UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended February 28, 1995
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from to
Commission file number: 0-15550
HUTTON/GSH AMERICAN STORAGE PROPERTIES, L.P.
(Exact name of registrant as specified in its charter)
Virginia 11-2741889
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3 World Financial Center, 29th Floor, New York, NY 10285
(Address of principal executive offices) (Zip Code)
(212) 526-3237
(Registrant's telephone number, including area code)
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
INDEX
Page No.
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets at February 28, 1995
and November 30, 1994 3
Consolidated Statement of Partners' Capital for the
three months ended February 28, 1995 3
Consolidated Statements of Operations for the three
months ended February 28, 1995 and 1994 4
Consolidated Statements of Cash Flows for the three
months ended February 28, 1995 and 1994 4
Notes to the Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6
PART II OTHER INFORMATION
Items 1-6 7
Signatures 8
Consolidated Balance Sheets
February 28, November 30,
Assets 1995 1994
Self-service storage facilities, at cost:
Land $ 3,756,319 $ 3,756,319
Buildings and improvements 16,005,525 16,005,525
19,761,844 19,761,844
Less- accumulated depreciation (5,517,327) (5,353,132)
14,244,517 14,408,712
Cash and cash equivalents 2,176,950 2,001,535
Other assets 134,465 146,233
Total Assets $ 16,555,932 $ 16,556,480
Liabilities and Partners' Capital
Liabilities:
Accounts payable and accrued expenses $ 98,634 $ 86,485
Due to affiliates 31,388 35,157
Security deposits 14,827 15,804
Advance rent 115,091 114,524
Distribution payable 408,576 408,576
Total Liabilities 668,516 660,546
Partners' Capital (Deficit):
General Partners (120,863) (119,221)
Limited Partners 16,008,279 16,015,155
Total Partners' Capital 15,887,416 15,895,934
Total Liabilities and Partners' Capital $ 16,555,932 $ 16,556,480
Consolidated Statement of Partners' Capital
For the three months ended February 28, 1995
General Limited
Partners Partners Total
Balance at December 1, 1994 $ (119,221) $ 16,015,155 $ 15,895,934
Net income (loss) (1,642) 401,700 400,058
Cash distributions 0 (408,576) (408,576)
Balance at February 28, 1995 $ (120,863) $ 16,008,279 $ 15,887,416
Consolidated Statements of Operations
For the three months ended February 28, 1995 and 1994
Income 1995 1994
Rent $ 851,103 $ 811,377
Interest 25,912 9,260
Total Income 877,015 820,637
Expenses
Property operating 275,981 278,674
Depreciation 164,195 162,202
General and administrative 36,781 38,848
Total Expenses 476,957 479,724
Net Income $ 400,058 $ 340,913
Net Income (Loss) Allocated:
To the General Partners $ (1,642) $ (1,622)
To the Limited Partners 401,700 342,535
$ 400,058 $ 340,913
Per limited partnership unit
(50,132 outstanding) $ 8.01 $ 6.83
Consolidated Statements of Cash Flows
For the three months ended February 28, 1995 and 1994
Cash Flows from Operating Activities: 1995 1994
Net income $ 400,058 $ 340,913
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 164,195 162,202
Increase (decrease) in cash arising from
changes in operating assets and liabilities:
Other assets 11,768 (9,005)
Accounts payable and accrued expenses 12,149 (870)
Due to affiliates (3,769) 2,771
Security deposits (977) (1,064)
Advance rent 567 4,606
Net cash provided by operating activities 583,991 499,553
Cash Flows from Financing Activities:
Distributions paid (408,576) (408,576)
Net cash used for financing activities (408,576) (408,576)
Net increase in cash and cash equivalents 175,415 90,977
Cash and cash equivalents at beginning
of period 2,001,535 1,562,452
Cash and cash equivalents at end of period $ 2,176,950 $ 1,653,429
Notes to Consolidated Financial Statements
The unaudited interim consolidated financial statements should be read in
conjunction with the Partnership's annual 1994 audited financial statements
within Form 10-K.
The unaudited financial statements include all adjustments consisting of only
normal recurring accruals which are, in the opinion of management, necessary to
present a fair statement of financial position as of February 28, 1995 and the
results of operations, changes in partners' capital, and cash flows for the
three month period then ended. Results of operations for the period are not
necessarily indicative of the results to be expected for the full year.
No significant events have occurred subsequent to fiscal year 1994, and no
material contingencies exist which would require disclosure in this interim
report per Regulation S-X, Rule 10-01, Paragraph (a)(5).
Part I, Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Liquidity and Capital Resources
As of February 28, 1995, the Partnership had cash and short-term investments of
$2,176,950 which were invested in unaffiliated money market accounts. The
increase of $175,415 from November 30, 1994 is attributable to net cash
provided by operating activities exceeding cash distributions to the Limited
Partners.
Other assets decreased from $146,233 at November 30, 1994 to $134,465 at
February 28, 1995, primarily due to the prepayment in November 1994 of real
estate taxes for the Florida properties, as well as a decrease in rent
receivable.
Accounts payable and accrued expenses increased from $86,485 at November 30,
1994 to $98,634 at February 28, 1995. The increase is primarily attributable
to the timing of payments of real estate taxes and other liabilities.
The Partnership expects sufficient cash flow to be generated from operations to
meet its current operating requirements. Net cash from operations is
distributed to the Limited Partners on a quarterly basis in proportion to the
number of units held by each Limited Partner. On or about April 18, 1995, the
Partnership will pay a distribution of net cash from operations of $8.15 per
unit for the quarter ended February 28, 1995.
Certain age-related repairs and capital improvements which are required at the
properties are being funded from the Partnership's cash reserves and cash flow
from operations. Future cash distributions will depend on the adequacy of cash
flow from operations following capital improvements and could be reduced should
market conditions negatively impact occupancy. The amount of future cash
distributions to the Limited Partners will be determined quarterly following a
review of the Partnership's operations and cash requirements.
Results of Operations
Partnership operations resulted in net income of $400,058 for the three months
ended February 28, 1995, compared with $340,913 for the corresponding period in
fiscal 1994. The improvement in operating results for 1995 is primarily
attributable to an increase in rental income and interest income, and a slight
decrease in both property operating and general and administrative expenses.
Rental income totaled $851,103 for the three months ended February 28, 1995,
compared with $811,377 for the corresponding period in fiscal 1994. The
increase in rental income can be attributed in part to higher occupancy at the
Hampton, Mechanicsville and Widgeon facilities, as well as increased rental
rates at several of the Virginia properties and the Florida properties.
Property operating expenses totaled $275,981 for the three months ended
February 28, 1995, compared with $278,674 for the corresponding period in
fiscal 1994. The decrease is primarily due to lower costs for repairs and
maintenance, utilities and minor non-capitalized improvements, partially offset
by higher payroll costs, management fees, advertising and miscellaneous
expenses. General and administrative expenses totaled $36,781 for the three
months ended February 28, 1995, compared with $38,848 for the corresponding
period in fiscal 1994. The decrease in 1995 reflects lower expenses for legal
fees, transfer agent fees and salary reimbursements, partially offset by higher
audit fees.
The average weighted occupancy at the Partnership's properties was 88% at
February 28, 1995, unchanged from February 28, 1994.
PART II OTHER INFORMATION
Items 1-5 Not applicable
Item 6 Exhibits and reports on Form 8-K.
(a) Exhibits - None
(b) Reports on Form 8-K - No reports on Form 8-K were
filed during the three month period covered by this
report.
SIGNATURES
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.
HUTTON/GSH AMERICAN STORAGE PROPERTIES, L.P.
BY: STORAGE SERVICES INC.
General Partner
Date: April 13, 1995
BY: s/Paul L. Abbott/
Name: Paul L. Abbott
Title: Director, President, Chief
Executive Officer and
Chief Financial Officer
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<PERIOD-END> FEB-28-1995
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