<PAGE> 1
Securities and Exchange Commission
Washington, D.C. 20549
Form 10 Q/A
Quarterly Report under section 13 or 15(d) of the
Securities and Exchange Act of 1934
For the Quarter Ended March 31, 1995
Commission file number 33-633
American Retirement Villas Properties
-----------------------------------------
(Exact name of Registrant as specified in its charter)
California 33-0154077
---------- ----------
state or other jurisdiction (IRS Employer Iden-
of organization tification number)
245 Fischer Avenue, Suite D-1
Costa Mesa, California 92626
------------------------------- ----------
(address of principal executive (zip code)
office)
Registrant's telephone number,
including area code (714) 751-7400
--------------
Indicate by a check mark whether the registrant (1) has filed all the
reports to be filed by Section 13 or 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 reports), and
(2) has been subject to such filing requirements for the past 90 days.
YES X NO
------- --------
<PAGE> 2
PART I, ITEM I
AMERICAN RETIREMENT VILLAS PROPERTIES
(a California Limited Partnership)
Balance Sheets
March 31, 1995 (unaudited) and December 31, 1994 (audited)
<TABLE>
<CAPTION>
Assets 1995 1994
------ (Unaudited) (Audited)
------------ ------------
<S> <C> <C>
Properties, at cost (notes 3, 4 and 5)
Land $ 2,695,099 $ 2,695,099
Building and improvements, less
accumulated depreciation of $4,869,011
in 1995 and $4,689,608 in 1994 14,870,256 15,035,175
Furniture, fixtures and equipment, less
accumulated depreciation of $331,617
in 1995 and $330,734 in 1994 238,380 239,999
----------- -----------
Net Properties 17,803,735 17,970,273
Cash and cash equivalents 471,901 245,898
Loan fees, less accumulated amortization
of $6,837 in 1995 and $4,022 in 1994 26,944 28,151
Other assets (note 6) 101,072 107,784
----------- -----------
Total assets $18,403,652 $18,352,106
=========== ===========
Liabilities and Partners' Equity
--------------------------------
Notes payable (note 5) $ 986,264 $ 989,281
Accounts payable and accrued expenses 450,512 350,833
Amounts payable to affiliates (note 3) 25,905 9,601
Distribution payable to partners 492,919 455,919
----------- -----------
Total Liabilities 1,955,600 1,805,634
Partners' capital (note 2)
30,000 units outstanding at March
31, 1995 and December 31, 1994 16,448,052 16,546,472
----------- -----------
Total liabilities and partners' equity $18,403,652 $18,352,106
=========== ===========
</TABLE>
See accompanying notes to financial statements (unaudited).
<PAGE> 3
AMERICAN RETIREMENT VILLAS PROPERTIES
(a California Limited Partnership)
Statements of Operations (unaudited)
For the quarter ended March 31, 1995
For the quarter ended March 31, 1994
<TABLE>
<CAPTION>
1995 1994
(unaudited) (unaudited)
----------- -----------
<S> <C> <C>
Revenues:
Rent $1,793,714 $1,662,309
Assisted living 182,801 152,445
Interest 0 156
Other (note 6) 45,783 56,615
---------- ----------
Total Revenues 2,022,298 1,871,525
---------- ----------
Costs and expenses (note 3):
Rental property operations 994,897 931,519
Assisted living 81,684 75,419
General and administrative 247,300 249,847
Property taxes 66,197 68,307
Repairs and maintenance 36,471 34,431
Advertising 10,559 7,023
Interest (note 5) 23,480 31,489
Legal (note 6) 2,574 2,845
Bad debt 1,555 0
Depreciation and amortization 205,816 231,613
---------- ----------
Total costs and expenses 1,670,533 1,632,493
Net income $ 351,765 $ 239,032
========== ==========
Net income to General Partner $ 3,518 $ 2,390
Net income to limited partner $ 348,247 $ 236,642
========== ==========
Net income per limited partners
Unit $ 11.61 $ 7.89
========== ==========
</TABLE>
See accompanying notes to financial statements (unaudited).
<PAGE> 4
AMERICAN RETIREMENT VILLAS PROPERTIES
(a California Limited Partnership)
Statement of Cash Flows (unaudited)
For the three months ended March 31, 1995
For the three months ended March 31, 1994
<TABLE>
<CAPTION>
1995 1994
(unaudited) (unaudited)
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 351,765 $ 239,032
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 205,813 231,613
Change in assets and liabilities:
Decrease (increase) in other assets 6,307 (21,133)
Decrease in loan fees 1,207 2,294
Increase in accounts
payable and accrued expenses 98,879 82,330
Increase (decrease) in amounts
payable to affiliates 16,304 380
--------- ---------
Net cash provided by operating activites 680,275 534,516
Cash flows from investing activities:
Capital expenditures (38,069) (52,830)
--------- ---------
Net cash used in investing
activities (38,069) (52,830)
Cash flows from financing activities:
Net borrowings under line of credit
agreement 300,000
Principle repayment of notes payable (3,017) (327,768)
Distributions paid (413,186) (460,651)
--------- ---------
Net cash used in financing activities (416,203) (488,419)
--------- ---------
Increase (decrease) in cash and cash equivalents 226,003 (6,733)
Cash and cash equivalents at beginning of period 245,898 498,543
--------- ---------
Cash and cash equivalents at ending of period $ 471,901 $ 491,810
========= =========
</TABLE>
See accompanying notes to financial statements (unaudited).
<PAGE> 5
AMERICAN RETIREMENT VILLAS PROPERTIES
(a California Limited Partnership)
Notes to Financial Statements (unaudited)
MARCH 31, 1995
(1) Summary of Significant Accounting Policies
------------------------------------------
Basis of Accounting
-------------------
Pursuant to Regulation S-X Rule 10-1(5) the material stated in the
December 31, 1994 Form 10K is incorporated by this reference.
Depreciation
------------
Pursuant to Regulation S-X Rule 10-1(5) the material stated in the
December 31, 1994 Form 10K is incorporated by this reference.
Pre-Opening Costs
-----------------
Pursuant to Regulation S-X Rule 10-1(5) the material stated in the
December 31, 1994 Form 10K is incorporated by this reference.
Loan Fees
---------
Pursuant to Regulation S-X Rule 10-1(5) the material stated in the
December 31, 1994 Form 10K is incorporated by this reference.
Rental Income
-------------
Pursuant to Regulation S-X Rule 10-1(5) the material stated in the
December 31, 1994 Form 10K is incorporated by this reference.
Income Taxes
------------
Pursuant to Regulation S-X Rule 10-1(5) the material stated in the
December 31, 1994 Form 10K is incorporated by this reference.
Net Income Per Limited Partner Unit
-----------------------------------
Pursuant to Regulation S-X Rule 10-1(5) the material stated in the
December 31, 1994 Form 10K is incorporated by this reference.
The weighted average number of units outstanding at March 31,
1995 and March 31, 1994 was 30,000. (continued)
<PAGE> 6
AMERICAN RETIREMENT VILLAS PROPERTIES
(a California Limited Partnership)
Notes to Financial Statements (unaudited)
MARCH 31, 1995
Cash and Cash Equivalents
-------------------------
Pursuant to Regulation S-X Rule 10-1(5) the material stated in the
December 31, 1994 Form 10K is incorporated by this reference.
Reclassifications
-----------------
Pursuant to Regulation S-X Rule 10-1(5) the material stated in the
December 31, 1994 Form 10K is incorporated by this reference.
(2) Organization and Partnership Agreement
------------------------------------------
Pursuant to Regulation S-X Rule 10-1(5) the material stated in the
December 31, 1994 Form 10K is incorporated by this reference.
(3) Transactions with Affiliates
--------------------------------
Pursuant to Regulation S-X Rule 10-1(5) the material stated in the
December 31, 1994 Form 10K is incorporated by this reference, except for the
following additional comments. For the three months ended March 31, 1995,
property management and partnership management fees of $101,115 and $62,395
respectively, were paid or accrued to the Managing General Partner.
(4) Properties
--------------
Villa Bonita:
Pursuant to Regulation S-X Rule 10-1(5) the material stated in the
December 31, 1994 Form 10K is incorporated by this reference.
Rancho Park Villa:
Pursuant to Regulation S-X Rule 10-1(5) the material stated in the
December 31, 1994 Form 10K is incorporated by this reference.
Tamalpais Creek:
Pursuant to Regulation S-X Rule 10-1(5) the material stated in the
December 31, 1994 Form 10K is incorporated by this reference.
(continued)
<PAGE> 7
AMERICAN RETIREMENT VILLAS PROPERTIES
(a California Limited Partnership)
Notes to Financial statements (unaudited)
MARCH 31, 1995
Maria del Sol:
Pursuant to Regulation S-X Rule 10-1(5) the material stated in the
December 31, 1994 Form 10K is incorporated by this reference.
(5) Notes Payable
-----------------
Pursuant to Regulation S-X Rule 10-1(5) the material stated in the
December 31, 1994 Form 10K is incorporated by this reference.
(6) Property Tax Refund
-----------------------
Pursuant to Regulation S-X Rule 10-1(5) the material stated in the
December 31, 1994 Form 10K is incorporated by this reference.
<PAGE> 8
PART I ITEM II
AMERICAN RETIREMENT VILLAS PROPERTIES
(a California Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
(1) Liquidity.
The General Partners expect that the cash to be generated from
operations of all Registrant's properties will be adequate to pay operating
expenses and provide distributions to the Partners. On a long-term basis, the
Registrant's liquidity is sustained primarily from cash flow provided by
operating activities. During the three months ended March 31, 1995, net cash
provided by operating activities was approximately $680,275 as compared to cash
provided by operating activities of approximately $534,516 for the three months
ending March 31, 1994.
During the three months ended March 31, 1995, the Registrant used cash
in investing activities of $38,069 compared to $52,830 for the three months
ended March 31, 1994. The Registrant's investing activities consisted of
capital improvements made on its four properties.
During the three months ended March 31, 1995, the Registrant used net
cash in financing activities of $416,203 compared to $488,419 for the three
months ended March 31, 1994. The Registrant's investing activities consisted of
principal reduction on notes payable and distributions paid to the Partners.
The General Partners are not aware of any trends, other than national
economic conditions, which have had or which may be reasonably expected to have
a material favorable or unfavorable impact on revenues or income from the
operations or sale of properties. The General Partners believe that if the
inflation rate increases they will be able to pass the subsequent increase in
operating expenses onto the residents of the properties by way of higher rental
and Assisted Living rates. The Registrant has long term debt of approximately
$986,000, as of March 31, 1995 which matures on September 20, 2000. The amount
of this indebtedness is minor in relation to the Registrant's capital.
(2) Capital Resources.
Registrant contemplates spending approximately $200,000 for capital
expenditures during 1995 for physical improvements at its four facilities. The
funds for these improvements should be available from operations.
There are no known material trends, favorable or unfavorable, in the
Registrant's capital resources, and there is no expected change in the mix of
such resources.
<PAGE> 9
(3) Results of Operations.
Three months ended March 31, 1995 compared with the three months ended
March 31, 1994.
Revenue for the three months ended March 31, 1995, and the three
months ended March 31, 1994 includes rental income and Assisted Living revenue
from all four facilities, interest earned on cash balances and other revenue.
Total revenues for the three months ending March 31, 1995 was $2,022,298 an
increase of approximately 8% over revenues of $1,871,525 for the three months
ended March 31, 1994.
The largest component of revenue, rent, increased by almost 8% from
the three months ended March 31, 1994 to the three months ended March 31, 1995.
This increase in rent was due to an increase in occupancy of approximately 6%.
Revenue from Assisted Living increased by almost 20% from the three
months ended March 31, 1994 to the three months ended March 31, 1995. The
increase in Assisted Living was due to aggressive marketing of the Assisted
Living services and the resulting increase in the number of residents using the
program.
Interest and other revenue decreased by approximately 19% from the
three months ended March 31, 1994 to the three months ended March 31, 1995.
Interest income results from interest earned on cash deposits. Other revenue
generally includes processing fees and beauty shop revenue.
Sources of revenue for the three months ended March 31, 1995 and March
31, 1994 are summarized as follows:
<TABLE>
<CAPTION>
Quarter Ended Quarter Ended
March 31, 1995 March 31, 1994
-------------- --------------
<S> <C> <C>
Rent $1,793,714 $1,662,309
Assisted Living 182,801 152,445
Interest and Other 45,783 56,771
---------- ----------
Total Revenue $2,022,298 $1,871,525
========== ==========
</TABLE>
Total costs and expenses for the three months ended March 31, 1995
were $1,670,533, an increase of over 2% over costs and expenses of $1,632,493
for the three months ended March 31, 1994.
<PAGE> 10
The largest component of expenses, rental property operations, consist
primarily of the property management costs, payroll related expenses,
utilities, food expenses and maintenance and supplies. Rental property
operations expense increased by almost 7% from the three months ended March 31,
1994 to the three months ended March 31, 1995. The increase in rental property
operating expenses is primarily due to increased in payroll expenses and
increases in occupancy which generate increases in expenses.
Assisted Living expenses consist primarily of the related payroll
expense. Assisted Living expenses increased by over 8% from the three months
ended March 31, 1994 to the three months ended March 31, 1995. Assisted Living
expenses increased due to the increases in size of the related staff providing
Assisted Living services. This increase corresponds to the increase in
Assisted Living revenue.
General and administrative expenses are comprised of, but not limited
to, costs for accounting, partnership administration, bad debt, data
processing, investor relations, insurance, and professional services. General
and administrative expenses decreased about 1% from the three months ended
March 31, 1994 to the three months ended March 31, 1995.
Depreciation and amortization expense decreased by slightly more than
11% from the three months ended March 31, 1994 to the three months ended March
31, 1995. Depreciation and amortization decreased due to a portion of fixed
assets becoming fully depreciated.
Interest expense decreased over 25% for the three months ended March
31, 1994 compared to the three months ended March 31, 1995, as a result of
paying off a loan secured by a first deed of trust on Villa Bonita of $321,250
on or about March 31, 1994.
Selected costs and expenses for the three months ended March 31, 1995
and March 31, 1994 are as follows:
<TABLE>
<CAPTION>
Quarter Ended Quarter Ended
March 31, 1995 March 31, 1994
-------------- --------------
<S> <C> <C>
Rental Property Operations $994,897 $931,519
Assisted Living 81,684 75,419
General and Administrative 247,300 249,847
Depreciation and Amortization 45,783 56,615
Property Taxes 66,197 68,307
Interest 23,480 31,489
</TABLE>
<PAGE> 11
PART II
AMERICAN RETIREMENT VILLAS PROPERTIES
(a California Limited Partnership)
Item 1 Legal Proceedings
-----------------------------------------------------------
None
Item 2 Change in Securities
-----------------------------------------------------------
None
Item 3 Defaults Upon Senior Securities
-----------------------------------------------------------
None
Item 4 Submission of Matters to Vote of Security Holders
-----------------------------------------------------------
None
Item 5 Other Information
-----------------------------------------------------------
None
Item 6 Exhibits and Reports on Form 8K
-----------------------------------------------------------
A. Exhibit 27 - Financial Data Schedule
B. None
<PAGE> 12
AMERICAN RETIREMENT VILLAS PROPERTIES
(a California Limited Partnership)
Pursuant to the requirement 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.
AMERICAN RETIREMENT VILLAS PROPERTIES,
A CALIFORNIA LIMITED PARTNERSHIP
By ARV Housing Group, Inc.
---------------------------
Managing General Partner
Date: August 18, 1995 By JOHN A. BOOTY
--------------------------
John A. Booty
President
Date: August 18, 1995 By GRAHAM P. ESPLEY-JONES
--------------------------
Graham P. Espley-Jones
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-01-1995
<CASH> 471,901
<SECURITIES> 0
<RECEIVABLES> 13,497
<ALLOWANCES> 405
<INVENTORY> 30,000
<CURRENT-ASSETS> 572,973
<PP&E> 20,309,601
<DEPRECIATION> 5,200,628
<TOTAL-ASSETS> 18,403,652
<CURRENT-LIABILITIES> 519,150
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 16,546,471
<TOTAL-LIABILITY-AND-EQUITY> 18,403,652
<SALES> 0
<TOTAL-REVENUES> 2,022,298
<CGS> 0
<TOTAL-COSTS> 1,123,612
<OTHER-EXPENSES> 327,942
<LOSS-PROVISION> 1,555
<INTEREST-EXPENSE> 23,480
<INCOME-PRETAX> 351,765
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 351,765
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
