 31st were $436,480 vs. $409,893
during the corresponding period last year, an increase of $26,587. Of this
increase, $8,901 is attributable to increased utility expenses while
$13,000 is attributable to roof repairs and $13,320 for the construction of
a secure maintenance building as well as work space and storage for our
four-person maintenance staff.
Cash in bank on March 31, 1997 was $288,641 including $96,334 in tenants
refundable security deposits vs. $376,368 on the same date last year. On
March 31st this year our FHA replacement reserve account stood at $122,621
vs. $141,237 at the same date last year.
LIQUIDITY AND CAPITAL RESOURCES
There was cash distributed to the partners in January 1997 in the amount of
$61,020 for the 4th Quarter of 1996. Since HUD regulations restrict
distributions to a semi-annual basis, the next distribution if available,
will resume on July 1997.
9
<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 SECUTIRY 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
10
<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: March 31, 1997 By /s/ Norman Jacobson
-------------------------
Norman Jacobson
General Partner
11
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<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 504,225
<SECURITIES> 0
<RECEIVABLES> 35,347
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 539,572
<PP&E> 11,015,288
<DEPRECIATION> 3,948,906
<TOTAL-ASSETS> 7,605,954
<CURRENT-LIABILITIES> 314,456
<BONDS> 5,411,879
0
0
<COMMON> 0
<OTHER-SE> 1,879,619
<TOTAL-LIABILITY-AND-EQUITY> 7,605,954
<SALES> 0
<TOTAL-REVENUES> 375,509
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 324,250
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 112,230
<INCOME-PRETAX> (60,971)
<INCOME-TAX> 0
<INCOME-CONTINUING> (60,971)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (60,971)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
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