August 14, 1996
SECURITIES AND EXCHANGE COMMISSION
450 5th Street, N.W.
Judiciary Plaza
Washington, D.C. 20549-1004
Re: Capital Senior Living Communities, L.P. (the "Company")
Form 10-QSB for the Quarter Ended June 30, 1996
Commission File No. 0-14752
Our File No.: 3101529.270
Ladies and Gentlemen:
On behalf of the Company, enclosed for electronic filing please find one
copy of Form 10-QSB for the quarter ended June 30, 1996.
Please call the undersigned with any questions or comments. Collect calls
will be accepted at 214/419-8311.
Yours truly,
/s/ Mike Parsons
---------------------
Mike Parsons
MDP/Ids
Enclosures
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
(Mark One)
{X} Quarterly Report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 For the quarterly period ended June 30, 1996
{ } Transition report under Section 13 or 15(d) of the Exchange Act for
the transition period From to
Commission file number 0-14752.
CAPITAL SENIOR LIVING COMMUNITIES, L.P.
(Exact name of Small Business Issuer as Specified in Its Charter)
DELAWARE 35-1665759
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
14160 Dallas Parkway, Suite 300, Dallas, Texas 75240
(Address of Principal Executive Offices)
(214) 770-5600
(Issuer's Telephone Number, Including Area Code)
Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
--- ----
1
<PAGE>
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
CAPITAL SENIOR LIVING COMMUNITIES, L.P.
---------------------------------------
CONSOLIDATED BALANCE SHEET
--------------------------
AS OF JUNE 30, 1996 AND DECEMBER 31, 1995
-----------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
June 30,1996 Dec.31,1995
(Unaudited) (Audited)
----------- ---------
ASSET
PROPERTY AND EQUIPMENT, Net $ 16,800,108 $ 17,352,655
OTHER ASSETS:
Cash and cash equivalents 8,759,900 9,743,330
Cash, restricted 203,788 203,788
Accounts receivable, net of allowance
for doubtful accounts of $159,035 and
$141,452, respectively 315,923 409,486
Prepaid expenses and other 135,623 128,728
Deferred charges, less accumulated amortization
of $222,332 and $141,760, respectively 268,445 328,665
Investment in limited partnerships (Note 4) 6,844,326 896,405
-------------- --------------
Total assets $ 33,328,113 $ 29,063,057
============== ==============
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Accrued expenses and other liabilities $ 1,568,961 $ 1,354,639
Notes payable 2,010,166 2,035,148
Customer deposits 295,157 279,982
-------------- --------------
Total liabilities 3,874,284 3,669,769
--------------- ----------------
DEFERRED INCOME (Note 4) 2,915,173 0
PARTNERS' CAPITAL:
General partner 57,398 41469
Limited partner 1 1
Beneficial unit certificates, 1,264,000
issued 26,481,257 25,351,818
-------------- --------------
25,393,288
Total partners' capital 26,538,656
Total liabilities and partners' capital $ 33,328,113 $ 29,063,057
============== ==============
</TABLE>
2
<PAGE>
CAPITAL SENIOR LIVING COMMUNITIES, L.P.
---------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
-------------------------------------
FOR THE THREE MONTHS ENDED JUNE 30, 1996 AND 1995
-------------------------------------------------
(UNAUDITED)
-----------
<TABLE>
<CAPTION>
<S> <C> <C>
Three Months ended June 30,
---------------------------
1996 1995
RENTAL AND OTHER INCOME
Multi-family $ 323,838 $ 344,063
Independent 1,811,293 1,721,038
Assisted Living 398,072 421,477
Nursing 1,222,782 1,258,099
Other 221,555 213,585
-------------- --------------
3,977,540 3,958,262
INTEREST INCOME 98,741 74,542
INCOME ON INVESTMENT 433,520 0
-------------- --------------
Total income 4,509,801 4,032,804
-------------- --------------
EXPENSES:
Salaries, wages and benefits 1,433,670 1,432,866
Operating and other administrative expenses 1,635,091 1,576,127
Depreciation and amortization 410,853 440,561
-------------- --------------
Total expenses 3,479,614 3,449,554
-------------- --------------
NET INCOME $ 1,030,187 $ 583,250
============== ==============
NET INCOME ALLOCATION:
General partner $ 10,302 $ 5,833
Beneficial unit certificate holders 1,019,885 577,417
-------------- --------------
Total $ 1,030,187 $ 583,250
============== ==============
NET INCOME PER BENEFICIAL UNIT
CERTIFICATE $ .83 $ .46
============== ==============
OUTSTANDING BENEFICIAL UNIT
CERTIFICATES 1,226,708 1,264,000
============== ==============
</TABLE>
3
<PAGE>
CAPITAL SENIOR LIVING COMMUNITIES, L.P.
---------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
-------------------------------------
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
-----------------------------------------------
(UNAUDITED)
-----------
<TABLE>
<CAPTION>
<S> <C> <C>
Six Months ended June 30,
-------------------------
1996 1995
---- ----
RENTAL AND OTHER INCOME
Multi-family $ 647,588 $ 627,053
Independent 3,607,723 3,488,240
Assisted Living 804,820 848,436
Nursing 2,433,406 2,349,882
Other 438,044 433,359
--------------- --------------
7,931,581 7,746,970
INTEREST INCOME 204,539 140,150
INCOME ON INVESTMENT 459,043 0
--------------- --------------
Total income 8,595,163 7,887,120
--------------- --------------
EXPENSES:
Salaries, wages and benefits 2,889,453 2,876,343
Operating and other administrative expenses 3,294,524 3,119,002
Depreciation and amortization 818,314 881,122
--------------- --------------
Total expenses 7,002,291 6,876,467
--------------- --------------
NET INCOME $ 1,592,872 $ 1,010,653
=============== ==============
NET INCOME ALLOCATION:
General partner $ 15,929 $ 10,107
Beneficial unit certificate holders 1,576,943 1,000,546
--------------- --------------
Total $ 1,592,872 $ 1,010,653
=============== ==============
NET INCOME PER BENEFICIAL UNIT
CERTIFICATE $ 1.29 $ .79
=============== ==============
OUTSTANDING BENEFICIAL
UNIT CERTIFICATES 1,226,708 1,264,000
=============== ==============
</TABLE>
4
<PAGE>
CAPITAL SENIOR LIVING COMMUNITIES, L.P.
---------------------------------------
CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL
--------------------------------------------
FOR THE SIX MONTHS ENDED JUNE 30, 1996
--------------------------------------
(UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Beneficial
Unit Limited General
Certificates Partner Partner Total
------------ ------- ------- -----
BALANCE, December 31, 1995 $ 25,351,818 $ 1 $ 141,469 $ 25,393,288
Net Income 557,058 - 5,627 562,685
------------ ----------- ------------- ----------------
BALANCE, March 31, 1996 $ 25,908,876 $ 1 $ 47,096 $ 25,955,973
Net Income 1,019,885 - 10,302 1,030,187
Repurchased Beneficial Unit
Certificates (447,504) - - (447,504)
---------------- ------------- ------------- ----------------
BALANCE, June 30, 1996 $ 26,481,257 $ 1 $ 57,398 $ 26,538,656
================ ============= ============= ================
</TABLE>
5
<PAGE>
CAPITAL SENIOR LIVING COMMUNITIES, L.P.
---------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
-----------------------------------------------
(UNAUDITED)
-----------
<TABLE>
<CAPTION>
<S> <C> <C>
For the Six Months
Ended June 30,
--------------
1996 1995
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,592,872 $ 1,010,653
Adjustments to reconcile net income
to net cash provided by (used in) operating activities:
Depreciation 737,742 847,162
Amortization of deferred financing charges 80,572 33,960
Provision for bad debt 16,500 0
Amortization of deferred income (35,011) 0
Equity in earnings of investee (398,508) 0
Changes in assets and liabilities, net of effects of acquisitions:
Cash, restricted 0 (150,000)
Accounts receivable 77,063 (202,741)
Prepaid expenses and other (6,895) (43,095)
Accrued expenses and other liabilities 214,322 (117,885)
Customer Deposits 15,175 25,485
-------------- --------------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 2,293,832 1,403,539
-------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment (185,195) (122,301)
Investments in limited partnerships (2,599,229) (511,671)
Repurchase of beneficial unit certificates (447,504) 0
-------------- --------------
NET CASH USED IN
INVESTING ACTIVITIES (3,231,928) (633,972)
-------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on notes payable (24,982) (34,910)
Deferred charges (20,352) 0
-------------- --------------
NET CASH USED IN
FINANCING ACTIVITIES (45,334) (34,910)
-------------- --------------
NET (DECREASE) INCREASE IN CASH AND
CASH EQUIVALENTS (983,430) 734,657
CASH AND CASH EQUIVALENTS, Beginning of Period 9,743,330 8,018,471
-------------- --------------
CASH AND CASH EQUIVALENTS, End of Period $ 8,759,900 $ 8,753,128
============== ==============
</TABLE>
6
<PAGE>
CAPITAL SENIOR LIVING COMMUNITIES, L.P.
---------------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
JUNE 30, 1996
-------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
-------------------------------------------
Principals of Consolidation
- - ---------------------------
The accompanying consolidated balance sheet, as of June 30, 1996, includes the
accounts of the Partnership and its 99%-owned subsidiary, Retirement
Partnership, Ltd. All significant intercompany accounts and transactions have
been eliminated in consolidation. The 1% minority interest in Retirement
Partnership, Ltd. is not presented separately due to its immateriality.
The financial information has been prepared in accordance with the Partnership's
customary accounting practices and has not been audited. In the opinion of
management, the information presented reflects all adjustments necessary for a
fair statement of interim results. All such adjustments are of a normal and
recurring nature. The financial statements should be read in conjunction with
the consolidated financial statements and the footnotes thereto included in the
Partnership's annual report filed in Form 10-KSB for the year ended December 31,
1995.
Property and Equipment
- - ----------------------
The Partnership provides for depreciation and amortization on property and
equipment using the straight-line method by charges to operations in amounts to
allocate the cost of the property and equipment over their estimated useful
lives.
The carrying value of property and equipment is reviewed if the facts and
circumstances suggest that it may be impaired. As of June 30, 1996, no reserve
for impaired value has been provided.
Cash Equivalents
- - ----------------
The Partnership considers investments with original maturities of three months
or less to be cash equivalents.
Revenue Recognition
- - -------------------
Revenue from the four retirement living communities and the two multifamily
apartment complexes is recognized in the period in which the unit rental and/or
food services relate.
Revenue from the two Projects (Towne Centre and Canton Regency) which offer
assisted living, intermediate, and skilled health care (in addition to
retirement living), is recognized as services are performed. The Towne Centre
health care center (the "Center") is a provider of services under the Indiana
Medicaid program. Accordingly, the Center is entitled to reimbursement under the
foregoing program at rates which are lower than private pay rates. Patient
service revenue for Medicaid patients is recorded at the reimbursement rates.
The Towne Centre and Canton Regency health care centers (the "Centers") are also
providers of services under the Medicare program.
7
<PAGE>
The Centers are entitled to reimbursement under the foregoing program in amounts
which approximate the lower of cost or charges for caring for these patients.
During the period, the Centers received payments from this program on an
estimated basis. Any differences between estimated and actual reimbursements are
recognized in the subsequent year.
2. COMMITMENTS AND CONTINGENCIES:
------------------------------
The Partnership had $53,788 in certificates of deposit at June 30, 1996 and
December 31, 1995, restricted for utility deposits. The certificates of deposit
mature one year from the original purchase date.
In conjunction with the Partnership's increased mortgage loan commitment on June
30, 1995 (see LIQUIDITY AND CAPITAL RESOURCES), a compensating balance of
$150,000 was established with the mortgage company.
3. TRANSACTIONS WITH RELATED PARTIES:
- - -------------------------------------
In accordance with the Partnership Agreement, the general partner, Retirement
Living Communities, L.P. ("RLC"), does not receive any fees from the Partnership
but may be reimbursed by the Partnership for any actual costs and expenses
incurred in connection with the operations of the Partnership. In addition, an
affiliate of RLC is managing the assets of the Partnership. Partnership expenses
incurred by RLC and affiliates, which were expensed by the Partnership for the
second fiscal quarter ended June 30, 1996 and 1995, were approximately $106,644
and $101,573, respectively. Management fees reimbursed and expensed by the
Partnership to RLC and affiliates for the second fiscal quarter ended June 30,
1996 and 1995, were approximately $251,269 and $250,950, respectively.
In addition, the Partnership has no employees. An affiliate of RLC makes gross
payroll deposits and health insurance premium payments on behalf of the
properties owned by the Partnership, which are reimbursed by the Partnership,
and is required to fund any excess health insurance claims not covered by the
Partnership's health premiums or related insurance policy. Reimbursed gross
payroll deposits and health insurance premiums, which were expensed by the
Partnership during the second fiscal quarter of 1996 and 1995, were
approximately $1,332,467 and $1,313,622, respectively.
In connection with the extension of the Silver Lakes mortgage, an affiliate of
RLC received a 1% financing fee of $20,352 in the first quarter of 1996.
In May 1995, the Partnership contracted with Quality Home Care, Inc., an
affiliate of RLC, to provide nursing services to the assisted living residents
at The Harrison facility. The contract was executed to comply with certain state
regulations. As part of the contract, the Partnership has transferred its share
of assisted living revenues and expenses for The Harrison to Quality Home Care,
Inc. resulting in an approximate decrease of $63,000 in net annualized profits.
In addition, a 50% partner of RLC is chairman of the board of a bank where the
Partnership holds the majority of its operating cash accounts.
The general partner and managing agent of Healthcare Properties, L.P. and NHP
Retirement Housing Partners I LP are affiliates of RLC. See Note 4.
In April 1996, an affiliate of RLC recognized an $878,592 gain on the
Partnership's purchase of Healthcare Properties, L.P. limited partnership
interests (see Note 4-ACQUISITION OF INVESTMENTS).
<PAGE>
4. ACQUISITION OF INVESTMENTS
--------------------------
During 1995, the Partnership made various purchases of limited partnership
interests in Healthcare Properties, L.P. As of December 31, 1995, the
Partnership had cumulatively paid $308,825 for a 5.8% ownership in Healthcare
Properties, L.P. During the first quarter of 1996, the Partnership purchased
additional limited partnership interests in Healthcare Properties, L.P. for
$607,170, and during the second quarter of 1996, the Partnership purchased
additional limited partnership interests for $1,963,845, bringing the
Partnership's total interest in Healthcare Properties, L.P. to 26.0%. Healthcare
Properties, L.P. is a portfolio comprised of 8 nursing home facilities.
Of the additional 14.91% in limited partnership interests in Healthcare
Properties, L.P. purchased in the second quarter of 1996, 9.36% was purchased
from Capital Realty Group Senior Housing, Inc. (CRGSH), an affiliate of RLC, who
had acquired the interests in 19**. The Partnership paid $1,269,077 to such
affiliate, who recognized a $878,592 gain on the transaction. Because of this
purchase, the Partnership will change its method of accounting for its
investment in Healthcare Properties, L.P. from the cost method to the equity
method of accounting. Through June 30, 1996, this change in accounting has
resulted in recognizing $2,986,000 of equity in Healthcare Properties, L.P. over
the Partnership's cost as deferred income, of which $35,817 relates to 1995 and
first quarter 1996 net investment earnings from Healthcare Properties, L.P. and
the balance of $2,950,183 to be amortized over 20 years.
During 1995, the Partnership made various purchases of outstanding pension notes
of NHP Retirement Housing Partners I, L.P. As of December 31, 1995, the
Partnership had cumulatively paid $587,580 for a 3.25% ownership of outstanding
pension notes of NHP Retirement Housing Partners I, L.P. During the first
quarter of 1996, the Partnership purchased pension notes for $17,640. During the
second quarter of 1996, the Partnership purchased additional pension notes for
$9,720, bringing the Partnership's total interest in NHP Retirement Housing
Partners I, L.P. pension notes to 3.4%. NHP Retirement Housing Partners I, L.P.
owns a portfolio of 5 independent living retirement facilities. The pension
notes bear simple interest at 13% annum. Interest of 7% is paid quarterly, with
the remaining 6% interest deferred. Deferred interest and principal matures on
December 31, 2001. During the first quarter of 1996, the Partnership paid $855
for a 1.87% ownership of limited partnership interests in NHP Retirement Housing
Partners I, L.P.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
This discussion should be read in conjunction with the financial statements of
Capital Senior Living Communities, L.P. (the "Partnership") included in this
Report.
As of June 30, 1996, the Partnership's assets included four retirement projects
(Harrison, Cottonwood Village, Canton Regency, and Towne Centre), a multi-family
apartment project (Lakeridge Apartments, formerly known as Village Green II
Apartments), a 12% interest in Encore Limited Partnership, and a 99% interest in
Retirement Partnership, Ltd. (the "Partnership Subsidiary"), which owns a
multi-family apartment project (Silver Lakes Apartments, formerly known as
Village Green I Apartments).
Silver Lakes Apartments is pledged as collateral to secure repayment of a
$2,010,166 mortgage loan payable to a nonaffiliated mortgage company. The
Partnership has a 6 month extension on the loan through December 31, 1996.
8
<PAGE>
RESULTS OF OPERATIONS
- - ---------------------
The Partnership's primary source of funds is net rental income from the
ownership and management of the six real estate projects owned by the
Partnership.
SECOND QUARTER OF 1996 COMPARED WITH SECOND QUARTER OF 1995
- - -----------------------------------------------------------
Rental and other income for the three months ended June 30, 1996 and 1995 was
$3,977,540 and $3,958,262, respectively. Rental and other income increased 0.5%
from the second quarter 1995 to 1996, and was primarily attributable to higher
rents. Interest income for the second fiscal quarter ended June 30, 1996 and
1995, was $98,741 and $74,542, respectively. Interest income increased $24,199
from the second quarter ended 1995 to the second quarter ended 1996 due to
additional cash available for investment. During the three months ended June 30,
1996, the Partnership recognized $433,520 of equity participation and
amortization of deferred income relating to the Partnership's investment in
Healthcare Properties, L.P. Operating expenses are maintained by property and by
natural expense classification, but are not allocated by revenue type. Salaries,
wages, and benefits of $1,433,670 were paid by the Partnership for the second
fiscal quarter of 1996. Approximately $1,332,467 of such amount was paid to
Capital Senior Living, Inc. (CSL), an affiliate of RLC, as reimbursement for
their direct out-of-pocket costs under the property management agreements for
salaries, wages, and benefits of on-site employees employed at the properties,
with the remainder being contract labor and reimbursement to CSL for an
allocable portion of its home office employees' salaries and wages for time
expended on matters attributable to the properties. Corresponding payments of
salaries and wages for the second fiscal quarter of 1995 was $1,432,866 (with
approximately $1,313,622 paid to CSL). Operating and other administrative
expenses increased from $1,576,127 in 1995 to $1,635,091 in 1996, or 3.7%, and
was mainly attributable to an increase in utilities and therapy costs.
Depreciation and amortization for 1996 was approximately $410,853 and $440,561
in 1995, resulting in a decrease of 6.7% from 1995 to 1996, and was primarily
due to certain assets being fully depreciated in 1995.
The Partnership expects its future operating results will depend in large part
on its operating costs and occupancy levels in its facilities. If the operating
costs increase or occupancy levels decline, the Partnership's operating results
will be adversely affected.
FIRST SIX MONTHS OF 1996 COMPARED WITH FIRST SIX MONTHS OF 1995
- - ---------------------------------------------------------------
Rental and other income for the six months ended June 30, 1996 and 1995 was
$7,931,581 and $7,746,970, respectively. Rental and other income increased 2.4%
from the six months ended June 30, 1995 to 1996, and was primarily attributable
to higher rents. Interest income for the six months ended June 30, 1996 and
1995, was $204,539 and $140,150, respectively. Interest income increased $64,389
from the six months ended June 30, 1995 to 1996 due to additional cash available
for investment. During the six months ended June 30, 1996, income on investment
of $459,043 was recognized, of which $25,523 was received from the Partnership's
investment in Encore Limited Partnership and $433,520 recognized on equity
participation and amortization of deferred income relating to the Partnership's
investment in Healthcare Properties, L.P. Operating expenses are maintained by
property and by natural expense classification, but are not allocated by revenue
type. Salaries, wages, and benefits of $2,889,453 were paid by the Partnership
for the six months ended June 30, 1996. Approximately $2,692,041 of such amount
was paid to CSL and CRGSH, an affiliate of RLC, as reimbursement for their
direct out-of-pocket costs under the property management agreements for
salaries, wages, and benefits of on-site employees employed at the properties,
with the remainder being contract labor and reimbursement for an allocable
portion of its home office employees' salaries and
9
<PAGE>
wages for time expended on matters attributable to the properties.
Corresponding payments of salaries and wages for the six months ended June 30,
1995 was $2,876,343 (with approximately $2,647,948 paid to CSL and CRGSH).
The increase in such payments of 0.5% from 1995 to 1996 was attributable to
increased labor costs. Operating and other administrative expenses increased
from $3,119,002 in 1995 to $3,294,524 in 1996,or 5.6%, and was mainly
attributable to an increase in utility, therapy and repair and maintenance
costs. Depreciation and amortization for 1996 was $818,314 and $881,122 in
1995. The decrease in depreciation and amortization expense of 7.1% from
1995 to 1996 was due to certain assets being fully depreciated in 1995.
The Partnership expects its future operating results will depend in large part
on its operating costs and occupancy levels in its facilities. If the operating
costs increase or occupancy levels decline, the Partnership's operating results
will be adversely affected.
LIQUIDITY AND CAPITAL RESOURCES
- - -------------------------------
The General Partner believes cash and cash equivalents of $8,759,900 at June 30,
1996 is adequate for the working capital needs of the Partnership. These
reserves will be used to support ongoing working capital needs, pay existing
debt obligations, meet the capital and marketing improvements necessary to
succeed in a competitive atmosphere, and fund future acquisitions or development
of real estate projects.
The Partnership's business is no longer the ownership of tax-exempt bonds.
Instead, the Partnership will hold and operate real properties. This will
adversely impact the tax-exempt nature of the Partnership's operations in that
it will cause the operations of the Partnership to be fully taxable for federal
income tax purposes and will require the individual BUC holders to report their
respective shares of any taxable income of the Partnership. Moreover, as a
result of federal tax law changes in 1986, BUC holders will not be able to use
losses from any other source, other than "passive activity" losses, to offset
their share of the Partnership's taxable income.
On July 29, 1994, the Partnership obtained a $12,000,000 open end mortgage loan
from a non-affiliated mortgage company, and pledged the Cottonwood, Harrison,
Towne Centre and Canton Regency Retirement Community as collateral. On June 30,
1995, the Partnership increased its mortgage loan commitment from $12,000,000 to
$17,500,000. As of June 30, 1996, there have been no advances made to the
Partnership on this loan. The loan expires July 29, 1998.
The management of the Partnership believes that through improved management of
the properties' operations, the liquidity of the Partnership and the return on
the BUC holder's investment will be maximized. Potential additional sources of
liquidity could include new mortgage financings on one or more of the existing
unencumbered facilities and a potential sale of one or more of the existing
facilities.
10
<PAGE>
<TABLE>
<CAPTION>
PARTNERSHIP PROPERTIES
- - ----------------------
The following table sets forth summary information concerning the six
income-producing real properties owned by the Partnership:
<S> <C> <C> <C>
Number of Units At Occupancy
Project Name/Location June 30, 1996 06/30/95 06/30/96
--------------------- -------------- -------- --------
Cottonwood Retirement 65 - residential 100% 94%
Community,
Cottonwood, Arizona
The Harrison Retirement 124 - residential 92% 84%
Community
Indianapolis, Indiana
Towne Centre Retirement 147 - residential 96% 94%
Community 34 - assisted living
Merrillville, Indiana 64 - nursing
Canton Regency Retirement 147 - residential 93% 97%
Community 34 - assisted living
Canton, Ohio 50 - nursing
Lakeridge Apartments 138 - residential 85% 91%
Kissimmee, Florida
Silver Lakes Apartments 132 - residential 94% 94%
Kissimmee, Florida
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
No reports on Form 8-K have been filed by the registrant during the quarter
ended June 30, 1996.
</TABLE>
11
<PAGE>
SIGNATURES
Pursuant to the requirements of the Exchange Act, the registrant caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.
CAPITAL SENIOR LIVING COMMUNITIES, L.P.
By: RETIREMENT LIVING COMMUNITIES, L.P.
General Partner
By: CAPITAL RETIREMENT GROUP, INC.
General Partner
Date: August 14 , 1996 By: s/Keith Johannessen
- - ---------------------- --- -------------------
Keith Johannessen
President
12
<PAGE>
[ARTICLE] 5
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] DEC-31-1996
[PERIOD-START] JAN-01-1996
[PERIOD-END] JUN-30-1996
[CASH] 8,963,688
[SECURITIES] 6,844,326
[RECEIVABLES] 474,958
[ALLOWANCES] (159,035)
[INVENTORY] 0
[CURRENT-ASSETS] 0
[PP&E] 24,257,569
[DEPRECIATION] (7,457,461)
[TOTAL-ASSETS] 33,328,113
[CURRENT-LIABILITIES] 0
[BONDS] 0
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[COMMON] 0
[OTHER-SE] 26,538,656
[TOTAL-LIABILITY-AND-EQUITY] 33,328,113
[SALES] 0
[TOTAL-REVENUES] 8595,163
[CGS] 0
[TOTAL-COSTS] 6,889,332
[OTHER-EXPENSES] 0
[LOSS-PROVISION] 0
[INTEREST-EXPENSE] 112,959
[INCOME-PRETAX] 1,592,872
[INCOME-TAX] 0
[INCOME-CONTINUING] 0
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] 0
[EPS-PRIMARY] 0
[EPS-DILUTED] 0
</TABLE>
