SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549-1004
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 1995
Commission File Number 0-16415
CUMBERLAND HEALTHCARE, L.P. I-A
(Exact name of Registrant as specified in its Charter)
Delaware 59-2660778
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
880 Carillon Parkway, St. Petersburg, Florida 33716
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (813) 573-3800
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 and Exchange Act of 1934
during the preceding 12 months (or 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
Number of shares outstanding of each of Registrant's classes of securities:
Number of Units at
Title of Each Class March 31, 1995
Units of Limited Partnership
Interest: $1,000 per unit 30,000
DOCUMENTS INCORPORATED BY REFERENCE
Parts I and II, 1994 Form 10-K, filed with the
Securities and Exchange Commission on April 12, 1995,
Parts III and IV - Form S-11 Registration Statement
and all amendments and supplements thereto
File No. 33-4301
<PAGE>
CUMBERLAND HEALTHCARE, L.P. I-A
(a Limited Partnership)
INDEX TO COMBINED FINANCIAL STATEMENTS
Page Number
Part I. Financial Information
Item 1. Financial Statements
Combined Balance Sheets -
As of March 31, 1995 and December 31, 1994 3
Combined Statements of Operation -
For the Three Months Ended March 31, 1995 and 1994 4
Combined Statements of Cash Flows -
For the Three Months Ended March 31, 1995 and 1994 5
Notes to Combined Financial Statements 6-7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K 9
CUM1A<PAGE>
CUMBERLAND HEALTHCARE, L.P. I-A
(a Limited Partnership)
COMBINED BALANCE SHEETS
March 31, December 31,
1995 1994
ASSETS (Unaudited) (Audited)
Cash and Cash Equivalents $ 1,054,853 $ 1,202,175
Restricted Cash 52,765 52,780
Accounts Receivable (Net of Allowance of
$63,866 and $63,866) 511,357 1,008,629
Prepaid Expenses 54,266 44,683
Deferred Debt Costs (Net of Accumulated
Amortization of $44,106 and $39,247) 102,917 102,777
Intangible Assets (Net of Accumulated
Amortization of $24,964 and $22,190) 418,834 421,608
Investment Properties, at Cost (Net of
Accumulated Depreciation and Amortization 19,318,023 19,471,007
of $11,052,094 and $10,874,938)
Construction in Progress 4,950 0
Total Assets $ 21,517,965 $ 22,303,659
LIABILITIES AND PARTNERS' EQUITY
Liabilities:
Accounts Payable $ 1,161,582 $ 1,067,429
Accrued Payroll 189,093 219,284
Interest Payable - Affiliate 0 6,582
- Other 43,871 33,569
Payable to Related Parties
- General Partner 10,506 26,435
- Affiliates 338,460 312,528
Mortgage Notes Payable
- Affiliate 0 500,000
- Other 8,212,640 8,282,947
Minority Interest 625,999 630,570
Total Liabilities 10,582,151 11,079,344
Partners' Equity:
Limited Partners (30,000 units outstanding
at March 31, 1995, and December 31, 1994) 11,243,179 11,525,910
General Partner (307,365) (301,595)
Total Partners' Equity 10,935,814 11,224,315
Total Liabilities and Partners' Equity $ 21,517,965 $ 22,303,659
CUM1A The accompanying notes are an integral part
of these financial statements<PAGE>
CUMBERLAND HEALTHCARE, L.P. I-A
(a Limited Partnership)
COMBINED STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED
March 31, March 31,
1995 1994
Revenues:
Resident Service Revenues $ 1,319,531 $ 1,161,311
Rental Income 812,436 783,735
Interest Income 16,741 12,134
Total Revenues 2,148,708 1,957,180
Expenses:
Resident Service Expenses 1,161,066 1,048,380
Interest Expense - Affiliate 637 49,019
- Other 203,164 173,978
Rent Expense 75,071 69,688
Property Management Fees - General Partner 10,050 9,704
General and Administrative - Affiliates 13,751 12,556
- Other 27,138 20,972
Depreciation and Amortization 185,597 313,202
Total Expenses 1,676,474 1,697,499
Net Operating Income 472,234 259,681
Minority Interest in Net Loss
of Combined Subsidiary 4,571 29,249
Net Income $ 476,805 $ 288,930
Allocation of Net Income
Limited Partners $ 467,269 $ 283,151
General Partner 9,536 5,779
Net Income $ 476,805 $ 288,930
Net Income Per $1,000 Limited Partnership Unit $ 15.58 $ 9.44
Number of Limited Partnership Units 30,000 30,000
CUM1A The accompanying notes are an integral part
of these financial statements.<PAGE>
CUMBERLAND HEALTHCARE, L.P. I-A
(a Limited Partnership)
COMBINED STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE THREE MONTHS ENDED
March 31, March 31,
1995 1994
Cash Flows from Operating Activities:
Net Income $ 476,805 $ 288,930
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Depreciation and Amortization 185,597 313,202
Minority Interest in Net (Loss)
of Combined Subsidiary (4,571) (29,249)
Changes in Operating Assets and Liabilities:
(Increase) Decrease in Accounts Receivable 497,272 (30,864)
(Increase) Decrease in Prepaid Expenses (9,583) 6,812
(Increase) Decrease in Restricted Cash 15 (1,092)
Increase (Decrease) in Payable to Related
Parties 10,003 31,110
Increase (Decrease) in Payables and Accruals 67,682 7,818
Net Cash Provided by
Operating Activities 1,223,220 586,667
Cash Flows from Investing Activities:
(Additions) to Investment Properties (24,980) (1,134)
(Additions) to Construction in Progress (4,950) (11,006)
Net Cash Provided by (Used in)
Investing Activities (29,930) (12,140)
Cash Flows from Financing Activities:
Payments of Notes Payable (570,307) (2,385,266)
(Increase) Decrease in Deferred Debt Cost (4,999) 0
Distribution to Partners:
Limited Partners (750,000) (450,000)
General Partner (15,306) (9,185)
Net Cash Provided by (Used in)
Financing Activities (1,340,612) (2,844,451)
Increase (Decrease) in Cash and Cash Equivalents (147,322)(2,269,924)
Cash and Cash Equivalents at Beginning of Period 1,202,175 3,011,916
Cash and Cash Equivalents at End of Period $ 1,054,853 $ 741,992
Supplemental Disclosure of Cash Flow Information:
Interest Paid $ 200,081 $ 248,948
CUM1A The accompanying notes are an integral part
of these financial statements.<PAGE>
CUMBERLAND HEALTHCARE, L.P. I-A
(a Limited Partnership)
NOTES TO COMBINED FINANCIAL STATEMENTS
(Unaudited)
MARCH 31, 1995
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES:
Basis of Preparation
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, 1994. In the opinion of management, these 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 period may not be
indicative of results to be expected for the year.
Reclassification
Certain items in the 1994 financial statements have been reclassified for
comparative purposes to conform with the financial statement presentation used
in the 1995 statements.
Combination
The accompanying combined financial statements include the accounts of the
company and all of its subsidiaries. Intercompany transactions and balances
have
been eliminated. Minority interest is accounted for by using the equity method.
NOTE 2 - COMPENSATION, REIMBURSEMENTS, AND ACCRUALS FOR GENERAL PARTNERS AND
AFFILIATES:
The General Partner and affiliates are entitled to the following types of
compensation and reimbursement for costs and expenses incurred for the
Partnership for the three months ended March 31, 1995:
Property Management Fees $ 10,050
General and Administrative
Costs and Fees 13,751
Cash Distributions 15,306
Interest Expense 637
CUM1A<PAGE>
CUMBERLAND HEALTHCARE, L.P. I-A
(a Limited Partnership)
NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
(Unaudited)
MARCH 31, 1995
NOTE 3 - INVESTMENT PROPERTIES
As of March 31, 1995, the Partnership owned, directly or through limited
partnership investments, an interest in eleven nursing home properties.
A summary of the Partnership's investment properties is as follows:
March 31,
1995
Land $ 4,682,743
Buildings 19,606,940
Personal Property 5,230,776
Leasehold Interest 849,658
Investment Properties, at Cost 30,370,117
Less: Accumulated Depreciation
and Amortization (11,052,094)
$ 19,318,023
CUM1A<PAGE>
CUMBERLAND HEALTHCARE, L.P. I-A
(a Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Resident service revenues increased by $158,220 (13.6%) for the three months
ended March 31, 1995, as compared to the same period in 1994. This increase was
primarily due to an increase in census with the opening of the assisted living
units at the Olympic facility. Resident services expenses increased $112,686
(10.7%) for the three months ended March 31, 1995, as compared to the same
period
in 1994. This increase was due to an increase in nursing expenses from the use
of additional ancillary services needed to accommodate the higher resident
census
and acuity level, along with increased labor costs from the operation of the
assisted living units at the Olympic facility.
Rental income increased by $28,701 (3.7%) for the three months ended March
31, 1995, as compared to the same period in 1994. This increase was due to the
annual increase in rental rates per the lease agreements.
Interest expense was reduced by $19,196 (8.6%) for the three months ended
March 31, 1995, as compared to the same period in 1994. This reduction
primarily
resulted from a decreased average level of debt and from reduced interest rates.
Interest income increased $4,607 (38%) for the three months ended March 31,
1995, as compared to the same period in 1994. This increase is due to increased
average cash balances in interest bearing accounts.
Depreciation expense decreased $127,605 (40.7%) for the three months ended
March 31, 1995, as compared to the same period in 1994. This decrease is due to
certain furniture and fixture items reaching their fully depreciated life.
As a result of the above items, the Partnership's net income for the three
months ended March 31, 1995 was $476,805 compared to net income of $288,930 for
the same period in 1994; a 65% increase.
In the opinion of the General Partner, the Partnership has sufficient funds
or sources of funds to meet its expected needs for liquidity. The General
Partner is not aware of any trends that significantly affect the Partnership's
liquidity.
The February 1995 semi-annual distribution to the Limited Partners totaled
$750,000 (2.5%). Future distributions will be at a level that is warranted by
the cash flow and profits of the Partnership. The 1994 distribution to Limited
Partners totaled $1,050,000 (3.5%) while in 1993 it totaled $600,000 (2%).
CUM1A<PAGE>
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits - None.
(b) Reports on Form 8-K - None.
CUM1A<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, this report has been signed by the following persons on
behalf of the Registrant and in the capacities and on the dates indicated.
CUMBERLAND HEALTHCARE, L.P. I-A
By: Medical Investments Partners
By: RJ Health Properties, Inc.
Managing General Partner
Date: May 31, 1995 By: /s/ Fred E. Whaley
President and Director
Date: May 31, 1995 By: /s/ J. Davenport Mosby, III
Vice President and Director
CUM1A<PAGE>
