[TEST]
<PAGE>
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended March 31, 1995 Commission File Number 2-98025
______________ _______
SIGNATURE VII LTD. LIMITED PARTNERSHIP
______________________________________________________________________________
(Exact name of registrant as specified in its charter)
Indiana 35-1636684
___________________________________ ____________________________________
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
250 East 96th Street, Suite 450, Indianapolis, Indiana 46240
______________________________________________________ _________
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (317) 581-1111
______________
Check whether the Registrant (1) has filed all reports required to be filed by
Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months, and (2) has been subject to such filing requirements for
the past 90 days.
Yes X No
____ _____
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SIGNATURE VII LTD. LIMITED PARTNERSHIP
INDEX
Part I - FINANCIAL INFORMATION
______________________________
Item 1. Financial Statements (Unaudited)
Balance Sheets
March 31, 1995 and December 31, 1994
Statements of Operations
Three months ended March 31, 1995 and 1994
Statement of Partners' Equity
Three months ended March 31, 1995
Statements of Cash Flows
Three months ended March 31, 1995 and 1994
Note to Financial Statements
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
Part II - OTHER INFORMATION
___________________________
<PAGE>
SIGNATURE VII LTD. LIMITED PARTNERSHIP
Balance Sheets
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
ASSETS
<S> <C> <C>
Current assets:
Cash and cash equivalents $377,218 533,943
Accounts receivable 40,436 26,785
Other current assets 74,064 75,134
_________ _________
Total current assets 491,718 635,862
Property and equipment:
Land 792,528 792,528
Land improvements 443,417 443,417
Buildings 5,415,516 5,374,062
Furniture and equipment 1,653,517 1,639,006
__________ __________
8,304,978 8,249,013
Less accumulated depreciation 2,840,780 2,779,148
__________ __________
Net property and equipment 5,464,198 5,469,865
Furniture and equipment reserves 97,906 131,419
Deferred costs, net of accumulated
amortization of $345,717 and $342,816 93,336 60,567
_________ _________
$6,147,158 6,297,713
_________ _________
_________ _________
LIABILITIES AND PARTNERS' EQUITY
Current liabilities:
Current portion of long-term debt 99,700 98,674
Accounts payable 51,043 35,428
Accrued payroll and related taxes 18,075 30,594
State and local taxes 141,597 125,653
Accrued interest - 4,574
_________ _________
Total current liabilities 310,415 294,923
Long-term debt, less current portion 4,745,545 4,706,957
_________ _________
Total liabilities 5,055,960 5,001,880
Partners' equity 1,091,198 1,295,833
_________ _________
$6,147,158 6,297,713
_________ _________
_________ _________
</TABLE>
<PAGE>
SIGNATURE VII LTD. LIMITED PARTNERSHIP
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
______________________________
1995 1994
__________ __________
<S> <C> <C>
Revenue:
Room revenue $ 667,492 587,741
Other hotel revenue 33,667 31,028
Interest 5,919 1,449
_________ _________
707,078 620,218
Cost and expenses:
Hotel operations 238,606 209,932
Salaries and benefits 167,159 146,057
Management and franchise fees 62,634 55,312
Advertising and reservations 24,357 21,510
Interest 126,056 129,618
Depreciation and amortization 64,533 62,593
_________ _________
683,345 625,022
_________ _________
Net income (loss) 23,733 (4,804)
General partner's interest
in net income (loss) 5,933 (1,201)
_________ _________
Limited partner's interest
in net income (loss) $17,800 (3,604)
_________ _________
_________ _________
Average number of limited partner
units outstanding 451 451
_________ _________
Net income (loss) per limited
partner unit $39.47 (7.99)
_________ _________
_________ _________
</TABLE>
<PAGE>
<TABLE>
SIGNATURE VII LTD. LIMITED PARTNERSHIP
Statement of Partners' Equity
Three months ended March 31, 1995
(Unaudited)
<CAPTION>
General Limited
Partner Partners Total
_________ __________ __________
<S> <C> <C> <C>
Balance at
December 31, 1994 $442,661 853,172 1,295,833
Net income 5,933 17,800 23,733
Cash distributions (57,092) (171,276) (228,368)
Balance at March 31, 1995 $391,502 699,696 1,091,198
________ _________ __________
________ _________ __________
Accumulated balances:
Capital
contributions 1,503,333 4,510,000 6,013,333
Offering expenses - (474,671) (474,671)
Cash distributions (233,587) (700,908) (934,495)
Net loss (878,244) (2,634,725) (3,512,969)
_________ __________ __________
Balance at
March 31, 1995 $391,502 699,696 1,091,198
_________ _________ __________
_________ _________ __________
</TABLE>
<PAGE>
<TABLE>
SIGNATURE VII LTD. LIMITED PARTNERSHIP
Statements of Cash Flows
Three months ended March 31, 1995 and 1994
(Unaudited)
<CAPTION>
1995 1994
______ _______
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $23,733 (4,804)
Items which do not use (provide) cash:
Depreciation of property
and equipment 61,632 59,352
Amortization of deferred costs 2,901 3,241
Write off of deferred loan costs 12,666 -
Accrued revenue and other
expenses, net 6,459 13,859
_________ ________
Net cash provided by
operating activities 107,391 71,648
_________ ________
Cash flows from investing activities:
Additions to furniture and
equipment reserves, net (22,452) (4,898)
_________ _________
Net cash used in
investing activities (22,452) (4,898)
_________ _________
Cash flows from financing activities:
Payments on long-term debt 35,040 (30,817)
Deferred financing costs (48,336) -
Cash distributions to partners (228,368) (71,559)
_________ _________
Net cash used in
financing activities (241,664) (102,376)
_________ _________
Change in cash and cash equivalents (156,725) (35,626)
_________ _________
Cash and cash equivalents at
beginning of period 533,943 287,542
_________ _________
Cash and cash equivalents
at end of period $377,218 251,916
_________ _________
_________ _________
Additional disclosures:
Interest paid 130,630 129,618
_________ __________
_________ __________
Additions to property and
equipment from furniture and
equipment reserves $46,148 7,047
_________ __________
_________ __________
</TABLE>
<PAGE>
SIGNATURE VII LTD. LIMITED PARTNERSHIP
NOTE TO FINANCIAL STATEMENTS (UNAUDITED)
MARCH 31, 1995
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information. Accordingly, the financial statements do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for
a fair presentation have been included. Operating results for the interim
period are not necessarily indicative of the results that may be expected for
the year ended December 31, 1995. For further information, refer to the
financial statements included in the Partnership's annual report on Form 10-
KSB for the year ended December 31, 1994.
<PAGE>
SIGNATURE VII LTD. LIMITED PARTNERSHIP
______________________________________
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
___________________________________________________________
AND RESULTS OF OPERATIONS
_________________________
RESULTS OF OPERATIONS
_____________________
<TABLE>
<CAPTION>
Occupancy Average Daily Rate
_________ __________________
<S> <C> <C> <C> <C> <C> <C>
Hotel YTD YTD Change YTD YTD Change
3/31/95 3/31/94 3/31/95 3/31/94
_______ _______ _______ _______ _______ _______
Columbus 54.4% 53.8% 0.6% $53.79 $51.97 $1.82
Kokomo 69.8% 59.7% 10.1% $52.93 $50.03 $2.90
QTD QTD Percent
3/31/95 3/31/94 Change
_______ _______ ________
Room & Other
Hotel Revenues $701,159 $618,769 13.3%
Interest Income $5,919 $1,449 308.5%
Operating &
Related Expenses $492,756 $432,811 13.9%
Interest Expense $126,056 $129,618 (2.7)%
Depreciation and
Amortization $64,533 $62,593 3.1%
Net Income (Loss) $23,733 ($4,804) (594.0)%
</TABLE>
Room and other hotel revenues of the two hotels increased for the three month
period ended March 31, 1995 compared to the same period in 1994 due to
increases in occupancy and average room rates.
Operating and related expenses of the hotels consist of the following costs
and expenses - hotel operations, salaries and benefits, management and
franchise fees and advertising and reservation contributions:
Hotel operations and salaries and benefits represent all of the operational
and administrative costs of operating the hotels, including all payroll,
supply, utilities, maintenance and miscellaneous expenses. These expenses
increased primarily due to the increase in the number of rooms sold during the
first three months of 1995 compared to 1994.
Management and franchise fees increased due to the increase in room and other
hotel revenue for the same periods. These fees represent amounts paid to
Signature Inns, Inc., the general partner of the Partnership, for property
management, accounting services and franchise fees.
<PAGE>
The Partnership contributes to a cooperative advertising and reservation fund
administered by the general partner. Contributions increased due to the
increase in room and other hotel revenue for the period.
Interest expense represents interest on hotel mortgage loans and capitalized
leases on the hotels. Interest expense decreased due to the scheduled
amortization reduction of the notes. Additionally, the mortgage loan on the
Kokomo hotel was refinanced in January 1995 at an interest rate of 10.48%,
which is lower than the interest rate of the retired notes.
LIQUIDITY AND CAPITAL RESOURCES
_______________________________
The general partner believes that cash generated from the operation of the two
hotels, along with existing cash balances, will provide adequate liquidity for
the Partnership to meet its operating needs during the next twelve months.
<PAGE>
PART II - OTHER INFORMATION
___________________________
Item 1. Legal Proceedings
See note below
Item 2. Changes in Securities
See note below
Item 3. Default upon Senior Securities
See note below
Item 4. Submission of matters to a Vote of Security Holders
See note below
Item 5. Other Information
See note below
Item 6. Exhibits and Reports on Form 8-K
See note below
NOTE:
The response to each of the above items is not applicable or is in the
negative and does not require a response pursuant to the instructions.
<PAGE>
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.
SIGNATURE INNS, INC., General Partner
of Signature VII Ltd. Limited Partnership
Date May 10, 1994 By_________________________________________
John D. Bontreger, President and C.E.O.
Signature Inns, Inc.
Date May 10, 1994 By__________________________________________
Mark D. Carney, Vice President Finance and
C.F.O. Signature Inns, Inc.
Date May 10, 1994 By_________________________________________
Martin D. Brew, Treasurer/Controller
Signature Inns, Inc.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Consolidated Balance Statement and Consolidated Statement of Operations of
Signature VII Ltd. Limited Partnership as of and for the three months ended
March 31, 1995, and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<CIK> 0000769603
<NAME> SIGATURE VII LTD. L.P.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> MAR-31-1995
<CASH> 377,218
<SECURITIES> 0
<RECEIVABLES> 40,436
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 491,718
<PP&E> 8,304,978
<DEPRECIATION> 2,840,780
<TOTAL-ASSETS> 6,147,158
<CURRENT-LIABILITIES> 310,415
<BONDS> 4,745,545
<COMMON> 1,091,198
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 6,147,158
<SALES> 0
<TOTAL-REVENUES> 707,078
<CGS> 0
<TOTAL-COSTS> 557,289
<OTHER-EXPENSES> 5,933
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 126,056
<INCOME-PRETAX> 17,800
<INCOME-TAX> 0
<INCOME-CONTINUING> 17,800
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 17,800
<EPS-PRIMARY> 39.47
<EPS-DILUTED> 39.47
</TABLE>
