<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, 1999 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 March 31, 1999
INDEX
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
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
</TABLE>
<PAGE>
PART I. FINANCIAL INFORMATION
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
March 31, DECEMBER 31,
1999 1998
------------ -------------
(unaudited) (audited)
<S> <C> <C>
Current Assets:
Cash $ 42,306 $ 38,050
Tenants' Rents Receivable 2,680 2,309
Tenants' Security Deposits 97,674 97,232
Prepaid Expenses 14,045 25,660
Insurance Receivable 52,016 158,642
------------ -------------
TOTAL CURRENT ASSETS 208,721 321,893
RESTRICTED DEPOSITS & FUNDED RESERVES:
Mortgage Escrow Deposits 100,103 62,560
Reserve for Replacements 159,655 166,672
------------ -------------
TOTAL RESTRICTED DEPOSITS & RESERVES 259,758 229,232
Fixed Assets, Net 6,533,595 6,603,181
OTHER ASSETS:
Prepaid Loan Fees 17,580 17,816
Deposits 3,111 726
------------ -------------
TOTAL OTHER ASSETS 20,691 18,542
TOTAL ASSETS $ 7,022,765 $ 7,172,848
============ =============
</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>
March 31, DECEMBER 31,
1999 1998
----------- -----------
(unaudited) (audited)
<S> <C> <C>
CURRENT LIABILITIES:
Accounts Payable & accrued expenses $ 96,665 $ 186,969
Accrued Expenses - Fire Damage 7,157 0
Accrued Interest 35,466 35,466
Tenants' Prepaid Rents 9,323 5,998
Tenants' Security Deposits 89,123 89,251
Current Portion of Long Term Debt 137,777 137,777
------------ -------------
TOTAL CURRENT LIABILITIES 375,511 455,461
OTHER LIABILITIES:
Mortgage Payable - 1st Trust Deed 5,162,051 5,194,852
------------ -------------
TOTAL OTHER LIABILITIES 5,162,051 5,194,852
Partners Equity 1,485,203 1,522,535
TOTAL LIABILITIES AND PARTNERS EQUITY $ 7,022,765 $ 7,172,848
============ =============
</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
March 31, March 31,
1999 1998
------------ ------------
<S> <C> <C>
Operating Revenue:
Rental Income $ 385,166 $ 384,634
Other Rental and Interest Income 19,472 16,368
------------ ------------
TOTAL OPERATING REVENUE 404,638 401,002
Operating Expenses:
Repair and Maintenance 54,865 19,136
Utilities 47,138 48,239
Managers Salaries 53,428 44,293
Management Fees 20,321 20,075
General and Administrative 54,443 57,562
Real Property Taxes and Insurance 33,695 32,896
Financial Expenses 108,258 109,992
Depreciation 69,586 69,044
Amortization 236 239
------------ ------------
TOTAL OPERATING EXPENSES 441,970 401,476
NET INCOME (LOSS) FROM OPERATIONS $ (37,332) $ (474)
============ ============
NET INCOME (LOSS) PER UNIT
(6041 LIMITED PARTNERSHIP UNITS
ISSUED AND OUTSTANDING) $ (6.18) $ (0.08)
============ ============
</TABLE>
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
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS
ENDED
MARCH 31,
1999
------------
<S> <C>
------------
Balance at January 1, 1999 $ 1,522,535
Net income (loss) (37,332)
Cash Distributions 0
------------
BALANCE AT MARCH 31, 1999 $ 1,485,203
============
</TABLE>
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
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS
ENDED ENDED
March 31, March 31,
1999 1998
------------ ------------
<S> <C> <C>
Cash flows from operating activities: Net Income/(Loss) $ (37,332) $ (474)
Adjustments to reconcile net (loss) income to net cash
provided by operating activities:
Depreciation and amortization 69,822 69,283
Change in assets - (increase) decrease:
Tenants' rents receivable (371) (357)
Insurance receivables 106,626 0
Tenants security deposits (442) (795)
Prepaid expenses 11,615 12,511
Restricted deposits and reserves (30,526) (48,243)
Deposits (2,385) 13
Change in liabilities - increase (decrease):
Accounts payable and accrued expenses (90,304) 304
Accrued Expenses - Fire Damage 7,157 0
Tenants prepaid rents 3,325 1,973
Tenants security deposit payable (128) (7,056)
------------ ------------
Total adjustments 74,389 27,633
------------ ------------
Net cash flow provided by (used in) operating activities: 37,057 27,159
------------ ------------
Cash flow from financing activities:
Principal reduction of long-term debt (32,801) (30,391)
Capital distributions to partners 0 0
------------ ------------
Net cash used by financing activities (32,801) (30,391)
------------ ------------
Net increase (decrease) in cash 4,256 (3,232)
Cash at beginning of Period 38,050 51,337
------------ ------------
Cash at end of Period $ 42,306 $ 48,105
============ ============
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest expense $ 101,575 $ 103,984
State franchise tax $ 800 $ 800
</TABLE>
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, 1999
1) BASIS OF PRESENTATION
See the Form 10-K for the Year Ended December 31, 1998 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.
Page 8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
RESULTS OF OPERATIONS
General
Operating income for the 1999 first quarter was $404,638 vs. $401,002
during the corresponding period last year, an increase of $3,636. Rental
losses persist (vacancies, delinquencies and rental discounts) and were
$85,548 during the 1999 first quarter vs. $68,515 during the previous
year's first quarter, an increase of $17,033. The increase in rental losses
was sustained despite, and not because of, a reduction in rental incentives
from $10,960 during the first quarter of 1998 to $6,170 during the first
quarter of this year. Although it's no consolation, vacancy rates among
buildings and in locations comparable to Venetian Park's are experiencing
similar vacancy losses at this time base on data received from continuing
rent surveys
Operating expenses during the quarter ended March 31, 1999 were $441,970
vs. $401,476 during the corresponding period last year, an increase of
$40,494 due primarily to increase in repairs and maintenance by $35,729;
$54,865 vs. $19,136 during the corresponding period last year.
Because of work still underway in rehabilitating the Property preparatory
to refinancing and/or sale, net loss this year through March 31 was $37,332
vs. a net loss of $474 during the corresponding period last year. Only a
slight improvement is anticipated during the second quarter of this year as
we have earmarked funds for replacement of leaking roofs, repair of
tree-damaged walkways, continued exterior painting, carport repairs, etc.
At the end of this year's first quarter, the Property's FHA replacement
reserve account had a balance of $159,655. The Property's cash accounts
stood at $139,980 (including $97,674 in tenant refundable security
deposits) vs. $135,282 last year at the same time.
LIQUIDITY AND CAPITAL RESOURCES
The partnership did not diclare nor cash were distributed to the partners
for the first quarter of March 31, 1999 until the Property generates a more
substantial ongoing cash flow than that which now prevail.
Page 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 SECURITY HOLDERS
Not Applicable
ITEM 5. OTHER INFORMATION
Not Applicable
ITEM 6. EXHIBITS AND REPORTS OF 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
Page 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, 1999 /s/ Norman Jacobson
--------------------------------
Norman Jacobson
General Partner
Page 11
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 399,738
<SECURITIES> 0
<RECEIVABLES> 89,432
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 489,170
<PP&E> 11,071,027
<DEPRECIATION> 4,537,432
<TOTAL-ASSETS> 7,022,765
<CURRENT-LIABILITIES> 375,511
<BONDS> 5,162,051
0
0
<COMMON> 0
<OTHER-SE> 1,485,203
<TOTAL-LIABILITY-AND-EQUITY> 7,022,765
<SALES> 0
<TOTAL-REVENUES> 404,638
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 263,890
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 178,080
<INCOME-PRETAX> (37,332)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (37,332)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
