<PAGE> 1
Securities and Exchange Commission
Washington, D.C. 20549
Form 10 Q
Quarterly Report under section 13 or 15(d) of the
Securities and Exchange Act of 1934
For the Quarter Ended June 30, 1995
Commission file number 33-633
American Retirement Villas Properties
-------------------------------------
(Exact name of Registrant as specified in it's 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
Form 10-Q
June 30, 1995
PART I ITEM 1
AMERICAN RETIREMENT VILLAS PROPERTIES
(a California Limited Partnership)
Balance Sheets (Unaudited)
June 30, 1994 and December 31, 1993
<TABLE>
<CAPTION>
Assets
------ 1995 1994
----------- -----------
<S> <C> <C>
Properties, at cost (notes 4 and 5)
Land $ 2,695,099 $ 2,695,099
Building and improvements, less
accumulated depreciation of $5,048,555
in 1995 and $4,689,608 in 1994 14,707,999 15,035,175
Furniture, fixtures and equipment less
accumulated depreciation of $334,697
in 1995 and $330,734 in 1994 257,116 239,999
----------- -----------
Net Properties 17,660,214 17,970,273
Cash and cash equivalents 310,977 245,898
Loan fees, less accumulated amortization
of $8,043 in 1995 and $5,630 in 1994 25,738 28,151
Other assets 291,247 107,784
----------- -----------
Total assets $18,288,177 $18,352,106
=========== ===========
Liabilities and Partners' Capital
---------------------------------
Notes payable (note 6) $ 983,690 $ 989,281
Accounts payable and accrued expenses 426,733 350,833
Amounts payable to affiliate (note 3) 14,942 9,601
Distribution payable to partners 52,731 455,919
----------- -----------
Total Liabilities 1,478,097 1,805,634
Partners' capital (note 2)
30,000 units outstanding at June
30, 1993 and December 31, 1994 16,810,080 16,546,472
----------- -----------
Total liabilities and partners' capital $18,288,177 $18,352,106
=========== ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE> 3
Form 10-Q
June 30, 1995
PART I ITEM 1 (continued)
AMERICAN RETIREMENT VILLAS PROPERTIES
(a California Limited Partnership)
Statements of Operations (unaudited)
For the quarter ended June 30, 1995
For the quarter ended June 30, 1994
For the six months ended June 30, 1995
For the six months ended June 30, 1994
<TABLE>
<CAPTION>
Quarter Quarter Six months Six months
ended June ended June ended June ended June
30, 1995 30, 1994 30, 1995 30, 1994
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues:
Rent 1,820,678 1,710,142 3,614,392 3,372,451
Assisted living 201,931 176,497 384,731 328,941
Interest 0 148 0 304
Other 49,596 45,958 95,380 102,454
---------- ---------- ---------- ----------
Total Revenues 2,072,205 1,932,745 4,094,504 3,804,150
---------- ---------- ---------- ----------
Costs and expenses:
Rental property operations (note 3 and 7) 1,052,147 1,040,912 2,094,808 2,002,762
Assisted living (note 3) 92,545 76,343 174,230 151,762
General and administrative (note 3) 251,743 244,829 499,043 495,962
Depreciation and amortization 206,551 203,301 412,367 434,914
Property taxes 62,460 63,849 128,658 132,156
Advertising 8,344 12,027 7,610 22,086
Interest (note 6) 23,922 27,528 47,402 59,017
Legal 7,212 2,946 9,786 5,791
Bad debt 705 1,608 2,260 1,608
---------- ---------- ---------- ----------
Total costs and expenses 1,705,629 1,673,344 3,376,163 3,306,058
Net income $ 366,575 $ 259,401 $ 718,341 $ 498,093
========== ========== ========== ==========
Net income to General Partner $ 3,666 $ 2,594 $ 7,183 $ 4,981
Net income to limited partner $ 362,909 $ 256,807 $ 711,157 $ 493,112
========== ========== ========== ==========
Net income per limited partners unit $ 12.10 $ 8.56 $ 23.71 $ 16.44
========== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE> 4
Form 10-Q
June 30, 1995
PART I ITEM 1
AMERICAN RETIREMENT VILLAS PROPERTIES
(a California Limited Partnership)
Statement of Cash Flows (unaudited)
For the six months ended June 30, 1995
For the six months ended June 30, 1994
<TABLE>
<CAPTION>
1995 1994
---------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 718,341 $ 498,093
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 412,367 434,914
Change in assets and liabilities:
Increase in other assets (183,463) (48,292)
Decrease in loan fees 2,413 6,052
Increase in accounts
payable and accrued expenses 75,900 45,394
Increase (decrease) in amounts payable
to affiliates 5,341 (5,695)
---------- -----------
Total adjustments 312,558 432,373
Net cash provided by operating activities 1,030,899 930,466
---------- -----------
Cash flows from investing activities:
Capital expenditures (52,851) (111,603)
---------- -----------
Net cash used in investing activities (52,851) (111,603)
Cash flows from financing activities:
Principal reduction of notes payable (5,591) (330,086)
Distributions paid (907,376) (869,458)
---------- -----------
Net cash used in financing activities (912,968) (1,199,544)
---------- -----------
Decrease in cash 65,080 (380,681)
Cash at the beginning of the period 245,898 498,543
---------- -----------
Cash at the end of the period $ 310,978 $ 117,862
========== ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE> 5
Form 10-Q
June 30, 1995
PART I ITEM 1
AMERICAN RETIREMENT VILLAS PROPERTIES
(a California Limited Partnership)
Notes to Financial Statements (unaudited)
June 30, 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.
Carrying Value of Real Estate
-----------------------------
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
Form 10-Q
June 30, 1995
PART I ITEM 1
AMERICAN RETIREMENT VILLAS PROPERTIES
(a California Limited Partnership)
Notes to Financial Statements (unaudited)
June 30, 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
June 30, 1995 property management and partnership management fees
of $103,610 and $65,332 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
Form 10-Q
June 30, 1995
PART I ITEM 1
AMERICAN RETIREMENT VILLAS PROPERTIES
(a California Limited Partnership)
Notes to Financial Statements (unaudited)
June 30, 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) Accounts Payable and Accrued Expenses
------------
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) 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.
(7) ESOP
------------
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
Form 10-Q
June 30, 1995
PART I ITEM II
AMERICAN RETIREMENT VILLAS PROPERTIES
(a California Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
---------------------------
CONDITION AND RESULTS OF OPERATIONS
---------------------------
(b) 1 Material Change in Financial Condition
--------------------------------
None
(b) 2 Material Changes in Results of Operation
--------------------------------
None
<PAGE> 9
Form 10-Q
June 30, 1995
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
(continued)
<PAGE> 10
Form 10-Q
June 30, 1995
PART II
AMERICAN RETIREMENT VILLAS PROPERTIES
(a California Limited Partnership)
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.
AMERICAN RETIREMENT VILLAS PROPERTIES,
A CALIFORNIA LIMITED PARTNERSHIP
By ARV HOUSING GROUP, INC.
-------------------------------
Managing General Partner
Date: August 11, 1995 By GARY L. DAVIDSON
-------------------------------
Gary L. Davidson
Chairman of the Board
Date: August 11, 1995 By JOHN A. BOOTY
-------------------------------
John A. Booty
President
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> JUN-30-1995
<CASH> 310,977
<SECURITIES> 0
<RECEIVABLES> 262,057
<ALLOWANCES> (810)
<INVENTORY> 30,000
<CURRENT-ASSETS> 602,224
<PP&E> 23,077,247
<DEPRECIATION> 5,391,294
<TOTAL-ASSETS> 18,288,177
<CURRENT-LIABILITIES> 494,407
<BONDS> 983,690
<COMMON> 0
0
0
<OTHER-SE> 16,810,080
<TOTAL-LIABILITY-AND-EQUITY> 18,288,177
<SALES> 0
<TOTAL-REVENUES> 4,094,504
<CGS> 0
<TOTAL-COSTS> 2,775,690
<OTHER-EXPENSES> 553,071
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 47,402
<INCOME-PRETAX> 718,341
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 718,341
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
