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 March 31, 1997 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 May 8, 1997.
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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 March 31, 1997 [Unaudited]
and December 31, 1996 .................................... 1
Statements of Operations for the three months ended
March 31, 1997 and 1996 [Unaudited]....................... 2
Statement of Partners' Capital for the three months
ended March 31, 1997 [Unaudited].......................... 3
Statements of Cash Flows for the three months ended
March 31, 1997 and 1996 [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 ........................................................ 8
. . . . . . . .
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1: Financial Statements
FJS PROPERTIES FUND I, L.P.
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BALANCE SHEETS
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March 31, December 31,
1 9 9 7 1 9 9 6
[Unaudited]
Assets:
Current Assets:
Cash and Cash Equivalents $ 481,376 $ 493,597
Cash - Escrow 171,254 182,875
Cash - Security Deposits 132,047 121,167
Other Current Assets 90,641 1,430
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Total Current Assets 875,318 799,069
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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 1,737,884 1,737,884
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Totals - At Cost 10,603,813 10,603,813
Less: Accumulated Depreciation (4,320,326) (4,262,710)
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Property Investment - Net 6,283,487 6,341,103
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Other Assets 304,075 308,781
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Total Assets $7,462,880 $ 7,448,953
========== ===========
Liabilities and Partners' Capital:
Current Liabilities:
Accounts Payable $ 70,389 $ 79,843
Accrued Interest 38,799 38,922
Other Accrued Expenses 59,204 7,225
Accounts Payable - Related Party 21,361 18,224
Tenant Security Deposits 132,047 121,167
Mortgage Payable - Current Portion 65,506 63,935
Deferred Income - Current Portion 7,142 7,142
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Total Current Liabilities 394,448 336,458
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Long-Term Liabilities:
Mortgage Payable - Non-Current Portion 4,776,055 4,793,033
Deferred Income - Non-Current Portion 37,500 39,286
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Total Long-Term Liabilities 4,813,555 4,832,319
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Partners' Capital:
General Partner (1,213,310) (1,213,057)
Limited Partners 3,468,187 3,493,233
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Total Partners' Capital 2,254,877 2,280,176
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Total Liabilities and Partners' Capital $7,462,880 $ 7,448,953
========== ===========
See Accompanying Notes to These Financial Statements.
1
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FJS PROPERTIES FUND I, L.P.
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STATEMENTS OF OPERATIONS
[UNAUDITED]
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Three months ended
March 31,
1 9 9 7 1 9 9 6
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Rental Income $ 496,655 $ 467,880
Cost of Rental Income 188,749 158,682
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Gross Profit 307,906 309,198
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Expenses:
Selling, General and Administrative Expenses 157,348 153,940
Depreciation and Amortization 63,718 68,307
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Total Expenses 221,066 222,247
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Operating Income 86,840 86,951
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Other [Income] and Expenses:
Interest Income (6,002) (5,491)
Interest Expense 118,141 119,578
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Other Expenses - Net 112,139 114,087
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Net Loss $ (25,299) $ (27,136)
========== ===========
Loss Per Limited Partnership Unit $ (1.49) $ (1.62)
========== ===========
Distributions Per Limited Partnership Unit $ -- $ .34
========== ===========
Weighted Average Number of Limited
Partnership Units Outstanding 16,788 16,788
========== ===========
See Accompanying Notes to These Financial Statements.
2
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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
Partners' Capital - December 31, 1996 $(1,213,057) $3,493,233 $ 2,280,176
Net Loss for the three months
ended March 31, 1997 (253) (25,046) (25,299)
----------- ---------- -----------
Partners' Capital - March 31, 1997
[Unaudited] $(1,213,310) $3,468,187 $ 2,254,877
=========== ========== ===========
See Accompanying Notes to These Financial Statements.
3
<PAGE>
FJS PROPERTIES FUND I, L.P.
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STATEMENTS OF CASH FLOWS
[UNAUDITED]
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Three months ended
March 31,
1 9 9 7 1 9 9 6
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Operating Activities:
Net Loss $ (25,299) $ (27,136)
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Adjustments to Reconcile Net Loss to Net Cash
Provided by Operating Activities:
Depreciation 57,616 62,205
Amortization 6,102 6,102
Changes in Assets and Liabilities:
[Increase] Decrease in:
Escrow 10,226 (60,307)
Security Deposits (10,880) (4,780)
Other Current Assets (89,211) (345)
Increase [Decrease] in:
Accounts Payable (9,456) 5,018
Accrued Interest (123) 326
Other Accrued Expenses 51,979 51,320
Accounts Payable - Related Party 3,137 (8,698)
Tenant Security Deposits 10,880 4,780
Deferred Income (1,785) --
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Total Adjustments 28,485 55,621
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Net Cash - Operating Activities 3,186 28,485
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Financing Activities:
Principal Payments on Mortgages (15,407) (13,980)
Cash Distributions to Partners -- (5,766)
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Net Cash - Financing Activities (15,407) (19,746)
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Net [Decrease] Increase in Cash and Cash Equivalents (12,221) 8,739
Cash and Cash Equivalents - Beginning of Periods 493,597 542,337
---------- -----------
Cash and Cash Equivalents - End of Periods $ 481,376 $ 551,076
========== ===========
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest during the three months ended March 31, 1997 and 1996
was $118,264 and $119,690, 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 These 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, 1996, as filed with
the Securities and Exchange Commission.
[B] Basis of Reporting
The balance sheet as of March 31, 1997, the statements of operations for the
three months ended March 31, 1997 and 1996, the statement of partners' capital
for the three months ended March 31, 1997, and the statements of cash flows for
the three months ended March 31, 1997 and 1996 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 March 31, 1997, and the results of its operations and cash flows
for the three 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, 1996.
Certain reclassifications may have been made to the 1996 financial statements to
conform to classifications used in 1997.
. . . . . . . . . . . . . . . .
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 in the mid-90% range for the first quarter
of 1997. Physical occupancy stands at 94.5% as of May 9, 1997, with 17 vacant
apartments of which 14 have been rented with tenant move-in scheduled during
May. In addition, six tenants have given notice of intent to vacate and eviction
proceedings are in process against two additional tenants. Of these eight
additional apartments, two have been rented for future occupancy. Rental income
for the three month period ended March 31, 1997, increased to $496,655 as
compared to $467,880 for the comparable period of the prior year. This increase
was attributable to the increased rental rates enjoyed by the Pavilion
Apartments as well as a reduction in vacancies at the project. This was slightly
offset by a small increase in the rental allowances given to tenants. Cost of
Rental Income, consisting mainly of real estate taxes, repairs and maintenance
and utilities increased from $158,682 to $188,749 for the comparable three month
periods of 1996 and 1997 respectively. The increase was principally from
increased repairs, maintenance and replacements at the project which reflect the
continuing upgrade/rehabilitation program at the Pavilion. This project is
substantially completed, and the continuing replacement expense reflects the
replacements and updating of items such as stoves, hot water heaters and
bathroom lighting fixtures.
Selling, General and Administrative Expenses increased slightly to $157,348 as
compared to $153,940 for the comparable three month period of the prior year.
This reflects the accrual of $3,000 of quarterly administrative fees which first
quarter fees in 1996 were not reflected in the financial statements until the
second quarter. Except for the timing of this accrual, aggregate Selling,
General and Administrative Expenses were substantially the same as were incurred
in 1996. While payroll expenses and real estate commissions showed increases,
the latter including commissions paid to unaffiliated tenant referral services
not previously utilized in prior years, court costs and insurance premiums
showed reductions which offset the increases.
The increase in Rental Income offset by the increases in the Cost of Rental
Income and Selling, General and Administrative Expenses resulted in Operating
Income's being substantially the same for the three month periods of 1996 and
1997, at $86,951 and $86,840 respectively.
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>
SIGNATURE
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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: May 12, 1997 By: /s/ Andrew C. Alson
--------------------
Andrew C. Alson
(President and Chief Financial Officer)
FJS Properties, Inc.
General Partner
8
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated balance sheet and the consolidated statement 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-31-1997
<PERIOD-END> mar-31-1997
<CASH> 784,677
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 875,318
<PP&E> 10,603,813
<DEPRECIATION> 4,320,326
<TOTAL-ASSETS> 7,462,880
<CURRENT-LIABILITIES> 394,448
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,254,877
<TOTAL-LIABILITY-AND-EQUITY> 7,462,880
<SALES> 496,655
<TOTAL-REVENUES> 496,655
<CGS> 188,749
<TOTAL-COSTS> 221,066
<OTHER-EXPENSES> (6,002)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 118,141
<INCOME-PRETAX> (25,299)
<INCOME-TAX> 0
<INCOME-CONTINUING> (25,299)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (25,299)
<EPS-PRIMARY> (1.49)
<EPS-DILUTED> (1.49)
</TABLE>
