UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
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FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarter ended June 30, 1996 Commission File Number 2-93980
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FJS PROPERTIES FUND I, L.P.
(Exact name of registrant as specified in its charter)
Delaware 13-3252067
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
264 Route 537 East
Colts Neck, New Jersey 07722
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (908) 542-9209
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 of 15(d) of the Securities and 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
Authorized 100,000 limited partnership interests of which 16,788 have been sold
as of August 9, 1996.
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FJS PROPERTIES FUND I, L.P.
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INDEX
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Part I: FINANCIAL INFORMATION
Item 1: Financial Statements
Balance Sheets as of June 30, 1996 [Unaudited]
and December 31, 1995 .................................... 1
Statements of Operations for the three months and six months
ended June 30, 1996 and 1995 [Unaudited].................. 2
Statement of Partners' Capital for the six months
ended June 30, 1996 [Unaudited]........................... 3
Statements of Cash Flows for the six months ended
June 30, 1996 and 1995 [Unaudited]........................ 4
Notes to Financial Statements [Unaudited]................. 5
Item 2: Management's Discussion and Analysis of Financial Condition
and Results of Operations................................. 6
Part II: OTHER INFORMATION
Item 6: Exhibits and Reports on Form 8-K.......................... 7
Signature Page.................................................... 8
. . . . . . . .
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PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
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FJS PROPERTIES FUND I, L.P.
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BALANCE SHEETS
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<TABLE>
June 30, December 31,
1 9 9 6 1 9 9 5
[Unaudited]
Assets:
<S> <C> <C>
Current Assets:
Cash and Cash Equivalents $ 503,698 $ 542,337
Cash - Escrow 335,538 188,468
Cash - Security Deposits 134,817 122,367
Other Current Assets 70,792 101,040
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Total Current Assets 1,044,845 954,212
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Property Investment:
Land 2,296,804 2,296,804
Buildings 6,569,125 6,569,125
Furniture, Fixtures and Building Improvements 1,730,940 1,727,549
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Totals - At Cost 10,596,869 10,593,478
Less: Accumulated Depreciation (4,136,572) (4,011,823)
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Property Investment - Net 6,460,297 6,581,655
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Other Assets 208,801 221,005
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Total Assets $7,713,943 $ 7,756,872
========== ===========
Liabilities and Partners' Capital:
Current Liabilities:
Accounts Payable $ 64,338 $ 63,561
Accounts Payable - Related Party 6,254 25,549
Accrued Interest 37,855 38,947
Other Accrued Expenses 113,473 8,409
Tenant Security Deposits 134,817 122,367
Mortgage Payable - Current Portion 60,906 58,019
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Total Current Liabilities 417,643 316,852
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Long-Term Liability:
Mortgage Payable - Non-Current Portion 4,825,776 4,856,967
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Partners' Capital:
General Partner (1,211,153) (1,210,028)
Limited Partners 3,681,677 3,793,081
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Total Partners' Capital 2,470,524 2,583,053
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Total Liabilities and Partners' Capital $7,713,943 $ 7,756,872
========== ===========
See Accompanying Notes to Financial Statements.
</TABLE>
1
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<TABLE>
FJS PROPERTIES FUND I, L.P.
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STATEMENTS OF OPERATIONS
[UNAUDITED]
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Three months ended Six months ended
June 30, June 30,
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1 9 9 6 1 9 9 5 1 9 9 6 1 9 9 5
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<S> <C> <C> <C> <C>
Rental Income $ 465,432 $ 461,297 $ 933,312 $ 924,292
Cost of Rental Income 166,008 161,355 324,689 305,103
---------- ---------- ----------- -----------
Gross Profit 299,424 299,942 608,623 619,189
---------- ---------- ----------- -----------
Expenses:
Selling, General and Administrative
Expenses 172,204 142,589 326,145 286,938
Depreciation and Amortization 68,646 68,439 136,953 136,810
---------- ---------- ----------- -----------
Total Expenses 240,850 211,028 463,098 423,748
---------- ---------- ----------- -----------
Operating Income 58,574 88,914 145,525 195,441
---------- ---------- ----------- -----------
Other [Income] and Expenses:
Interest Income (5,840) (7,154) (11,331) (12,571)
Interest Expense 117,926 119,247 237,504 240,129
---------- ---------- ----------- -----------
Other Expenses - Net 112,086 112,093 226,173 227,558
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Net [Loss] $ (53,512) $ (23,179) $ (80,648)$ (32,117)
========== ========== =========== ===========
[Loss] Per Limited Partnership Un$t (3.16) $ (1.37) $ (4.76)$ (1.89)
= ======== ========== =========== ===========
Distributions Per Limited Partnership
Unit $ 1.54 $ 2.65 $ 1.88 $ 2.88
========== ========== =========== ===========
Weighted Average Number of Limited
Partnership Units Outstanding 16,788 16,788 16,788 16,788
========== ========== =========== ===========
See Accompanying Notes to Financial Statements.
</TABLE>
2
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<TABLE>
FJS PROPERTIES FUND I, L.P.
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STATEMENT OF PARTNERS' CAPITAL
[UNAUDITED]
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Total
General Limited Partners'
Partner Partners Capital
<S> <C> <C> <C>
Partners' Capital - December 31, 1995 $(1,210,028) $3,793,081 $ 2,583,053
Net [Loss] for the six months ended
June 30, 1996 (806) (79,842) (80,648)
Cash Distributions to Partners (319) (31,562) (31,881)
----------- ---------- -----------
Partners' Capital - June 30, 1996 $(1,211,153) $3,681,677 $ 2,470,524
=========== ========== ===========
See Accompanying Notes to Financial Statements.
</TABLE>
3
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<TABLE>
FJS PROPERTIES FUND I, L.P.
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STATEMENTS OF CASH FLOWS
[UNAUDITED]
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Six months ended
June 30,
1 9 9 6 1 9 9 5
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<S> <C> <C>
Operating Activities:
Net [Loss] $ (80,648) $ (32,117)
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Adjustments to Reconcile Net [Loss] to Net Cash
Provided by Operating Activities:
Depreciation 124,749 124,606
Amortization 12,204 12,204
Changes in Assets and Liabilities:
[Increase] Decrease in:
Escrow (147,069) (189,195)
Security Deposits (12,450) 2,136
Other Current Assets 30,247 61,463
Increase [Decrease] in:
Accounts Payable 777 (20,181)
Accrued Interest (1,092) (646)
Other Accrued Expenses 105,064 104,968
Accounts Payable - Related Party (19,295) (11,318)
Tenant Security Deposits 12,450 (2,136)
Deferred Income -- (400)
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Total Adjustments 105,585 81,501
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Net Cash - Operating Activities 24,937 49,384
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Investing Activities:
Capital Expenditures (3,391) (2,687)
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Financing Activities:
Principal Payments on Mortgages (28,304) (25,687)
Distributions to Partners (31,881) (48,838)
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Net Cash - Financing Activities (60,185) (74,525)
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Net [Decrease] in Cash and Cash Equivalents (38,639) (27,828)
Cash and Cash Equivalents - Beginning of Periods 542,337 574,627
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Cash and Cash Equivalents - End of Periods $ 503,698 $ 546,799
========== ===========
</TABLE>
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest during the six months ended June 30, 1996 and 1995 was
$239,036 and $241,655, respectively.
For purposes of the statement of cash flows, the Company considers all highly
liquid debt instruments purchased with a maturity of three months or less to be
cash equivalents.
See Accompanying Notes to Financial Statements.
4
<PAGE>
FJS PROPERTIES FUND I, L.P.
NOTES TO FINANCIAL STATEMENTS
[UNAUDITED]
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[A] Significant Accounting Policies
Significant accounting policies of FJS Properties Fund I, L.P. are set forth in
the Partnership's Form 10-K for the year ended December 31, 1995, as filed with
the Securities and Exchange Commission.
[B] Basis of Reporting
The balance sheet as of June 30, 1996, the statements of operations for the
three and six months ended June 30, 1996 and 1995, the statement of partners'
capital for the six months ended June 30, 1996, and the statements of cash flows
for the six months ended June 30, 1996 and 1995 have been prepared by the
Partnership without audit. The accompanying unaudited financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and Rule
10-01 of Regulation S-X. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of the managing partner, such statements
include all adjustments [consisting only of normal recurring items] which are
considered necessary for a fair presentation of the financial position of the
Partnership at June 30, 1996, and the results of its operations for the three
and six months then ended, and its cash flows for the six months then ended. It
is suggested that these financial statements be read in conjunction with Form
S-11 filed with the Securities and Exchange Commission on April 25, 1985 and
with the financial statements and notes contained in the Partnership's Form 10-K
for the year ended December 31, 1995.
Certain reclassifications may have been made to the 1995 financial statements to
conform to classifications used in 1996.
5
<PAGE>
Item 2:
FJS PROPERTIES FUND I, L.P.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
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Liquidity and Capital Resources
As of the present date, the Partnership owns and operates one Property, the
Pavilion Apartments, and does not intend to acquire any other property.
Cash flow from Pavilion should be sufficient to permit the Partnership to make
the constant monthly payments due prior to maturity on the first mortgage and to
meet its monthly operating expenses. However, should there be a significant
decrease in Pavilion's occupancy or rental rates, there can be no assurance that
the Partnership would be able to obtain sufficient funds to make such payments.
Operations
The Partnership has operated the Pavilion Apartments, located in West Palm
Beach, Florida since January 1985.
The project operated with occupancies of around 90% during the second quarter of
1996. As of August 6, 1996, there were 35 vacant apartments with 5 scheduled
move-ins for August. 30 apartments were available for rent. Physical occupancy
therefore stands at 88.8%, with 90.4% of the apartments rented.
Rental income for the comparable three and six month periods ended June 30, 1995
and 1996, showed increases for both the three month period from $461,297 to
$465,432 and the six month period from $924,292 to $933,312 of the prior year.
The increases were primarily attributable to the increased rental rates enjoyed
by the Pavilion Apartments as well as decreases in the amount of rental
allowance granted to tenants. These were offset somewhat by an increase in the
vacancies experienced at the Pavilion. Cost of Rental Income, consisting mainly
of real estate taxes, repairs and maintenance and utilities increased slightly
from $161,355 to $166,008 and from $305,103 to $324,689 for the comparable three
and six month periods of 1995 and 1996 respectively. The increase was
principally from increased Replacements and Repairs and Maintenance which were
completed during this period at the Project. This included additional expenses
for repainting the Project, resurfacing of the swimming pool and repairs to
various awnings around the property.
Selling, General and Administrative Expenses increased substantially to $326,145
from $286,938 for the comparable six month periods, and from $142,589 to
$172,204 for the comparable three month period of the prior year. The increases
resulted principally from increased payroll costs associated with the labor
associated with painting of the Pavilion Apartments and related work. In
addition increased management fees to the unaffiliated property manager for
supervision of this additional work was reflected in these periods. Increased
advertising expenses were also incurred in an attempt to offset the increased
vacancies experienced at the property.
As a result of the increase in the Cost of Rental Income and Selling, General
and Administrative Expenses, Operating Income decreased for the three and six
month periods to $58,574 and $145,525 from $88,914 and $195,441 for the
comparable periods of 1995.
Inflation
As of the present date, inflation has not had a major impact on the operations
of the Partnership.
6
<PAGE>
PART II - OTHER INFORMATION
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Item 6. Exhibits and Reports on Form 8-K
[a] Exhibits as required by Item 601 of Regulation S-K:
None Required
[b] Reports on Form 8-K:
None filed during the quarter for which this report is submitted
7
<PAGE>
SIGNATURES
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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.
FJS PROPERTIES FUND I, L.P.
Date: August 9, 1996 By:________________________________
Andrew C. Alson
[President and Chief Financial Officer]
FJS Properties, Inc.
General Partner
8
<PAGE>
SIGNATURES
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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.
FJS PROPERTIES FUND I, L.P.
Date: August 9, 1996 By: /s/ Andrew C. Alson
-------------------
Andrew C. Alson
[President and Chief Financial Officer]
FJS Properties, Inc.
General Partner
8
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
this schedule contains summary information extracted from the consolidated
balance sheet and the consolidated statemens of operations and is qualified
in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> dec-31-1996
<PERIOD-END> jun-30-1996
<CASH> 503,698
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,044,845
<PP&E> 10,596,869
<DEPRECIATION> (4,136,572)
<TOTAL-ASSETS> 7,173,943
<CURRENT-LIABILITIES> 417,643
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,470,524
<TOTAL-LIABILITY-AND-EQUITY> 7,713,943
<SALES> 465,432
<TOTAL-REVENUES> 465,432
<CGS> 166,008
<TOTAL-COSTS> 240,850
<OTHER-EXPENSES> 5,840
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (117,926)
<INCOME-PRETAX> (53,512)
<INCOME-TAX> 0
<INCOME-CONTINUING> (53,512)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (53,512)
<EPS-PRIMARY> (3.16)
<EPS-DILUTED> (3.16)
</TABLE>
