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, 1998 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, 1998.
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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, 1998 [Unaudited]
and December 31, 1997 .................................... 1
Statements of Operations for the three months ended
March 31, 1998 and 1997 [Unaudited]....................... 2
Statement of Partners' Capital for the three months
ended March 31, 1998 [Unaudited].......................... 3
Statements of Cash Flows for the three months ended
March 31, 1998 and 1997 [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
. . . . . . . .
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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 8 1 9 9 7
[Unaudited]
Assets:
Current Assets:
Cash and Cash Equivalents $ 559,571 $ 535,546
Cash - Escrow 173,279 97,661
Cash - Security Deposits 125,528 121,878
Other Current Assets 18,044 35,971
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Total Current Assets 876,422 791,056
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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 1,835,525 1,818,365
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Totals - At Cost 10,701,454 10,684,294
Less: Accumulated Depreciation (4,571,187) (4,507,327)
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Property Investment - Net 6,130,267 6,176,967
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Other Assets 287,131 290,795
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Total Assets $7,293,820 $ 7,258,818
========== ===========
Liabilities and Partners' Capital:
Current Liabilities:
Accounts Payable $ 91,804 $ 97,300
Accrued Interest 38,273 38,944
Other Accrued Expenses 61,218 6,423
Accounts Payable - Related Party 22,023 26,138
Tenant Security Deposits 125,527 121,878
Mortgage Payable - Current Portion 72,185 70,455
Deferred Income - Current Portion 7,142 7,142
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Total Current Liabilities 418,172 368,280
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Long-Term Liabilities:
Mortgage Payable - Non-Current Portion 4,703,868 4,722,578
Deferred Income - Non-Current Portion 30,356 32,141
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Total Long-Term Liabilities 4,734,224 4,754,719
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Partners' Capital:
General Partner (1,214,445) (1,214,501)
Limited Partners 3,355,869 3,350,320
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Total Partners' Capital 2,141,424 2,135,819
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Total Liabilities and Partners' Capital $7,293,820 $ 7,258,818
========== ===========
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 8 1 9 9 7
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Rental Income $ 526,564 $ 496,655
Cost of Rental Income 165,313 188,749
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Gross Profit 361,251 307,906
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Expenses:
Selling, General and Administrative Expenses 173,203 157,348
Depreciation and Amortization 69,963 63,718
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Total Expenses 243,166 221,066
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Operating Income 118,085 86,840
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Other [Income] and Expenses:
Interest Income (6,473) (6,002)
Interest Expense 116,053 118,141
Other Expense 2,900 --
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Other Expenses - Net 112,480 112,139
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Net Income [Loss] $ 5,605 $ (25,299)
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Income [Loss] Per Limited Partnership Unit $ .33 $ (1.49)
========== ===========
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, 1997 $(1,214,501) $3,350,320 $ 2,135,819
Net Income for the three months
ended March 31, 1998 56 5,549 5,605
----------- ---------- -----------
Partners' Capital - March 31, 1998
[Unaudited] $(1,214,445) $3,355,869 $ 2,141,424
=========== ========== ===========
See Accompanying Notes to These Financial Statements.
3
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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 8 1 9 9 7
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Operating Activities:
Net Income [Loss] $ 5,605 $ (25,299)
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Adjustments to Reconcile Net Income [Loss]
to Net Cash Provided by Operating Activities:
Depreciation 63,861 57,616
Amortization 6,102 6,102
Changes in Assets and Liabilities:
[Increase] Decrease in:
Escrow (75,618) 10,226
Security Deposits (3,650) (10,880)
Other Current Assets 17,927 (89,211)
Other Assets (2,438) --
Increase [Decrease] in:
Accounts Payable (5,504) (9,456)
Accrued Interest (670) (123)
Other Accrued Expenses 54,796 51,979
Accounts Payable - Related Party (4,114) 3,137
Tenant Security Deposits 3,650 10,880
Deferred Income (1,785) (1,785)
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Total Adjustments 52,557 28,485
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Net Cash - Operating Activities 58,162 3,186
Investing Activities:
Capital Expenditures (17,160) --
Financing Activities:
Principal Payments on Mortgages (16,977) (15,407)
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Net Increase [Decrease] in Cash and Cash Equivalents 24,025 (12,221)
Cash and Cash Equivalents - Beginning of Periods 535,546 493,597
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Cash and Cash Equivalents - End of Periods $ 559,571 $ 481,376
========== ===========
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest during the three months ended March 31, 1998 and 1997
was $116,722 and $118,264, 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, 1997, as filed with
the Securities and Exchange Commission.
[B] Basis of Reporting
The balance sheet as of March 31, 1998, the statements of operations for the
three months ended March 31, 1998 and 1997, the statement of partners' capital
for the three months ended March 31, 1998, and the statements of cash flows for
the three months ended March 31, 1998 and 1997 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, 1998, 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, 1997.
. . . . . . . . . . .
5
<PAGE>
Item 2. 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 low-90% range for the first quarter
of 1998. Physical occupancy stands at 92.3% as of May 11, 1998, with 24 vacant
apartments of which 8 have been rented with tenant move-in scheduled during May.
Two other tenants are presently being evicted. Rental income for the three month
period ended March 31, 1998, increased to $526,564 as compared to $496,655 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 to
reductions in both vacancies at the project, as well as rental allowances given
to tenants. Cost of Rental Income, consisting mainly of real estate taxes,
repairs and maintenance and utilities decreased from $188,749 to $165,313 for
the comparable three month periods of 1997 and 1998 respectively. The decrease
was principally from decreased repairs, maintenance and replacements at the
project which to a great extent reflects the past expenses for these items.
Increases were experienced in the cost of water and sewer service to the
project, and in addition a landscaping service has been engaged to maintain the
plantings around the property.
Selling, General and Administrative Expenses increased to $173,203 as compared
to $157,348 for the comparable three month period of the prior year. This
reflects increases in court costs which to some extent is a result of the higher
occupancies at the property, and increased Professional Fees which includes
approximately $5,600 for fees related to real estate tax appeals for the
Pavilion. Payroll expenses showed a decrease in part because of the reduced
staffing necessary with the outsourcing of the landscape maintenance at the
property.
The Other Expense item of $2,900 under Other Income and Expenses for 1998,
reflects the net cost to the Partnership of fees and expenses in connection with
the tender offer completed by an unaffiliated third party in December 1997.
Transfer fees of $10,300 were received and administrative and legal fees of
$13,200 were incurred in connection with the review of the documents and
preparation of legal filings required to be made by the Partnership.
INFLATION
As of the present date, inflation has not had a major impact on the operations
of the Partnership.
6
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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
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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, 1998 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-31-1998
<PERIOD-END> Mar-31-1998
<CASH> 559,571
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 876,422
<PP&E> 10,701,454
<DEPRECIATION> 4,571,187
<TOTAL-ASSETS> 7,293,820
<CURRENT-LIABILITIES> 418,172
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,141,424
<TOTAL-LIABILITY-AND-EQUITY> 7,293,820
<SALES> 0
<TOTAL-REVENUES> 526,564
<CGS> 165,313
<TOTAL-COSTS> 243,166
<OTHER-EXPENSES> (3,573)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 116,053
<INCOME-PRETAX> 5,605
<INCOME-TAX> 0
<INCOME-CONTINUING> 5,605
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,605
<EPS-PRIMARY> 0.33
<EPS-DILUTED> 0.33
</TABLE>
