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FORM 10Q/A
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, 2000 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 MARCH 31, 2000
INDEX
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<CAPTION>
PAGE NO.
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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. 9-10
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. 10
PART II. OTHER INFORMATION 11
SIGNATURE 12
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PART I. FINANCIAL INFORMATION
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
BALANCE SHEETS
ASSETS
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<CAPTION>
MARCH 31, DECEMBER 31,
2000 1999
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(UNAUDITED) (AUDITED)
<S> <C> <C>
CURRENT ASSETS:
Cash $ 423,130 $ 300,521
Tenants' Rents Receivable 2,190 3,356
Other Receivables and Deposits 1,023 214,670
Prepaid Expenses 9,011 17,250
Insurance Receivable 0 0
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TOTAL CURRENT ASSETS 435,354 535,797
RESTRICTED DEPOSITS & FUNDED RESERVES:
Mortgage Escrow Deposits 79,850 45,261
Reserve for Replacements 760,852 835,460
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TOTAL RESTRICTED DEPOSITS & RESERVES 840,702 880,721
Fixed Assets, Net 6,668,137 6,446,296
OTHER ASSETS:
Prepaid Loan Fees 144,579 148,318
Deposits 2,135 0
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TOTAL OTHER ASSETS 146,714 148,318
TOTAL ASSETS $ 8,090,907 $ 8,011,132
=========================== ===========================
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
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VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
BALANCE SHEETS
LIABILITIES AND PARTNERS' EQUITY
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<CAPTION>
MARCH 31, DECEMBER 31,
2000 1999
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(UNAUDITED) (AUDITED)
<S> <C> <C>
CURRENT LIABILITIES:
Accounts Payable & accrued expenses $ 88,104 $ 65,619
Accounts Payable - Contruction 282,357 0
Accrued Interest 42,456 42,456
Tenants' Prepaid Rents 9,353 6,428
Tenants' Security Deposits 98,091 96,825
Current Portion of Long Term Debt 192,430 192,430
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TOTAL CURRENT LIABILITIES 712,791 403,758
OTHER LIABILITIES:
Mortgage Payable - 1st Trust Deed 6,094,752 6,247,163
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TOTAL OTHER LIABILITIES 6,094,752 6,247,163
Partners Equity 1,283,364 1,360,211
TOTAL LIABILITIES AND PARTNERS EQUITY $ 8,090,907 $ 8,011,132
=========================== ===========================
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
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VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
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<CAPTION>
THREE MONTHS THREE MONTHS
ENDED ENDED
MARCH 31, MARCH 31,
2000 1999
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<S> <C> <C>
Operating Revenue:
Rental Income $ 453,336 $ 385,166
Other Rental and Interest Income 18,353 19,472
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TOTAL OPERATING REVENUE 471,689 404,638
Operating Expenses:
Repair and Maintenance 123,713 54,865
Utilities 50,332 47,138
Managers Salaries 59,556 53,428
Management Fees 23,577 20,321
General and Administrative 57,404 54,443
Real Property Taxes and Insurance 33,741 33,695
Financial Expenses 126,703 108,258
Depreciation 69,771 69,586
Amortization 3,739 236
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TOTAL OPERATING EXPENSES 548,536 441,970
NET INCOME (LOSS) FROM OPERATIONS $ (76,847) $ (37,332)
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NET INCOME (LOSS) PER UNIT
(6041 LIMITED PARTNERSHIP UNITS ISSUED AND OUTSTANDING) $ (12.72) $ (6.18)
=========================== ===========================
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
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VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
STATEMENT OF PARTNER'S EQUITY
(Unaudited)
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<CAPTION>
THREE MONTHS
ENDED
MARCH 31,
2000
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<S> <C>
BALANCE AT JANUARY 1, 2000 $ 1,360,211
Net income (loss) (76,847)
Cash Distributions 0
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BALANCE AT MARCH 31, 2000 $ 1,283,364
===========================
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
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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,
2000 1999
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<S> <C> <C>
Cash flows from operating activities: Net Income/(Loss) $ (76,847) $ (37,332)
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Adjustments to reconcile net (loss) income to net cash provided by (used in)
operating activities:
Depreciation and amortization 73,510 69,822
Change in assets - (increase) decrease:
Tenants' rents receivable 1,166 (371)
Insurance receivables 0 106,626
Other receivables and deposits 213,647 (442)
Prepaid expenses 8,239 11,615
Restricted deposits and reserves 40,019 (30,526)
Deposits (2,135) (2,385)
Change in liabilities - increase (decrease):
Accounts payable and accrued expenses 22,485 (83,147)
Accounts payable - construction 282,357 0
Tenants prepaid rents 2,925 3,325
Tenants security deposit payable 1,266 (128)
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Total adjustments 643,479 74,389
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NET CASH FLOW PROVIDED BY (USED IN) OPERATING ACTIVITIES: 566,632 37,057
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CASH FLOW FROM INVESTING ACTIVITIES:
ACQUISITON OF FIXED ASSETS (291,612) -
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Net cash (used in) investing activities (291,612) 0
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CASH FLOW FROM FINANCING ACTIVITIES:
Principal reduction of long-term debt (152,411) (32,801)
Capital distributions to partners 0 0
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Net cash (used in) financing activities (152,411) (32,801)
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NET INCREASE (DECREASE) IN CASH 122,609 4,256
CASH AT BEGINNING OF PERIOD 300,521 38,050
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CASH AT END OF PERIOD $ 423,130 $ 42,306
========== ===========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the year
for:
Interest expense $ 125,600 $ 101,575
State franchise tax $ 800 $ 800
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
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VENETIAN PARK ASSOCIATES, LTD.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 2000
1) BASIS OF PRESENTATION
SEE THE FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 1999 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.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
RESULTS OF OPERATIONS
GENERAL
Operating income for the quarter ending March 31, 2000 was $471,689 vs.
$404,638, a jump of $67,051. Net income this year through March 31 was a net
loss of $76,847 vs. a net loss of $37,332 during the corresponding period last
year, an increase of $39,515 due to an ongoing property refurbishing program.
The scheduled monthly rent roll for March, 2000, was $164,093 vs. $158,105 at
the same time last year, an increase of $5,988. With the Property's exterior
more than 50% painted coupled with a long-awaited improvement in the Stockton
rental market, rental losses (vacancies, net delinquencies and rental discounts)
were slashed by $50,965 from $85,548 during last year's first quarter to $34,583
this year through March 31. When I visited the Property on April 5, 2000, only
11 apartments were available for rent out of a total 295 units. A good part of
the vacancy loss cut was directly attributable to refurbishing with refinancing
proceeds several of the out-of-service apartments we could not afford to repair
prior to such refinancing.
Exclusive of expenses incurred for the refurbishing program, operating expenses
during the first quarter of this year were $298,516 vs. $254,443 during the
first quarter last year, an increase of $44,073. Almost half of this increase
was attributable to replacement costs incurred in refurbishing out-of-service
apartments.
Debt service on the new loan was $138,418 during this year's first quarter vs.
$141,059 on the old loan during last year's first quarter, a decrease of $2,641.
Cash in the bank March 31, 2000 was $423,130 (including $104,365 in tenant
refundable security deposits) vs. $139,980 at the same time the year before.
Also, as noted on the enclosed Balance Sheet, $741,601 is being held by the
lender in the repair escrow account. This figure represents 125% of the funds
remaining to complete the rehabilitation program.
Due to steady rains during the first quarter of this year, the roofing work was
halted from time to time. Presently, roofs covering 34 units have been
completed. With good weather underway, the roofing contractor anticipates that
the work will be complete within four months. Likewise, painting was delayed but
is now proceeding at a rapid pace and should be completed by mid to late May.
While our original budget estimate for paving, seal coating and restriping the
driveways and parking areas was $132,000, we've have managed to negotiate a
contract with one of the leading local paving companies for approximately
$80,000. The savings have enabled us to budget for a maintenance shop addition
attached to one of the existing structures (freeing an apartment used for that
purpose) and expand and redecorate the rental office. At the same time, we will
have additional funds to cover part or all of dry rot repair beneath the old
roofs which, by necessity and custom, was not included in the roofing bid.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
LIQUIDITY AND CAPITAL RESOURCES
Cash distribution in the amount of $5.75 per each 1/6041 Partnership Interest or
a total of $34,735.75 was distributed representing cash flow from normal
operations (excludes rehabilitation expenditures.)
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
The partnership purchased an existing Apartment Complex with a total of 295
units comprised of four separate apartment projects operated under Section
221(d)(4) of the National Housing Act. The partnership is economically dependent
on the Stockton, California rental market.
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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
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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: SEPTEMBER 11, 2000 BY /s/ NORMAN JACOBSON
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NORMAN JACOBSON
GENERAL PARTNER
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