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FORM 10-Q--QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
UNITED STATES
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 period ended June 30, 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: 33-3955-A
MOORE'S LANE PROPERTIES, LTD.
(Exact name of Registrant as specified in its
charter)
Tennessee 62-1271931
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification)
One Belle Meade Place, 4400 Harding Road, Suite 500,
Nashville, Tennessee 37205
(Address of principal executive office) (Zip Code)
(615) 292-1040
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year,
if changed since last report.)
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 at least the past 90 days.
YES X NO ___ <PAGE>
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PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
MOORE'S LANE PROPERTIES, LTD.
(A Tennessee Limited Partnership)
FINANCIAL STATEMENTS
For the Three and Six Months Ended June 30, 1998 and 1997
INDEX
Financial Statements:
Consolidated Balance Sheets 3
Consolidated Statements of Operations 4
Consolidated Statements of Cash Flows 5
Notes to Consolidated Financial Statements 6
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<TABLE>
MOORE'S LANE PROPERTIES, LTD.
(A Limited Partnership)
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<CAPTION>
June 30, December 31,
1998 1997
-------- ------------
<S> <C> <C>
ASSETS
CASH $990,862 $192,693
RESTRICTED CASH 635,556 742,843
ACCOUNTS RECEIVABLE 403,307 -
LAND HELD FOR INVESTMENT 1,399,135 1,692,659
OTHER ASSETS 1,000 1,000
Total Assets $ 3,429,860 $ 2,629,195
=========== ============
LIABILITIES AND PARTNERS' EQUITY
ACCOUNTS PAYABLE &
ACCRUED EXPENSES $ 100,000 $ 47,832
MINORITY INTEREST IN JOINT VENTURE 100 100
PARTNERS' EQUITY:
Limited Partners (7,500 units
outstanding) 2,397,795 2,397,794
General Partners 11,438 3,953
Special Limited Partners 920,527 179,516
Total partners equity 3,329,760 2,581,263
Total Liabilities &
Partners' Equity $3,429,860 $ 2,629,195
========== ==========
<FN>
See notes to consolidated financial statements.
/TABLE
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<TABLE>
MOORE'S LANE PROPERTIES, LTD.
(A Limited Partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Quarter to Date Year to Date
Ending June 30,
----------------
1998 1997 1998 1997
<S> <C> <C> <C> <C>
REVENUE:
Land Sales
Sale Proceeds $1,423,096 - $1,423,096 $426,650
Cost of Land Sold (469,443) - (469,443) (194,964)
Selling Expenses (130,804) - (130,804) (53,825)
Gain on land sales 822,849 - 822,849 177,861
Interest Income 1,003 2,038 10,710 3,342
Miscellaneous 100 33 100 33
Total Revenue $ 823,952 2,071 833,659 181,236
EXPENSES:
Insurance $ 450 - 450 -
Property Taxes 52,929 - 52,929 9,935
Interest Expense - 8,267 - 8,267
Management Fees 3,901 3,901 7,802 7,802
Legal &
Accounting Fees 7,353 13,380 18,403 26,460
General & Admin.
Expenses 1,475 777 5,578 2,339
Loan closing expense - 6,105 - 7,420
Total Expenses $ 66,108 $32,430 $85,162 $62,223
NET INCOME (LOSS) $ 757,844 $(30,359) $748,497 $119,013
<FN>
See notes to consolidated financial statements
/TABLE
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<TABLE>
MOORE'S LANE PROPERTIES, LTD.
(A Limited Partnership)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Year-to-date
June 30,
1998 1997
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income $748,497 $119,013
Adjustments to reconcile
Net Income to Net Cash provided
(used) in Operating Activities:
Decrease (increase) in
Restricted Cash 107,287 (426,375)
Increase in accounts receivable (403,307) -
Cost of Land & Improvements Sold 469,443 194,964
Cost of Land & Improvements (175,919) (216,641)
Increase in Accounts Payable
& Accrued Expenses 52,168 32,396
Increase in Accrued
Interest Payable - 6,267
Net Cash provided (used) in
Operating Activities 798,169 (290,376)
Cash Flows from Financing Activities:
Increase in Note Payable - 300,000
Net Cash Used in
Financing Activities - 300,000
Net Increase in Cash 798,169 9,624
CASH AT JANUARY 1, 192,693 26,406
CASH AT June 30, $ 990,862 $ 36,030
======== =========
<FN>
See notes to consolidated financial statements.
/TABLE
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MOORE'S LANE PROPERTIES, LTD.
(A Limited Partnership)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the Three and Six Months Ended June 30, 1998 and 1997
(Unaudited)
A.ACCOUNTING POLICIES
The unaudited financial statements presented herein have been
prepared in accordance with the instructions to Form 10-Q and
do not include all of the information and note disclosures
required by generally accepted accounting principles. These
statements should be read in conjunction with the financial
statements and notes thereto included in the Partnership's Form
10-K for the year ended December 31, 1997. In the opinion of
management, such financial statements include all adjustments,
consisting only of normal recurring adjustments, necessary to
summarize fairly the Partnership's financial position and
results of operations. The results of operations for the six
month period ended June 30,1998 may not be indicative of the
results that may be expected for the year ending December 31,
1998.
B.RELATED PARTY TRANSACTIONS
The General Partner and its affiliates have been actively
involved in managing the Partnership's operations. Compensation
earned for these services in the first six months were as
follows:
<TABLE>
<CAPTION>
1998 1997
---- ----
<S> <C> <C>
Management Fees $7,802 $ 7,802
Accounting Fees 3,103 1,550
/TABLE
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MOORE'S LANE PROPERTIES, LTD.
(A Limited Partnership)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the Three and Six Months Ended June 30, 1998 and 1997
(Unaudited)
C. COMPREHENSIVE INCOME
Effective January 1, 1998, the Partnership adopted Statement of
Financial Accounting Standards (SFAS) No. 130, Reporting
Comprehensive Income. SFAS No. 130 establishes standards for
reporting and display of comprehensive income and its components in
a full set of general-purpose financial statements and requires
that all components of comprehensive income be reported in a
financial statement that is displayed with the same prominence as
other financial statements. Comprehensive income is defined as the
change in equity of a business enterprise, during a period,
associated with transactions and other events and circumstances
from non-owner sources. It includes all changes in equity during
a period except those resulting from investments by owners and
distributions to owners. During the three and six month periods
ended June 30, 1998, and 1997, the Partnership had no components of
comprehensive income. Accordingly, comprehensive income for each
of the periods was the same as net income (loss).
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Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
During the second quarter of 1998, the Registrant had several
sales. Approximately 4.1 acres were sold for net proceeds of
approximately $1.3 million. In July 1998, approximately 4.3
additional acres were sold for gross proceeds of $ 1.475 million.
The combined proceeds were used to make a $2 million cash
distribution to the partners and the remaining proceeds were
reserved to cover development costs related to the sale. As of
July 31, 1998, the Registrant had 20.8 acres remaining to sell.
Operations of the Registrant are comparable with prior quarters
except for the following. The 1998 property tax expense is for
rollback taxes related to the land sale. The Registrant was
required to pay rollback property taxes on the property sold in
1998. The City and County collect rollback taxes when certain land
zoned agricultural is sold. The tax is equal to approximately 3
years taxes at a commercial rate. Certain other parcels of the
Registrant's property will be subject to this rollback tax when
sold.
The decrease in interest expense is due to the Note payable which
the Registrant borrowed in April 1997 and retired in full in the
fourth quarter the same year. The Registrant had no interest
bearing liabilities in 1998.
The 1997 loan closing costs were associated with obtaining the note
payable and are one-time only expenses. Because of the short loan
period (one year), these costs were expensed and not capitalized.
The General Partner continues to monitor the impact of year 2000
issues on our computer systems and applications and has developed
a remediation plan. We expect the cost of upgrading computers and
software to be immaterial to the Registrant.
FINANCIAL CONDITION
LIQUIDITY
As of July 31, 1998, the Registrant had an operating cash
balance of $ 164,856 that the General Partner believes will
sufficiently cover operating expenses for the next year, and an
escrow cash balance of $635,556 to be used on development.
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PART II. OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule
(b) No 8-K's have been filed during this quarter.
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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.
MOORE'S LANE PROPERTIES, LTD.
By: 222 PARTNERS, INC.
General Partner
Date:August 14, 1998 By:/s/ Steven D. Ezell
President
Date:August 14, 1998 By:/s/ Michael A. Hartley
Secretary/Treasurer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1998
<CASH> 990,862
<SECURITIES> 0
<RECEIVABLES> 403,307
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 403,307
<PP&E> 1,399,134
<DEPRECIATION> 0
<TOTAL-ASSETS> 3,429,859
<CURRENT-LIABILITIES> 100,000
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 3,329,759
<TOTAL-LIABILITY-AND-EQUITY> 3,429,859
<SALES> 1,423,096
<TOTAL-REVENUES> 833,659
<CGS> 469,443
<TOTAL-COSTS> 600,247
<OTHER-EXPENSES> 85,162
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 748,497
<INCOME-TAX> 0
<INCOME-CONTINUING> 748,497
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 748,497
<EPS-PRIMARY> 99.80
<EPS-DILUTED> 99.80
</TABLE>
