<PAGE>
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 March 31, 1998
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 0-15381
PRUDENTIAL-BACHE/WATSON & TAYLOR, LTD.-4
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(Exact name of Registrant as specified in its charter)
Texas 75-2083046
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Seaport Plaza, New York, N.Y. 10292-0128
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 214-3500
N/A
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Former name, former address and former fiscal year, if changed since last report
Indicate by check CK 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 _CK_ No __
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Part I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
PRUDENTIAL-BACHE/WATSON & TAYLOR, LTD.-4
(a limited partnership)
STATEMENTS OF NET ASSETS
(in process of liquidation)
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
<S> <C> <C>
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ASSETS
Cash and cash equivalents $1,094,511 $1,100,303
Property held for sale 300,000 300,000
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Total assets 1,394,511 1,400,303
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LIABILITIES
Estimated liquidation costs 221,175 170,975
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Net assets available to unitholders and general partners $1,173,336 $1,229,328
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Depositary units issued and outstanding 66,555 66,555
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---------- ------------
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</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(in process of liquidation)
(Unaudited)
<TABLE>
<CAPTION>
GENERAL
UNITHOLDERS PARTNERS TOTAL
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
Net assets in liquidation--December 31, 1997 $1,229,328 $ -- $1,229,328
Changes in estimated liquidation values of assets and
liabilities (55,992 ) -- (55,992)
----------- -------- ----------
Net assets in liquidation--March 31, 1998 $1,173,336 $ -- $1,173,336
----------- -------- ----------
----------- -------- ----------
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The accompanying notes are an integral part of these statements.
</TABLE>
2
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PRUDENTIAL-BACHE/WATSON & TAYLOR, LTD.-4
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
(Unaudited)
A. General
These financial statements have been prepared without audit. In the opinion
of Prudential-Bache Properties, Inc. ('Managing General Partner') ('PBP'), the
financial statements for the period ended March 31, 1998 contain all adjustments
necessary to present fairly such information subject to the effects of any
further liquidation accounting adjustments that would have been required had the
current realizable values of assets and the amounts of liabilities been known
when Prudential-Bache/Watson & Taylor, Ltd.-4 (the 'Partnership') first adopted
the liquidation basis of accounting as of October 1, 1996. Prior to October 1,
1996, the books and records of the Partnership were maintained on a going
concern accrual basis of accounting.
Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with generally accepted accounting
principles have been omitted. It is suggested that these financial statements
should be read in conjunction with the financial statements and notes thereto
included in the Partnership's Annual Report on Form 10-K filed with the
Securities and Exchange Commission for the year ended December 31, 1997.
The Partnership continues to own an undeveloped land parcel, Beltline
Central, located in Addison, Texas. On March 25, 1998, the Partnership entered
into an agreement to sell the Beltline Central property to a third party buyer.
The purchase price for the property is approximately $390,000 less certain
closing costs. There can be no assurance as to when or whether a closing on the
property will occur.
B. Related Parties
PBP and its affiliates perform services for the Partnership which include,
but are not limited to: accounting and financial management, transfer and
assignment functions, management of the Partnership's unimproved property,
investor communications, printing and other administrative services. PBP and its
affiliates receive reimbursements for costs incurred in connection with these
services, the amount of which is limited by the provisions of the Partnership
Agreement. Affiliates of Messrs. Watson and Taylor, the individual General
Partners, also perform certain administrative and monitoring functions on behalf
of the Partnership.
In conjunction with the liquidation basis of accounting, the Partnership has
recorded an accrual as of March 31, 1998 for the estimated costs expected to be
incurred to liquidate the Partnership. Included in these estimated liquidation
costs is $126,000 expected to be payable to the General Partners and their
affiliates during the anticipated remaining liquidation period. The actual
charges to be incurred by the Partnership will depend primarily upon the length
of time required to liquidate the Partnership's remaining net assets, and may
differ from the amounts accrued as of March 31, 1998.
Prudential Securities Incorporated, an affiliate of PBP, owns 391 depositary
units at March 31, 1998.
3
<PAGE>
<PAGE>
PRUDENTIAL-BACHE/WATSON & TAYLOR, LTD.-4
(a limited partnership)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
In accordance with the Consent Statement dated September 17, 1996, the
Partnership sold substantially all of its properties in November and December of
1996. The Partnership has retained funds for a contingency reserve and to meet
current and future operating costs until the liquidation of the Partnership
The Partnership continues to own an undeveloped land parcel, Beltline
Central, located in Addison, Texas. On March 25, 1998, the Partnership entered
into an agreement to sell the Beltline Central property to a third party buyer.
The purchase price for the property is approximately $390,000 less certain
closing costs. There can be no assurance as to when or whether a closing on the
property will occur.
The Partnership intends to liquidate in 1998, subject to and assuming the
prior sale of the remaining undeveloped land parcel, and will distribute any
remaining funds at such time. In accordance with the Partnership Agreement, such
distributions to partners will be made based upon each partner's capital account
for Federal income tax purposes. Estimated costs expected to be incurred through
the date of liquidation of the Partnership have been accrued in the accompanying
financial statements.
Results of Operations
As a result of the Partnership adopting the liquidation basis of accounting
in accordance with generally accepted accounting principles as of October 1,
1996, and thus not reporting results of operations thereafter, there is no
management discussion comparing the corresponding 1998 and 1997 periods.
4
<PAGE>
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings--None
Item 2. Changes in Securities--None
Item 3. Defaults Upon Senior Securities--None
Item 4. Submission of Matters to a Vote of Security Holders--None
Item 5. Other Information--None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Description:
4.01 Certificate of Limited Partnership Interest (filed as an exhibit
to Registration Statement on Form S-11 (No. 33-1213) and
incorporated herein by reference)
4.02 Depositary Receipt (filed as an exhibit to Registration
Statement on Form S-11 (No. 33-1213) and incorporated herein
by reference)
10.01 Sales Contract dated March 25, 1998 by and between the
Registrant and Dimex Beltline, LLC, a Texas limited
liability company (incorporated by reference to the
Registrant's Annual Report on Form 10-K for the year
ended December 31, 1997)
27.1 Financial Data Schedule (filed herewith)
(b) Reports on Form 8-K--None
5
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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.
Prudential-Bache/Watson & Taylor, Ltd.-4
By: Prudential-Bache Properties, Inc.
A Delaware corporation,
Managing General Partner
By: /s/ Eugene D. Burak Date: May 15, 1998
----------------------------------------
Eugene D. Burak
Vice President
Chief Accounting Officer for the
Registrant
6
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
The Schedule contains summary financial
information extracted from the financial
statements for P-B Watson & Taylor Ltd.-4
and is qualified in its entirety by reference
to such financial statements
</LEGEND>
<RESTATED>
<CIK> 0000780352
<NAME> P-B Watson & Taylor Ltd.-4
<MULTIPLIER> 1
<FISCAL-YEAR-END> Dec-31-1998
<PERIOD-START> Jan-1-1998
<PERIOD-END> Mar-31-1998
<PERIOD-TYPE> 3-MOS
<CASH> 1,094,511
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,094,511
<PP&E> 300,000
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,394,511
<CURRENT-LIABILITIES> 221,175
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,173,336
<TOTAL-LIABILITY-AND-EQUITY> 1,394,511
<SALES> 0
<TOTAL-REVENUES> 0<F1>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0<F1>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0<F1>
<EPS-PRIMARY> 0<F1>
<EPS-DILUTED> 0
<FN>
<F1>
Registrant adopted the liquidation basis of accounting
on October 1, 1996, and, accordingly, does not reflect
Statement of Operations subsequent to 1996. See Note A
to the financial statements for further details.
</FN>
</TABLE>
