U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM 10QSB
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[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934 [Fee Required]
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934 [No Fee Required]
FOR THE QUARTER ENDED SEPTEMBER 30, 1996
COMMISSION FILE NUMBER 2-93352
ENCO FLORIDA FUND, LTD.
(Exact name of registrant as specified in its charter)
FLORIDA 59-2427012
(State of Incorporation) (IRS Employer ID No.)
4104 WEST LINEBAUGH AVENUE
TAMPA, FLORIDA 33624
(Address of principal executive offices) (Zip Code)
(813) 961-8085
(Telephone Number)
----------------------------------------------------
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 [ ]
As of May 15, 1996, the aggregate market value of the partnership units held by
non-affiliates of The Registrant was $1,456,00. The number of partnership shares
outstanding as of November 7, 1996, was 1,456.
<PAGE>
ENCO FLORIDA FUND, LTD.
Table of Contents
PART I Financial Information Page No.
Item 1. Financial Statement
Balance Sheets 4
Statements of Income 5
Statement of Stockholders' Equity 6
State of Cash Flow 7
Notes to Financial Statements 8-10
Item 2. Managements's Discussions and Analysis 11
of Financial Condition and Results
of Operations
PART II Other Information 12
SIGNATURES 12
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<PAGE>
ENCO FLORIDA FUND, LTD.
FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
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<PAGE>
ENCO FLORIDA FUND, LTD.
(A LIMITED PARTNERSHIP)
BALANCE SHEETS
ASSETS
------
SEPTEMBER 30 DECEMBER 31
1996 1995
(UNAUDITED) (AUDITED)
----------- ---------
Current Assets
Cash $ 50,279 $ 29,615
Property, less accumulated
depreciation of $154,901
and $142,247 at December
31, 1995. 941,817 954,471
--------- ---------
$ 992,096 $ 984,086
========= =========
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
Liabilities $ 0 $ 0
Partners' Capital
General Partner
Capital contributions net of
offering costs 32,140 32,140
Cumulative net income 6,473 6,123
Cumulative cash distributions (15,478) (15,478)
--------- ---------
General Partner Capital 23,135 22,785
--------- ---------
Limited Partners
Capital contributions net of
offering costs 1,251,114 1,251,114
Cumulative net income 640,873 606,229
Cumulative cash distributions (923,026) (896,042)
--------- ---------
Limited Partner Capital 968,961 961,301
--------- ---------
Total Partners' Capital 992,096 984,086
--------- ---------
$ 992,096 $ 984,086
========= =========
See accompanying notes.
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<PAGE>
<TABLE>
<CAPTION>
ENCO FLORIDA FUND, LTD.
(A LIMITED PARTNERSHIP)
STATEMENTS OF INCOME
NINE MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1996 1995 1996 1995
-------------------- --------------------
<S> <C> <C> <C> <C>
Revenues
Rental income $62,367 $62,752 $20,789 $20,789
Other 0 0 0 0
------- ------- ------- -------
62,367 62,752 20,789 20,789
------- ------- ------- -------
Cost and Expenses
General and administrative 14,719 10,886 3,359 4,479
Depreciation 12,654 12,654 4,218 4,218
------- ------- ------- -------
27,373 23,540 7,577 8,697
------- ------- ------- -------
Net Income $34,994 $39,212 $13,212 $12,092
======= ======= ======= =======
Net income per limited
partnership unit $ 24 $ 27 $ 9 $ 8
======= ======= ======= =======
Cash distribution per limited
partnership unit $ 19 $ 35 $ 3 $ 12
======= ======= ======= =======
</TABLE>
Net income per limited partnership unit is based on 1,456 units of limited
partnership interests outstanding at September 30, 1996 and 1995.
See accompanying notes.
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<PAGE>
<TABLE>
<CAPTION>
ENCO FLORIDA FUND, LTD.
(A LIMITED PARTNERSHIP)
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
January 1, 1996 through September 30, 1996
GENERAL LIMITED TOTAL
PARTNER'S PARTNERS' PARTNERS'
CAPITAL CAPITAL CAPITAL
--------- --------- ---------
<S> <C> <C> <C>
Partners' capital, January 1, 1996 $22,785 $ 961,301 $ 984,086
Net income for nine months ended
September 30, 1996 350 34,644 34,994
Cash distributions to partners 0 (26,984) (26,984)
------- --------- ---------
Partners capital, September 30, 1996 $23,135 $ 968,961 $ 992,096
======= ========= =========
</TABLE>
See accompanying notes.
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<PAGE>
<TABLE>
<CAPTION>
ENCO FLORIDA FUND, LTD.
(A LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1996 1995 1996 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
OPERATING ACTIVITIES
Net income $ 34,994 $ 39,212 $ 13,212 $ 12,092
Adjustments to reconcile net income
to net cash provided by operating
activities
Decerease in security deposits 0 (350) 0
Depreciation 12,654 12,654 4,218 4,218
-------- -------- -------- --------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 47,648 51,516 17,430 16,310
-------- -------- -------- --------
CASH FLOWS FROM INVESTING
ACTIVITIES 0 0 0 0
-------- -------- -------- --------
CASH FLOWS FROM FINANCING
ACTIVITIES
Distributions to partners (26,984) (50,952) (5,000) (16,984)
-------- -------- -------- --------
NET INCREASE (DECREASE) IN
CASH 20,664 564 12,430 (674)
CASH AT BEGINNING OF PERIOD 29,615 26,735 37,849 27,973
-------- -------- -------- --------
CASH AT END OF PERIOD $ 50,279 $ 27,299 $ 50,279 $ 27,299
======== ======== ======== ========
</TABLE>
See accompanying notes.
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<PAGE>
ENCO FLORIDA FUND, LTD.
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
1. NATURE OF BUSINESS
Enco Florida Fund, Ltd. (the "Partnership"), a Florida limited partnership, was
formed on July 23, 1984, to invest in income-producing real estate in Florida.
The Partnership Agreement provides that the Partnership will be dissolved no
later than December 31, 2020. The sole general partner is Executive National
Development Corporation, a Florida corporation. Activities through September 30,
1996, have been the sales of limited partnership units, the purchase of four
parcels of real estate, and the sale of one of the parcels. The development
stage activities terminated upon completion of the offering for sale of limited
partnership units on October 28, 1987.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PROPERTY AND DEPRECIATION
Property is carried at cost. Depreciation on buildings is calculated using the
straight-line method over 31 1/2 years.
DISTRIBUTIONS
Profits and losses are allocated initially 99% to the Limited Partners, and 1%
to the General Partner. Upon the return of a Limited Partners' initial capital
contribution, thereafter, the General Partner will be entitled to 10% of profits
and losses. Once Limited Partners have received their capital contributions plus
a 21% cumulative, not compounded, average annual after-tax return (assumed 35%
rate), thereafter, the General Partner will be entitled to 50% of the profits
and losses.
Cash distributions are made quarterly from available cash after payment of
expense at the discretion of the General Partner. The General Partner is
entitled to receive 10% of distributions, and the limited partners receive 90%.
Allocation to limited partners is based on the number of units held.
INCOME TAXES
No provision has been made for income taxes since the Partnership is not a
taxable entity, and income taxes are the responsibility of the individual
partners.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
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<PAGE>
ENCO FLORIDA FUND, LTD.
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
3. PROPERTY UNDER OPERATING LEASES
Property under operating leases is as follows at September 30, 1996:
a. Two properties consisting of an undeveloped parcel of land and an office
condominium unit in Lakeland, Florida. Both properties are being
marketed for sale or lease.
b. One property is leased to a third party under a lease which is accounted
for as an operating lease. This property consists of land and building
leased to a fast-food restaurant. This third-party lease was assigned to
the Partnership by the sellers in connection with the purchase of the
property. Minimum future rentals on non-cancellable operating lease as
of September 30, 1996, is as follows:
Year Ending December 31:
1996 20,789
1997 20,789
--------
Total minimum future rentals $ 41,578
========
Under terms of the lease agreement for the commercial property located
in Bradenton Florida, the Partnership is entitled, in addition to
minimum annual rentals of $83,156, to contingent rental income equal
to 5% of the lessee's gross annual sales in excess of $1,385,933 payable
annually each April 30. On December 11, 1991, the first option to
extend the lease for five years was exercised. The lease is due to
expire on March 31, 1997.
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<PAGE>
ENCO FLORIDA FUND, LTD.
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
4. RELATED PARTY TRANSACTIONS
The Partnership is to pay a management fee to the General Partner equal to 1% of
Gross Operating Income From Operations, as defined in the Partnership Agreement.
The Partnership will pay a property management fee to the General Partner for
property management services rendered with respect to properties owned by the
Partnership. This fee may not exceed 5% of the gross revenues from residential
properties under management and 6% of the gross receipts from industrial or
commercial properties under management, as defined in the Partnership Agreement.
The amount actually paid to the General Partner has been less than required and
the General Partner has waived the additional compensation due it.
5. PARTNERS' CAPITAL
The Partnership offered for sale 5,000 limited partnership units for $1,000 per
unit. The offering concluded on October 28, 1987, two years after the effective
date of the registration. A total of 1,456 units ($1,456,000) were sold during
the offering.
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<PAGE>
ENCO FLORIDA FUND, LTD.
(A Limited Partnership)
PART I - FINANCIAL INFORMATION
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.
Rental income and costs remained consistent for the nine month period ended
September 30, 1996 and 1995. The partnership leases land and building in
Bradenton, Florida to a Hardee's Food System, Inc. This lease expires in March,
1997 and the tenant has notified the Company of its intentions regarding renewal
of the lease. Accounts payable did not change.
LIQUIDITY
Cash on hand available for general and administrative expenses and partner
distributions was $50,279 at September 30, 1996. Due to the possibility that the
tenant in Bradenton will not renew their lease, management feels that while
there is sufficient cash available to meet all current general and
administrative expenses, the partner distributions must be reduced until a new
tenant is identified or the existing tenant renews the lease.
CAPITAL RESOURCES
The Partnership has an undeveloped parcel of land and an office condominium unit
which are currently being marketed for sale or trade. Funds from any proposed
sales could be used to increase cash reserves and cash distributions.
RESULTS OF OPERATIONS
The majority of the funds are invested in an undeveloped parcel of land, an
office condominium, and commercial property leased to Hardee's Food Systems,
Inc. A repositioning of the undeveloped parcel of land and the office
condominium into a sale or trade for another income-producing property could
further enhance the potential revenue from the properties.
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<PAGE>
ENCO FLORIDA FUND, LTD.
(A Limited Partnership)
PART II - OTHER INFORMATION
There is no additional information which needs to be reported from this section.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ENCO FLORIDA FUND, LTD.
____________________________ _________________________________
Date Timothy M. Hohl, President
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JUL-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 50,279
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 50,279
<PP&E> 1,096,718
<DEPRECIATION> 154,901
<TOTAL-ASSETS> 992,096
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 992,096
<TOTAL-LIABILITY-AND-EQUITY> 992,096
<SALES> 62,367
<TOTAL-REVENUES> 62,367
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 27,373
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 34,994
<INCOME-TAX> 0
<INCOME-CONTINUING> 34,994
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 34,994
<EPS-PRIMARY> 24.00
<EPS-DILUTED> 24.00
</TABLE>
