<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, 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
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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 .
--- ---
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 September 30, 1997
INDEX
Page No.
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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
2
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PART I. FINANCIAL INFORMATION
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
BALANCE SHEETS
ASSETS
SEPTEMBER 30, DECEMBER 31,
1997 1996
------------- ------------
(unaudited)
CURRENT ASSETS:
Cash $ 65,580 $ 286,908
Tenants' Rents Receivable 2,778 2,778
Tenants' Security Deposits 105,674 89,460
Prepaid Expenses 38,201 24,886
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TOTAL CURRENT ASSETS 212,233 404,032
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RESTRICTED DEPOSITS & FUNDED RESERVES:
Mortgage Escrow Deposits 77,047 54,633
Reserve for Replacements 135,207 141,237
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TOTAL RESTRICTED DEPOSITS & RESERVES 212,254 195,870
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Fixed Assets, Net 6,926,210 7,136,468
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OTHER ASSETS:
Prepaid Loan Fees 19,005 19,722
Deposits 0 939
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TOTAL OTHER ASSETS 19,005 20,661
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TOTAL ASSETS $ 7,369,702 $ 7,757,031
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The accompanying notes are an intergral part of these Financial Statements. 3
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VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
BALANCE SHEETS
LIABILITIES AND PARTNERS' EQUITY
SEPTEMBER 30, DECEMBER 31,
1997 1996
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(unaudited)
CURRENT LIABILITIES:
Accounts Payable & Accrued Expenses $ 111,263 $ 57,479
Accrued Interest 35,466 35,466
Tenants' Prepaid Rents 7,292 5,184
Tenants' Security Deposits 104,390 101,338
Current Portion of Long Term Debt 115,920 115,920
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TOTAL CURRENT LIABILITIES 374,331 315,387
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OTHER LIABILITIES:
Mortgage Payable - 1st Trust Deed 5,353,930 5,440,034
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TOTAL OTHER LIABILITIES 5,353,930 5,440,034
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Partners Equity 1,641,441 2,001,610
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TOTAL LIABILITIES AND PARTNERS EQUITY $ 7,369,702 $ 7,757,031
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The accompanying notes are an intergral part of these Financial Statements. 4
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VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
THREE MONTHS THREE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
1997 1996
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Operating Revenue:
Rental Income $ 348,392 $ 385,566
Other Rental and Interest Income 13,931 20,574
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TOTAL OPERATING REVENUE 362,323 406,140
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Operating Expenses:
Repair and Maintenance 108,443 42,410
Utilities 43,505 47,382
Managers Salaries 49,681 39,223
Management Fees 18,152 20,293
General and Administrative 49,248 36,473
Real Property Taxes and Insurance 34,964 33,969
Financial Expenses 113,492 113,445
Depreciation 70,086 70,587
Amortization 239 238
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TOTAL OPERATING EXPENSES 487,810 404,020
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NET INCOME (LOSS) FROM OPERATIONS $ (125,487) $ 2,120
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NET INCOME (LOSS) FROM OPERATIONS
(6,041 Limited Partnership units issued and
outstanding) $ (20.77) $ 0.35
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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)
NINE MONTHS NINE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
1997 1996
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Operating Revenue:
Rental Income $ 1,045,320 $ 1,159,386
Other Rental and Interest Income 55,781 54,441
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TOTAL OPERATING REVENUE 1,101,101 1,213,827
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Operating Expenses:
Repair and Maintenance 268,212 133,058
Utilities 131,152 125,262
Managers Salaries 138,944 117,473
Management Fees 55,055 60,694
General and Administrative 156,088 112,653
Real Property Taxes and Insurance 102,957 100,251
Financial Expenses 336,867 342,794
Depreciation 210,258 211,761
Amortization 717 714
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TOTAL OPERATING EXPENSES 1,400,250 1,204,660
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NET INCOME (LOSS) FROM OPERATIONS $ (299,149) $ 9,167
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NET INCOME (LOSS) PER UNIT
(6041 Limited Partnership units issued and
outstanding) $ (49.52) $ 1.52
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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)
NINE MONTHS
ENDED
SEPTEMBER 30,
1997
-------------
Balance at January 1, 1997 $ 2,001,610
Net income (loss) (299,149)
Cash Distributions (61,020)
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BALANCE AT SEPTEMBER 30, 1997 $ 1,641,441
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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)
NINE MONTHS NINE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
1997 1996
Cash flows from operating activities: Net
Income/(Loss) $ (299,149) $ 9,167
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Adjustments to reconcile net (loss) income
to net cash provided by operating activities:
Depreciation and amortization 210,975 212,475
Change in assets - (increase) decrease:
Tenant rents receivable 0 0
Tenants security deposits (16,214) (4,867)
Prepaid expenses (13,315) (6,279)
Restricted deposits and reserves (16,384) (94,903)
Deposits 939 (1,337)
Change in liabilities - increase (decrease):
Accounts payable and accrued expenses 53,784 84,892
Tenants prepaid rents 2,108 1,250
Tenants security deposit payable 3,052 16,215
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Total adjustments 224,945 207,446
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Net cash flow provided by (used in) operating
activities: (74,204) 216,613
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Cash flow from financing activities:
Principal reduction of long-term debt (86,104) (80,654)
Capital distributions to partners (61,020) 0
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Net cash used by financing activities (147,124) (80,654)
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Net increase (decrease) in cash (221,328) 135,959
Cash at beginning of Period 286,908 127,972
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Cash at end of Period $ 65,580 $ 263,931
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Supplemental disclosures of cash flow
information:
Cash paid during the year for:
Interest expense $ 316,012 $ 322,475
State franchise tax $ 800 $ 800
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, 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.
9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
RESULTS OF OPERATIONS
GENERAL
Operating Income for the nine months ended September 30, 1997, was
$1,101,101 during which time we sustained a negative cash flow of $299,149
vs. $1,213,827 during the corresponding period last year, a decline of
$112,726.
The scheduled monthly rent roll for September, 1997, was $151,328 vs,
$147,926 during the same month last year, a jump of $3,402. Rental losses
this year through September 30 were $293,190 vs. $162,593 last year through
the same date, an increase of $130,597. Overall tenant profile had
improved substantially. Presently, we have a larger proportion of
"seniors" than before and notices to vacate are no longer overwhelming us.
Further, the Property's vacancy factor which has average 15.79% this year
was down to 8.33% during September. Operating results as set forth below
reflect the heavy expenditures made which have enabled us to achieve our
current goal.
The complex is undergoing rehabilitation which requires operating reserves
to be used for that purpose. The current rehabilitation phase, except for
work required in vacated apartments and roof work currently underway, is
fundamentally complete and appears to be serving us in terms of rental
activity and retention of existing tenants. We have spent over $56,000
more this year through September 30 than last year by that date for
exterior and interior painting, roof repairs, boiler replacements,
construction of a maintenance office and pool repairs. We have also spent
$46,000 more this year in replacement cost.
On September 30, 1997, the Property's cash accounts amounted to $171,254
including $104,390 in tenant refundable security deposits. Last year on
the same date, the cash accounts contained $352,832 including $103,466 in
refundable deposits. On September 30th of this year, the Property's FHA
replacement reserve account contained $135,207 vs. $134,944 at the same
time last year.
LIQUIDITY AND CAPITAL RESOURCES
The last time cash was distributed to the partners was 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 January, 1998.
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 31, 1997 By /s/ Norman Jacobson
---------------------------
Norman Jacobson
General Partner
12
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<PAGE>
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<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 383,508
<SECURITIES> 0
<RECEIVABLES> 59,984
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 443,492
<PP&E> 11,015,288
<DEPRECIATION> 4,089,078
<TOTAL-ASSETS> 7,369,702
<CURRENT-LIABILITIES> 374,331
<BONDS> 5,353,930
0
0
<COMMON> 0
<OTHER-SE> 1,641,441
<TOTAL-LIABILITY-AND-EQUITY> 7,369,702
<SALES> 0
<TOTAL-REVENUES> 1,101,101
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,063,383
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 336,867
<INCOME-PRETAX> (299,149)
<INCOME-TAX> 0
<INCOME-CONTINUING> (299,149)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (299,149)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>