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Previous: PHOENIX MEDICAL TECHNOLOGY INC, 10QSB, 1998-08-11 |
Next: HCW PENSION REAL ESTATE FUND LTD PARTNERSHIP, 10QSB, 1998-08-11 |
<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
June 30, 1998 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 June 30, 1998
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>
June 30, DECEMBER 31,
1998 1997
----------- --------------
(unaudited) (audited)
<S> <C> <C>
Current Assets:
- --------------
Cash $ 40,146 $ 51,337
Tenants' Rents Receivable 25,668 2,778
Tenants' Security Deposits 103,023 108,486
Prepaid Expenses 15,825 24,019
------------ ------------
TOTAL CURRENT ASSETS 184,662 186,620
------------ ------------
Restricted Deposits & Funded Reserves:
- -------------------------------------
Mortgage Escrow Deposits 77,982 66,682
Reserve for Replacements 154,086 141,500
------------ ------------
TOTAL RESTRICTED DEPOSITS & RESERVES 232,068 208,182
------------ ------------
Fixed Assets, Net 6,722,203 6,860,291
------------ ------------
Other Assets:
- ------------
Prepaid Loan Fees 18,291 18,769
Deposits 10,000 13
------------ ------------
TOTAL OTHER ASSETS 28,291 18,782
------------ ------------
TOTAL ASSETS $ 7,167,224 $ 7,273,875
------------ ------------
------------ ------------
</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>
June 30, DECEMBER 31,
1998 1997
----------- -------------
(unaudited) (audited)
<S> <C> <C>
Current Liabilities:
Accounts Payable & Accrued Expenses $ 61,835 $ 88,656
Accrued Interest 35,466 35,466
Tenants' Prepaid Rents 6,838 1,276
Tenants' Security Deposits 89,119 100,178
Current Portion of Long Term Debt 127,095 127,095
------------ ------------
TOTAL CURRENT LIABILITIES 320,353 352,671
------------ ------------
Other Liabilities:
Mortgage Payable - 1st Trust Deed 5,251,571 5,312,939
------------ ------------
TOTAL OTHER LIABILITIES 5,251,571 5,312,939
------------ ------------
Partners Equity 1,595,300 1,608,265
------------ ------------
TOTAL LIABILITIES AND PARTNERS EQUITY $ 7,167,224 $ 7,273,875
------------ ------------
------------ ------------
</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
June 30, June 30,
1998 1997
------------ -------------
<S> <C> <C>
Operating Revenue:
Rental Income $ 378,375 $ 339,833
Other Rental and Interest Income 13,645 23,436
------------ -------------
TOTAL OPERATING REVENUE 392,020 363,269
------------ -------------
Operating Expenses:
Repair and Maintenance 58,894 103,922
Utilities 45,647 41,878
Managers Salaries 47,070 45,510
Management Fees 22,970 18,128
General and Administrative 16,786 51,057
Real Property Taxes and Insurance 32,895 33,995
Financial Expenses 110,966 111,145
Depreciation 69,044 70,086
Amortization 239 239
------------ -------------
TOTAL OPERATING EXPENSES 404,511 475,960
------------ -------------
NET INCOME (LOSS) FROM OPERATIONS $ (12,491) $ (112,691)
------------ -------------
------------ -------------
NET INCOME (LOSS) FROM OPERATIONS
(6,041 Limited Partnership units issued and outstanding) $ (2.07) $ (18.65)
------------ -------------
------------ -------------
</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>
SIX MONTHS SIX MONTHS
ENDED ENDED
June 30, June 30,
1998 1997
----------- ------------
<S> <C> <C>
Operating Revenue:
Rental Income $ 763,009 $ 696,928
Other Rental and Interest Income 30,013 41,850
----------- ------------
TOTAL OPERATING REVENUE 793,022 738,778
----------- ------------
Operating Expenses:
Repair and Maintenance 78,030 159,769
Utilities 93,886 87,647
Managers Salaries 91,363 89,263
Management Fees 43,045 36,903
General and Administrative 74,348 106,840
Real Property Taxes and Insurance 65,791 67,993
Financial Expenses 220,958 223,375
Depreciation 138,088 140,172
Amortization 478 478
----------- ------------
TOTAL OPERATING EXPENSES 805,987 912,440
----------- ------------
NET INCOME (LOSS) FROM OPERATIONS $ (12,965) $ (173,662)
----------- ------------
----------- ------------
NET INCOME (LOSS) PER UNIT
(6041 Limited Partnership units issued and
outstanding) $ (2.15) $ (28.75)
----------- ------------
----------- ------------
</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>
SIX MONTHS
ENDED
June 30,
1998
--------------
<S> <C>
Balance at January 1, 1998 $ 1,608,265
Net income (loss) (12,965)
Cash Distributions 0
--------------
BALANCE AT JUNE 30, 1998 $ 1,595,300
--------------
</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>
SIX MONTHS SIX MONTHS
ENDED ENDED
June 30, June 30,
1998 1997
------------ ------------
<S> <C> <C>
Cash flows from operating activities: Net Income/(Loss) $ (12,965) $ (173,662)
------------ ------------
Adjustments to reconcile net (loss) income to net cash
provided by operating activities:
Depreciation and amortization 138,566 140,650
Change in assets - (increase) decrease:
Tenant rents receivable (22,890) 0
Tenants security deposits 5,463 (26,056)
Prepaid expenses 8,194 12,700
Restricted deposits and reserves (23,886) (19,714)
Deposits (9,987) 39
Change in liabilities - increase (decrease):
Accounts payable and accrued expenses (26,821) 5,641
Tenants prepaid rents 5,562 (1,568)
Tenants security deposit payable (11,059) (5,004)
------------ ------------
Total adjustments 63,142 106,688
------------ ------------
Net cash flow provided by (used in) operating activities: 50,177 (66,974)
------------ ------------
Cash flow from financing activities:
Principal reduction of long-term debt (61,368) (28,155)
Capital distributions to partners 0 (61,020)
------------ ------------
Net cash used by financing activities (61,368) (89,175)
------------ ------------
Net increase (decrease) in cash (11,191) (156,149)
Cash at beginning of Period 51,337 286,908
------------ ------------
Cash at end of Period $ 40,146 $ 130,759
------------ ------------
------------ ------------
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest expense $ 207,382 $ 215,198
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
Six Months Ended June 30, 1998
1) BASIS OF PRESENTATION
---------------------
See the Form 10-K for the Year Ended December 31, 1997 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 six months ended June 30, 1998 was $793,022 vs.
$738,778, a gain of $54,244. Net Income through June 30, 1988 has improved
by $160,697 from a negative cash flow of $12,965 this year vs. a negative
cash flow of $173,662 sustained during the 1997 first half.
Rental Collection this year through June 30 was $763,009 vs. $696,928 last
year through the same date, an increase of $66,081.
Total Operating Expenses were $805,987 during the 1998 first half vs.
$912,440 during the 1997 first half, a cut of $106,453. We have one of the
best on-site maintenance and painting staffs we've had in many years and
they're helping us hold down expenses by performing much of the work on
site that had previously been contracted out to independent firms.
Cash in bank on June 30, 1998 was $40,146 vs. $51,337 at the same time the
year before. Tenant Security Deposits on hand stood at $ $103,023 vs.
$108,486 at the same time last year. On June 30, 1998, the Property's FHA
replacement reserve account stood at $154,086 vs. $128,914 last year at the
same time.
When the vacancy factor, now running at approximately 13%, is reduced to
more acceptable levels, we shall move to refinance the Property in order to
lower mortgage payments and at the same time generate sufficient funds to
replace the roof and complete the exterior paint program at the Property.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Although this year's second quarter operating results are substantially
improved over last year's first quarter, no cash distributions can be made
until the Property generates a more substantial ongoing cash flow than that
which now prevails.
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: July 31, 1998 By /s/ Norman Jacobson
---------------------------
Norman Jacobson
General Partner
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 375,237
<SECURITIES> 0
<RECEIVABLES> 25,668
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 400,905
<PP&E> 11,015,288
<DEPRECIATION> 4,248,969
<TOTAL-ASSETS> 7,167,224
<CURRENT-LIABILITIES> 320,353
<BONDS> 5,251,571
0
0
<COMMON> 0
<OTHER-SE> 1,595,300
<TOTAL-LIABILITY-AND-EQUITY> 7,167,224
<SALES> 0
<TOTAL-REVENUES> 392,020
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 293,545
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 110,966
<INCOME-PRETAX> (12,491)
<INCOME-TAX> 0
<INCOME-CONTINUING> (12,491)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (12,491)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
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