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 OF 1934 [NO FEE REQUIRED]
For the Quarter Ended June 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)
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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 [ ]
As 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 August 14, 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
Statement of Cash Flow 7
Notes of Financial Statements 8-10
Item 2. Management's Discussion 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
JUNE 30, 1996
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<PAGE>
ENCO FLORIDA FUND, LTD.
(A Limited Partnership)
BALANCE SHEETS
(Unaudited)
ASSETS
JUNE 30, DECEMBER 31,
1996 1995
--------- ------------
Current Assets
Cash and cash equivalents $ 37,849 $ 29,615
Property, less accumulated depreciation of
$150,683 in 1996 and $142,247 in 1995 946,036 954,471
--------- ------------
$ 983,885 $ 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 6,341 6,123
Cumulative cash distributions (15,478) (15,478)
--------- ------------
General Partner Capital 23,003 22,785
--------- ------------
Limited Partners
Capital contributions net of
offering costs 1,251,114 1,251,114
Cumulative net income 627,792 606,229
Cumulative cash distributions (918,024) (896,042)
--------- ------------
Limited Partners' Capital 960,882 961,301
--------- ------------
Total Partners' Capital 983,885 984,086
--------- ------------
$ 983,885 $ 984,086
========= ============
See notes to financial statements.
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<PAGE>
ENCO FLORIDA FUND, LTD.
(A Limited Partnership)
STATEMENTS OF INCOME
SIX MONTHS ENDED THREE MONTHS ENDED
JUNE 30, JUNE 30,
1996 1995 1996 1995
-------- ------- -------- --------
Revenues
Rental income $ 41,578 $ 41,963 $ 20,789 $ 20,789
Interest income -0- -0- -0- -0-
-------- -------- -------- --------
41,578 41,963 20,789 20,789
-------- -------- -------- --------
Cost and expenses
General and Administrative 11,361 6,402 8,549 5,951
Depreciation 8,436 8,436 4,218 4,218
Amortization -0- -0- -0- -0-
-------- -------- -------- --------
19,797 14,843 12,797 10,169
-------- -------- -------- --------
Net income $ 21,781 $ 27,120 $ 8,022 $ 10,620
======== ========= ======== ========
Net income per limited
partnership unit $ 15 $ 19 $ 6 $ 7
======== ========= ======== ========
Cash distribution per limited
partnership unit $ 23 $ 23 $ 12 $ 12
======== ========= ======== ========
Net income per limited partnership unit is based upon 1,456 units of limited
partnership interests outstanding at June 30, 1996 and 1995, respectively.
See accompanying notes.
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<PAGE>
ENCO FLORIDA FUND, LTD.
(A Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
January 1, 1996 through June 30, 1996
GENERAL LIMITED TOTAL
PARTNER'S PARTNERS' PARTNERS'
CAPITAL CAPITAL CAPITAL
--------- --------- ---------
Partners' capital,
January 1, 1996 $ 22,785 $ 961,301 $ 984,086
Net income for the six months
ended June 30, 1995 218 21,563 21,781
Cash distribution to partners -0- (21,982) (21,982)
-------- --------- ----------
Partner's capital,
June 30, 1996 $ 23,003 $ 960,882 $ 983,885
======== ========= ==========
See accompanying notes.
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<PAGE>
<TABLE>
<CAPTION>
ENCO FLORIDA FUND, LTD.
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED THREE MONTHS ENDED
JUNE 30, JUNE 30,
1996 1995 1996 1995
--------- --------- --------- ----------
<S> <C> <C> <C> <C>
OPERATING ACTIVITIES
Net income $ 21,781 $ 27,120 $ 15,759 $ 10,621
Adjustments to reconcile net
income to net cash provided
by operating activities
Decrease in security deposits (350)
Depreciation & amortization 8,436 8,436 4,218 4,218
--------- --------- --------- ---------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 30,217 35,206 17,977 14,839
---------- --------- --------- ---------
CASH FLOWS FROM
INVESTING ACTIVITIES
None
CASH FLOWS FROM
FINANCING ACTIVITIES
Distributions to partners (21,984) (33,968) (5,000) (16,984)
---------- --------- --------- ---------
NET INCREASE (DECREASE)
IN CASH AND CASH
EQUIVALENTS 8,233 1,238 (12,977) (2,145)
CASH AND CASH
EQUIVALENTS, BEGINNING
OF PERIOD 29,615 26,735 24,872 30,118
----------- --------- --------- ---------
CASH AND CASH
EQUIVALENTS, END
OF PERIOD
$ 37,848 $ 27,973 $ 37,849 $ 27,973
========= ========= ========= =========
</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 June 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 June 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 this non-cancellable operating lease as of March
31, 1996, is as follows:
Year Ending December 31:
1996 62,367
1997 20,789
--------
Total minimum future rentals $ 83,156
========
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 six month period ended June
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 does not intend to renew the lease. Accounts payable did not change.
LIQUIDITY
Cash on hand available for general and administrative expenses and partner
distributions was $37,848 at June 30, 1996. Due to the notification 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.
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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> APR-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 37,849
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 37,849
<PP&E> 1,096,719
<DEPRECIATION> 150,683
<TOTAL-ASSETS> 983,885
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 983,885
<TOTAL-LIABILITY-AND-EQUITY> 983,885
<SALES> 41,578
<TOTAL-REVENUES> 41,578
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 19,797
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 21,781
<INCOME-TAX> 0
<INCOME-CONTINUING> 21,781
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 21,781
<EPS-PRIMARY> 15.00
<EPS-DILUTED> 15.00
</TABLE>
