UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q/A
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the period ended March 31, 1998
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or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 [No Fee Required]
For the transition period from to
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Commission File Number 0-14477
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PS PARTNERS VI, LTD., a California Limited Partnership
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(Exact name of registrant as specified in its charter)
California 95-3950440
- ---------------------------------------- ----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
701 Western Avenue
Glendale, California 91201-2394
- ---------------------------------------- ----------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (818) 244-8080
--------------
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
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<PAGE>
INDEX
PART I. FINANCIAL INFORMATION
Condensed balance sheets at March 31, 1998
and December 31, 1997 2
Condensed statements of income for the three
months ended March 31, 1998 and 1997 3
Condensed statements of cash flows for the three
months ended March 31, 1998 and 1997 4
Notes to condensed financial statements 5
Management's discussion and analysis of financial condition
and results of operations 6-8
PART II. OTHER INFORMATION
(Items 1 through 5 are not applicable)
Item 6 - Exhibits and Reports on Form 8-K 9
<PAGE>
PS PARTNERS VI, LTD.,
a California Limited Partnership
CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
------------------------------------
(Unaudited)
(Restated - See Note 5)
ASSETS
------
<S> <C> <C>
Cash and cash equivalents $1,303,000 $1,144,000
Rent and other receivables 4,000 4,000
Real estate facilities, at cost:
Land 404,000 404,000
Buildings and equipment 2,781,000 2,781,000
------------------------------------
3,185,000 3,185,000
Less accumulated depreciation (1,314,000) (1,280,000)
------------------------------------
1,871,000 1,905,000
Investment in real estate entities 35,173,000 35,657,000
Other assets 12,000 5,000
------------------------------------
$38,363,000 $38,715,000
====================================
LIABILITIES AND PARTNERS' EQUITY
--------------------------------
Accounts payable $54,000 $63,000
Advance payments from renters 16,000 9,000
Partners' equity:
Limited partners' equity, $500 per unit, 150,000
units authorized, issued and outstanding 37,813,000 38,160,000
General partners' equity 480,000 483,000
------------------------------------
Total partners' equity 38,293,000 38,643,000
------------------------------------
$38,363,000 $38,715,000
====================================
</TABLE>
See accompanying notes.
2
<PAGE>
PS PARTNERS VI, LTD.,
a California Limited Partnership
CONDENSED STATEMENTS OF INCOME
(Restated - See Note 5)
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
--------------------------------------
1998 1997
--------------------------------------
REVENUE:
<S> <C> <C>
Rental income $138,000 $138,000
Equity in earnings of real estate entities 608,000 535,000
Interest income 17,000 24,000
--------------------------------------
763,000 697,000
--------------------------------------
COSTS AND EXPENSES:
Cost of operations 52,000 53,000
Management fees 8,000 8,000
Depreciation and amortization 34,000 32,000
Administrative 18,000 20,000
--------------------------------------
112,000 113,000
--------------------------------------
NET INCOME $651,000 $584,000
======================================
Limited partners' share of net income
($3.63 per unit in 1998 and
$3.19 per unit in 1997) $545,000 $479,000
General partners' share of net income 106,000 105,000
--------------------------------------
$651,000 $584,000
======================================
</TABLE>
See accompanying notes.
3
<PAGE>
PS PARTNERS VI, LTD.,
a California Limited Partnership
CONDENSED STATEMENTS OF CASH FLOWS
(Restated - See Note 5)
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
--------------------------------------
1998 1997
--------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income $651,000 $584,000
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 34,000 32,000
Increase in rent and other receivables - (10,000)
(Increase) decrease in other assets (7,000) 5,000
Decrease in accounts payable (9,000) (3,000)
Increase in advance payments from renters 7,000 5,000
Equity in earnings of real estate entities (608,000) (535,000)
--------------------------------------
Total adjustments (583,000) (506,000)
--------------------------------------
Net cash provided by operating activities 68,000 78,000
--------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Distributions from real estate entities 1,092,000 596,000
Additions to real estate facilities - (18,000)
--------------------------------------
Net cash provided by investing activities 1,092,000 578,000
--------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (1,001,000) (1,002,000)
--------------------------------------
Net cash used in financing activities (1,001,000) (1,002,000)
--------------------------------------
Net increase (decrease) in cash and cash equivalents 159,000 (346,000)
Cash and cash equivalents at the beginning of the period 1,144,000 1,867,000
--------------------------------------
Cash and cash equivalents at the end of the period $1,303,000 $1,521,000
======================================
</TABLE>
See accompanying notes.
4
<PAGE>
PS PARTNERS VI, LTD.,
a California Limited Partnership
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 1998
(UNAUDITED)
1. The accompanying unaudited condensed financial statements have been
prepared pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations, although management believes
that the disclosures contained herein are adequate to make the
information presented not misleading. These unaudited condensed
financial statements should be read in conjunction with the financial
statements and related notes appearing in the Partnership's Form 10-K/A
for the year ended December 31, 1997.
2. In the opinion of management, the accompanying unaudited condensed
financial statements reflect all adjustments, consisting of only normal
accruals, necessary to present fairly the Partnership's financial
position at March 31, 1998, the results of operations for the three
months ended March 31, 1998 and 1997 and cash flows for the three
months then ended.
3. The results of operations for the three months ended March 31, 1998 are
not necessarily indicative of the results to be expected for the full
year.
4. In January 1997, the Joint Venture, PSI and other related partnerships
transferred a total of 35 business parks to PS Business Parks, LP
("PSBPLP"), an operating partnership formed to own and operate business
parks in which PSI has a significant interest. Included among the
properties transferred were the Joint Venture's business parks in
exchange for a partnership interest in PSBPLP. The general partner of
PSBPLP is PS Business Parks, Inc.
5. Previously, the Partnership consolidated the Joint Venture in its
financial statements. The accompanying financial statements have been
restated to de-consolidate the Joint Venture. This restatement had no
impact upon net income or Partner's Equity.
6. Summarized combined financial data with respect to the Real Estate
Entities is as follows:
Three Months Ended March 31,
----------------------------
1998 1997
----------- -----------
Total revenues.......................... $17,820,000 $8,922,000
Minority interest in income............. $2,814,000 $1,813,000
Net income.............................. $4,938,000 $1,217,000
5
<PAGE>
PS PARTNERS VI, LTD.,
a California Limited Partnership
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FORWARD LOOKING STATEMENTS
- --------------------------
Management's Discussion and Analysis of Financial Condition and Results
of Operations contains "forward looking" statements that involve risks and
uncertainties and are based upon a number of assumptions. Actual results and
trends may differ materially depending upon a number of factors. Information
regarding these factors is contained in the Partnership's Annual Report on Form
10-K/A for the fiscal year ended December 31, 1997.
RESULTS OF OPERATIONS
- ---------------------
THREE MONTHS ENDED MARCH 31, 1998 COMPARED TO THREE MONTHS ENDED MARCH 31, 1997:
The Partnership's net income was $651,000 and $584,000 for the three
months ended March 31, 1998 and 1997, respectively, representing an increase of
$67,000, or 11%. This increase was primarily due to the Partnership's share of
improved property operations at the real estate facilities that the Partnership
has an interest in.
Property Operations
- -------------------
Rental income for the Partnership's wholly-owned mini-warehouse
properties remained stable at $138,000 for the three months ended March 31, 1998
and 1997. Cost of operations (including management fees) decreased $1,000, or
2%, to $60,000 from $61,000 for the three months ended March 31, 1998 and 1997,
respectively. Accordingly, for the Partnership's wholly-owned mini-warehouse
properties, property net operating income increased by $1,000, or 1%, from
$77,000 to $78,000 for the three months ended March 31, 1997 and 1998,
respectively.
Equity in Earnings of Real Estate Entities
- ------------------------------------------
Equity in earnings of real estate entities was $608,000 in the three
months ended March 31, 1998 as compared to $535,000 during the three months
ended March 31, 1997, representing an increase of $73,000, or 14%. This was due
primarily to the Partnership's share of improved operating results at the Joint
Venture's mini-warehouse properties.
6
<PAGE>
Depreciation and Amortization
- -----------------------------
Depreciation and amortization increased $2,000, or 6%, from $32,000 to
$34,000 for the three months ended March 31, 1997 and 1998, respectively. This
increase was primarily attributable to the depreciation of capital expenditures
made during 1997 and 1998.
SUPPLEMENTAL PROPERTY DATA
- --------------------------
Most of the Partnership's net income is from the Partnership's share of
the operating results of the Mini-Warehouse Properties. Therefore, in order to
evaluate the Partnership's operating results, the General Partners analyze the
operating performance of the Mini-Warehouse Properties.
THREE MONTHS ENDED MARCH 31, 1998 COMPARED TO THREE MONTHS ENDED MARCH 31, 1997:
Rental income for the Mini-Warehouse Properties was $2,949,000 compared
to $2,822,000 for the three months ended March 31, 1998 and 1997, respectively,
representing an increase of $127,000, or 5%. The increase in rental income was
primarily attributable to increased rental rates and occupancy levels at the
Mini-Warehouse Properties. The monthly average realized rent per square foot for
the Mini-Warehouse Properties was $.64 compared to $.63 for the three months
ended March 31, 1998 and 1997, respectively. The weighted average occupancy
levels at the Mini-Warehouse Properties increased from 89% to 91% for the three
months ended March 31, 1997 and 1998, respectively. Cost of operations
(including management fees) increased $54,000, or 5%, to $1,146,000 from
$1,092,000 for the three months ended March 31, 1998 and 1997, respectively.
This increase was primarily attributable to increases in advertising and repairs
and maintenance expenses. Accordingly, for the Mini-Warehouse Properties,
property net operating income increased by $73,000, or 4%, from $1,730,000 to
$1,803,000 for the three months ended March 31, 1997 and 1998, respectively.
Liquidity and Capital Resources
- -------------------------------
The Partnership has adequate sources of cash to finance its operations,
both on a short-term and long-term basis, primarily from internally generated
cash from property operations and cash reserves. Cash generated from operations
and distributions from real estate entities ($1,160,000 for the three months
ended March 31, 1998) has been sufficient to meet all current obligations of the
Partnership.
7
<PAGE>
During 1998, the Partnership anticipates approximately $31,000 of
capital improvements for the Partnership's wholly-owned properties. As of March
31, 1998 the Partnership has not made any capital improvements.
The Partnership paid distributions to the limited and general partners
totaling $892,000 ($5.95 per unit) and $109,000, respectively, during the first
three months of 1998. Future distribution rates may be adjusted to levels which
are supported by operating cash flow after capital improvements and any other
necessary obligations.
8
<PAGE>
PART II. OTHER INFORMATION
ITEMS 1 through 5 are not applicable.
ITEM 6 Exhibits and Reports on Form 8-K
--------------------------------
(a) The following Exhibits are included herein:
(27) Financial Data Schedule
(b) Form 8-K
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
DATED: March 18, 1999
PS PARTNERS VI, LTD.,
a California Limited Partnership
BY: Public Storage, Inc.
General Partner
BY: /s/ John Reyes
--------------------------------------------
John Reyes
Senior Vice President and Chief Financial
Officer of Public Storage, Inc.
(principal financial and accounting officer)
9
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000773281
<NAME> PS PARTNERS VI, LTD.
<MULTIPLIER> 1
<CURRENCY> U.S.$
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-1-1998
<PERIOD-END> MAR-31-1998
<EXCHANGE-RATE> 1
<CASH> 1,303,000
<SECURITIES> 0
<RECEIVABLES> 4,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,307,000
<PP&E> 3,185,000
<DEPRECIATION> (1,314,000)
<TOTAL-ASSETS> 38,363,000
<CURRENT-LIABILITIES> 70,000
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 38,293,000
<TOTAL-LIABILITY-AND-EQUITY> 38,363,000
<SALES> 0
<TOTAL-REVENUES> 763,000
<CGS> 0
<TOTAL-COSTS> 60,000
<OTHER-EXPENSES> 52,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 651,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 651,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 651,000
<EPS-PRIMARY> 3.63
<EPS-DILUTED> 3.63
</TABLE>
