<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, 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
-------------------------------------
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 SEPTEMBER 30, 2000
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. 10-11
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. 11
PART II. OTHER INFORMATION 12
SIGNATURE 13
</TABLE>
2
<PAGE>
PART I. FINANCIAL INFORMATION
VENETIAN PARK ASSOCIATES, LTD.
(A California Limited Partnership)
BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
(unaudited) (audited)
---------- ----------
<S> <C> <C>
CURRENT ASSETS:
Cash $ 181,680 $ 300,521
Tenants' Rents Receivable 2,592 3,356
Other Receivables and Deposits 101,826 214,670
Prepaid Expenses 30,714 17,250
---------- ----------
TOTAL CURRENT ASSETS 316,812 535,797
---------- ----------
RESTRICTED DEPOSITS & FUNDED RESERVES:
Mortgage Escrow Deposits 55,780 45,261
Reserve for Replacements 559,053 835,460
---------- ----------
TOTAL RESTRICTED DEPOSITS & RESERVES 614,833 880,721
---------- ----------
Fixed Assets, Net 6,715,985 6,446,296
OTHER ASSETS:
Prepaid Loan Fees, Net 137,101 148,318
Deposits 5,834 0
---------- ----------
TOTAL OTHER ASSETS 142,935 148,318
---------- ----------
---------- ----------
TOTAL ASSETS $7,790,565 $8,011,132
========== ==========
</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>
September 30, December 31,
2000 1999
(unaudited) (audited)
----------- ----------
<S> <C> <C>
CURRENT LIABILITIES:
Accounts Payable & accrued expenses $ 75,152 $ 65,619
Accounts Payable - Contruction 116,813 0
Accrued Interest 42,456 42,456
Tenants' Prepaid Rents 8,976 6,428
Tenants' Security Deposits 98,223 96,825
Current Portion of Long Term Debt 192,430 192,430
---------- ----------
TOTAL CURRENT LIABILITIES 534,050 403,758
---------- ----------
OTHER LIABILITIES:
Mortgage Payable - 1st Trust Deed 6,068,339 6,247,163
---------- ----------
TOTAL OTHER LIABILITIES 6,068,339 6,247,163
---------- ----------
Partners Equity 1,188,176 1,360,211
---------- ----------
TOTAL LIABILITIES AND PARTNERS EQUITY $7,790,565 $8,011,132
========== ==========
</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
September 30, September 30,
2000 1999
------------- -------------
<S> <C> <C>
Operating Revenue:
Rental Income $ 464,869 $ 426,508
Other Rental and Interest Income 19,915 17,643
--------- ---------
TOTAL OPERATING REVENUE 484,784 444,151
--------- ---------
Operating Expenses:
Repair and Maintenance 81,736 54,932
Utilities 52,698 51,362
Managers Salaries 53,472 53,834
Management Fees 26,584 22,194
General and Administrative 47,689 55,615
Real Property Taxes and Insurance 36,608 34,257
Financial Expenses 123,977 108,187
Depreciation 69,771 69,586
Amortization 3,739 236
--------- ---------
TOTAL OPERATING EXPENSES 496,274 450,203
--------- ---------
NET INCOME (LOSS) FROM OPERATIONS $ (11,490) $ (6,052)
--------- ---------
NET INCOME (LOSS) FROM OPERATIONS
(6,041 Limited Partnership units issued and outstanding) $ (1.90) $ (1.00)
--------- ---------
</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>
NINE MONTHS NINE MONTHS
ENDED ENDED
September 30, September 30,
2000 1999
----------- ------------
<S> <C> <C>
Operating Revenue:
Rental Income $ 1,373,666 $ 1,215,983
Other Rental and Interest Income 56,601 47,570
----------- ------------
TOTAL OPERATING REVENUE 1,430,267 1,263,553
----------- ------------
Operating Expenses:
Repair and Maintenance 345,635 209,583
Utilities 142,133 145,716
Managers Salaries 165,776 164,551
Management Fees 78,057 63,253
General and Administrative 135,321 146,941
Real Property Taxes and Insurance 104,091 101,646
Financial Expenses 376,023 326,495
Depreciation 209,313 208,758
Amortization 11,217 708
----------- ------------
TOTAL OPERATING EXPENSES 1,567,566 1,367,651
NET INCOME (LOSS) FROM OPERATIONS $ (137,299) $ (104,098)
=========== ===========
NET INCOME (LOSS) PER UNIT
(6041 Limited Partnership units issued and outstanding) $ (22.73) $ (17.23)
=========== ===========
</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>
NINE MONTHS
ENDED
September 30,
2000
------------
<S> <C>
Balance at January 1, 2000 $ 1,360,211
Net income (loss) (137,299)
Cash Distributions (34,736)
------------
BALANCE AT SEPTEMBER 30, 2000 $ 1,188,176
============
</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>
NINE MONTHS NINE MONTHS
ENDED ENDED
September 30, September 30,
2000 1999
------------- -------------
<S> <C> <C>
Cash flows from operating activities: Net Income/(Loss) $(137,299) $(104,098)
--------- ---------
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 220,530 209,466
Change in assets - (increase) decrease:
Tenants' rents receivable 764 (970)
Insurance receivables 0 120,626
Other receivables and deposits 112,844 (2,258)
Prepaid expenses (13,464) (18,556)
Restricted deposits and reserves 265,888 (12,401)
Deposits (5,834) (15,624)
Change in liabilities - increase (decrease):
Accounts payable and accrued expenses 9,533 (84,442)
Accounts payable - construction 116,813 0
Tenants prepaid rents 2,548 2,582
Tenants security deposit payable 1,398 6,947
--------- ---------
Total adjustments 711,020 205,370
--------- ---------
Net cash flow provided by (used in) operating activities: 573,721 101,272
--------- ---------
Cash flow from investing activities:
Acquisiton of fixed assets (479,002) --
--------- ---------
Net cash (used in) investing activities (479,002) 0
--------- ---------
Cash flow from financing activities:
Principal reduction of long-term debt (178,824) (100,287)
Capital distributions to partners (34,736) 0
--------- ---------
Net cash (used in) financing activities (213,560) (100,287)
--------- ---------
Net increase (decrease) in cash (118,841) 985
Cash at beginning of Period 300,521 38,050
--------- ---------
Cash at end of Period $ 181,680 $ 39,035
========= =========
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest expense $ 377,126 $ 304,689
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
NINE MONTHS ENDED SEPTEMBER 30, 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.
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 30TH MUSHROOMED BY $166,714
FROM $1,263,553 LAST YEAR THROUGH SEPTEMBER 30TH TO $1,430,267 THIS YEAR THROUGH
THE SAME DATE. AT THE SAME TIME, A NET LOSS OF $137,299 WAS BOOKED DURING THE
PERIOD OF JANUARY 2000 THROUGH SEPTEMBER 2000 VS. A NET LOSS OF $104,098 LAST
YEAR DURING THE SAME PERIOD.
ON SEPTEMBER 30, 2000 THE SCHEDULED MONTHLY RENT ROLL WAS $170,026 VS. $161,390
AT THE SAME TIME LAST YEAR, AN INCREASE OF $8,636 OR 5.35%. DESPITE THE RENT
INCREASES, RENTAL LOSSES (VACANCIES, NET DELINQUENCIES AND RENTAL DISCOUNTS)
PLUMMETED TO $113,043 FROM $211,769 THE YEAR BEFORE, A REDUCTION OF $98,727 OR
46.62%. KEEP IN MIND THAT SIGNIFICANT RENT INCREASES HAVE RECENTLY BEGUN AND CAN
ONLY TAKE EFFECT WHEN LEASES ARE RENEWED OR WHEN NEW TENANTS MOVE IN. THE FULL
EFFECT OF THE CURRENT RENT INCREASE PROGRAM AND THE RESULTS THEREFROM WILL
BECOME MORE EVIDENT DURING THE NEXT FOUR TO SIX MONTHS.
OPERATING EXPENSES THIS YEAR THROUGH SEPTEMBER 30TH WERE $1,567,566 VS.
$1,367,651 DURING THE CORRESPONDING PERIOD LAST YEAR, AN INCREASE OF $199,915
DUE PRIMARILY TO THE $111,720 BUILDING EXTERIOR PAINTING AND INCREASES IN
CERTAIN FIXED EXPENSES, REPLACEMENTS AND REPAIRS/MAINTENANCE. HOWEVER, VARIABLE
EXPENSES WERE TRIMMED DUE TO DECREASES IN ADVERTISING, ACCOUNTING FEES, LEGAL
FEES AND LANDSCAPE COSTS. AT THE SAME TIME WE RECEIVED A GAS CREDIT FROM THE
UTILITY COMPANY IN THE AMOUNT OF $4,000 FOR A PREVIOUS OVERCHARGE OF ESTIMATED
BILLING.
DEBT SERVICE THIS YEAR ON THE REFINANCED FIRST MORTGAGE LOAN WAS $415,254 VS.
$422,940 LAST YEAR DURING THE SAME PERIOD, A $7,686 DECREASE.
ON SEPTEMBER 30, 2000, THE PARTNERSHIP'S CASH ACCOUNTS STOOD AT $181,680 VS.
$300,521 LAST YEAR AT THE SAME TIME. IN ADDITION, ON SEPTEMBER 30, 2000, WE HAD
$614,833 IN THE PROPERTY'S REPLACEMENT RESERVE ACCOUNT PLUS IMPOUND FOR PROPERTY
TAXES AND INSURANCE. NOT INCLUDED IN THE CASH ACCOUNT FIGURE IS THE AMOUNT STILL
BEING HELD BY THE LENDER TO ASSURE COMPLETION OF THE ROOF REPLACEMENT AND CEMENT
REPAIRS. THE AMOUNT BEING HELD BACK IS $501,300. THIS MEANS THAT WHEN THE 15
REMAINING ROOFS OF THE TOTAL 40 ARE COMPLETED AND THE CEMENT WORK IS FINISHED,
THE LENDER WILL RETURN TO US APPROXIMATELY $350,000. AS DESCRIBED PREVIOUSLY,
THE ROOF COMPLETION PROGRAM IS A SLOW AND ARDUOUS PROCESS AND, WE BELIEVE, MORE
COMPLEX AND TIME CONSUMING THAN THE ROOFING CONTRACTOR ANTICIPATED.
10
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
MEANWHILE, WITH THE PAINTING AND PAVING COMPLETE, THE PROPERTY LOOKS TERRIFIC
AND SUSTAINED A VACANCY FACTOR OF ONLY 4.97% DURING SEPTEMBER 2000. SHOULD
PRESENT TRENDS CONTINUE, AND WE HAVE NO REASON TO EXPECT THEY WON'T, WE
ANTICIPATE EVEN HIGHER OCCUPANCY RATES AND INCREASED RENTS IN THE NEAR FUTURE.
LIQUIDITY AND CAPITAL RESOURCES
WHILE ANTICIPATING THE COMPLETION OF THE 15 REMAINING ROOFS AND THE $501,300
CASH HELD BY THE LENDER TO BE RELEASE IN THE NEAR FUTURE, VENETIAN PARK
ASSOCIATES LTD., HAS DECLARED A CASH DISTRIBUTION IN THE AMOUNT OF $18 PER UNIT.
TOTAL CASH DISTRIBUTIONS OF $108,738 ARE SCHEDULED TO BE RELEASE IN OCTOBER
2000. THIS BRINGS DISTRIBUTIONS IN 2000 TO A TOTAL OF $143,474.
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.
11
<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
12
<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 23, 2000 BY /s/ NORMAN JACOBSON
---------------------------------
NORMAN JACOBSON
GENERAL PARTNER
13
