UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
- ------ SECURITIES EXCHANGE ACT OF 1934
For the quarter ended
March 31, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
- ------ SECURITIES EXCHANGE ACT OF 1934
Commission File Number
0-14548
-------
RAL-YIELD EQUITIES II LIMITED PARTNERSHIP
-----------------------------------------
(Exact name of registrant as specified in its charter)
Wisconsin 39-1494302
- ------------------------------- ---------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
20875 Crossroads Circle
Suite 800
Waukesha, Wisconsin 53186
- ------------------------------- ---------------------------
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code (414) 798-0900
--------------
Securities registered pursuant to Section 12(b) of the Act:
None
------
Securities registered pursuant to Section 12(g) of the Act:
LIMITED PARTNERSHIP INTERESTS
-----------------------------
(Title of Class)
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 the past 90 days.
Yes X No
------- -------
RAL-YIELD EQUITIES II
LIMITED PARTNERSHIP
FORM 10-Q
TABLE OF CONTENTS
PAGES
PART I FINANCIAL INFORMATION
Item 1. Financial Statements I-1
Item 2. Management's Discussion and
Analysis of Financial Condition and
Results of Operations I-7
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K (None)
Signatures
<TABLE>
RAL-YIELD EQUITIES II
LIMITED PARTNERSHIP
BALANCE SHEETS
March 31, 1996 and December 31, 1995
<CAPTION>
UNAUDITED AUDITED
MAR 31, DECEMBER 31,
ASSETS 1996 1995
- ------------------------------------- ----------- -----------
<S> <C> <C>
INVESTMENT PROPERTY, less accumulated
depreciation of $1,546,462 in 1996
and $1,503,961 in 1995 $4,107,124 $4,137,023
CASH AND CASH EQUIVALENTS 491,755 796,258
RENT AND OTHER RECEIVABLES 12,591 7,510
DEFERRED CHARGES (net) 8,031 8,406
NOTE RECEIVABLE 241,678 244,865
OTHER ASSETS 3,325 5,155
---------- ----------
TOTAL ASSETS $4,864,504 $5,199,217
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
ACCOUNTS PAYABLE AND ACCRUED EXPENSES $ 96,917 $145,170
TENANT SECURITY DEPOSITS 29,713 29,554
---------- ----------
$126,630 $174,724
LIMITED PARTNERS' CAPITAL 4,686,075 4,974,396
GENERAL PARTNERS' CAPITAL 51,799 50,097
---------- ----------
PARTNERS' CAPITAL 4,737,874 5,024,493
---------- ----------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $4,864,504 $5,199,217
========== ==========
<FN>
The accompanying notes are an integral part of these
statements.
</FN>
</TABLE>
I-1
<TABLE>
RAL-YIELD EQUITIES II
LIMITED PARTNERSHIP
Statement of Operations
For the three months ended March 31, 1996 and 1995
UNAUDITED
<CAPTION>
3 MONTHS 3 MONTHS
ended ended
MAR 30, MAR 30,
1996 1995
-------- --------
<S>
REVENUE: <C> <C>
Rental income $201,293 $194,054
Restaurant sales 207,051 178,483
Interest & other 23,229 19,610
-------- --------
$431,573 $392,147
OPERATING EXPENSES:
Restaurant operating
expenses $156,678 $134,474
Management fees 12,866 10,890
Mobile home park and
administrative exp. 51,979 69,456
Depreciation and
amortization 39,877 39,751
-------- --------
$261,400 $254,571
-------- --------
NET INCOME (LOSS) $170,173 $137,576
======== ========
<FN>
The accompanying notes are an integral part of these statements.
</FN>
</TABLE>
I-2
<TABLE>
RAL-YIELD EQUITIES II
LIMITED PARTNERSHIP
Statements of Changes in Partners' Capital
For the three months ended March 31, 1996 and
for the year ended December 31, 1995
UNAUDITED
<CAPTION>
General Limited
Partners Partners
(1% ownership) (99% ownership) Total
-------------- -------------- -----------
<S> <C> <C> <C>
BALANCE, Jan. 1, 1995 $43,552 $4,968,522 $5,012,074
---------- ----------- -----------
NET INCOME 6,545 647,995 654,540
CASH DISTRIBUTIONS 0 (642,121) (642,121)
---------- ----------- -----------
BALANCE, Dec. 31, 1995 $50,097 $4,974,396 $5,024,493
NET INCOME 1,702 168,471 170,173
CASH DISTRIBUTIONS 0 (456,792) (456,792)
BALANCE, March 31, 1996 $51,799 $4,686,075 $4,737,874
========== =========== ===========
<FN>
The accompanying notes are an integral part of these statements.
</FN>
</TABLE>
I-3
<TABLE>
RAL-YIELD EQUITIES II
LIMITED PARTNERSHIP
Statements of Cash Flows
For the three months ended March 31, 1996 and 1995
UNAUDITED
<CAPTION>
MAR 31, MAR 31,
1996 1995
------------- -------------
<S> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net income (loss) $170,173 $137,576
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and
amortization expense 39,877 39,751
Gain on sale of equipment (1,000) 0
Change in assets and
liabilities:
Rent and Receivables (5,081) (21,165)
Other Assets 1,830 2,527
Accounts payable and
accrued expenses (48,253) (29,966)
Tenants' security
deposits 159 425
----------- -----------
Net Cash provided by
operating activities: $157,705 $129,148
Cash flows from investing
activities:
Proceed from sale of
equipment 1,000 0
Additions to investment
properties (9,603) 0
----------- -----------
Net Cash provided by
(used in) investing
activities (8,603) 0
I-4
Cash flows from financing
activities:
Note Receivable 3,187 2,913
Cash distributions paid (456,792) (151,087)
----------- -----------
Net Cash used in
financing activities ($453,605) ($148,174)
----------- -----------
Net increase (decrease)
in cash (304,503) (19,026)
Cash at beginning of period 796,258 573,155
Cash at end of period $491,755 $554,129
=========== ===========
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
I-5
RAL YIELD EQUITIES II
LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
Pursuant to Rule 10-01(a)(5) of Regulation S-X (17 CFR Part 210)
RAL-Yield Equities II Limited Partnership is omitting its footnote
disclosure. The Registrant has presumed that users of the interim
financial information have read or have access to the audited
financial statements for the preceding fiscal year. The disclosure
is being omitted since it substantially duplicates the disclosure
contained in the most recent annual report to security holders,
Form 10-K for the fiscal year ended December 31, 1995.
In the opinion of management, the unaudited interim financial
statements presented herein reflect all adjustments necessary to a
fair statement of the results for the interim periods presented.
I-6
MANAGEMENT'S DISCUSSIONS AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RAL-YIELD EQUITIES II LIMITED PARTNERSHIP (the "Registrant" or
"Partnership") is a Wisconsin Limited Partnership formed on March
30, 1984, under the Wisconsin Revised Uniform Limited Partnership
Act. The Registrant was organized to acquire real estate including
mobile home communities and other commercial properties. The
Partnership sold $8,301,500 in Limited Partnership Interests
(8,301.5 Interests at $1,000 per unit) from March 30, 1984, through
June 30, 1985. After deducting offering costs, the Partnership had
approximately $6,641,200 with which to make investments in income
producing residential and commercial properties, to pay legal fees
and other costs related to such investments and for working capital
reserves. The Partnership utilized the net offering proceeds to
purchase real property investments.
Liquidity and Capital Resources:
Properties acquired by the Partnership were purchased for cash.
Therefore, liquidity is not reduced by debt service payments.
During the Properties' holding periods, the investment strategy is
to maintain (on the "triple net lease" restaurant properties) and
improve (on Spacious Acres Mobile Home Park) occupancy rates
through the application of professional property management
(including selective capital improvements). The Partnership also
accumulates working capital reserves for normal repairs,
replacements, working capital, and contingencies.
Net cash flow provided by operating activities for the three months
ended March 31 was $157,705 in 1996 and $129,148 in 1995,
primarily from earnings and depreciation, net of increases in
receivables.
As of March 31, 1996, the Partnership had cash and cash equivalents
of approximately $492,000 representing undistributed cash flow,
working capital reserves, repair and improvement reserves, and
tenant security deposits. The Partnership has the following
cash needs for repairs and improvements:
The DNR has approved the Partnership's plan to upgrade the sewage
treatment plant at Spacious Acres Mobile Home Park. The
approximate cost to perform this repair has been estimated at
$100,000. This should not effect the level of cash distributions
to the limited partners due to the large amount of cash reserves on
hand.
The general partners are considering an expansion of Spacious Acres
after work on the sewage treatment plant is complete. No estimates
have been done as to the cost of this expansion, but the expansion
would be funded out of the excess cash on hand and would not effect
current distribution levels.
I-7
A distribution totaling approximately $457,000 was made to the
Limited Partners in February, 1996. This distribution consisted of
a $208,000 cash flow distribution and $249,000 in return of
capital.
The Partnership is not currently experiencing any major tenant
delinquency problems with any of its commercial properties. The
tenant of the property in Racine, Wisconsin was recently notified
for a second time that they are one month behind in their rent.
The total amount owed is $6,753. They continue to pay regularly
and it is hoped that they will catch up entirely in the near
future.
Results of Operations:
Gross rental revenues of $201,293 for the first quarter of 1996
increased 3.7% percent over gross rental revenues of $194,054 for
the first quarter of 1995. This is primarily due to the annual
rent increases at the mobile home park and the effect of the rent
increase at the commercial property in Waterloo, Iowa.
Rental property operating and administrative expenses were $51,979
for the first quarter of 1996 and $69,456 for the first quarter
1995.
Restaurant operations reported net income for the first quarter of
1996 of $44,000 on sales of $208,000. In the first quarter of
1995, restaurant operations reported net income of $36,000 on
sales of $178,000.
Net income for the first quarter of 1996 was $170,000 compared to
net income of $138,000 for the first quarter of 1995.
<TABLE>
The following is a listing of the approximate average physical
occupancy rates for the Partnership's investment in Spacious Acres
Mobile Home Park during the period covered by this report.
<CAPTION>
Occupancy Rate
Three months
ended Mar 31, 1996 1995
-------------------- ----
<S> <C> <C>
Spacious Acres MHP 100% 100%
</TABLE>
I-8
Inflation:
Due to the comparatively low level of inflation in the
Partnership's last three fiscal years, the effect of inflation on
the Partnership has not been material. Should the rate of
inflation increase substantially over the life of the Partnership,
it is likely to moderately influence ongoing operations, in
particular, the operating expenses of the Partnership. The
commercial leases generally contain clauses permitting
pass-through of certain increased operating costs. Residential
leases are typically of one year or less in duration; this allows
the Partnership to react quickly (through rental increases) to
changes in the level of inflation. These factors should serve to
reduce any impact of rising costs on the Partnership.
I-9
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.
RAL-YIELD EQUITIES II LIMITED PARTNERSHIP
(Registrant)
Date: April 22, 1996 Robert A. Long
-------------------------
Robert A. Long
General Partner
Christine Kennedy
-------------------------
Christine Kennedy
Controller
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 491,755
<SECURITIES> 0
<RECEIVABLES> 12,591
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 507,671
<PP&E> 4,107,124
<DEPRECIATION> 1,546,462
<TOTAL-ASSETS> 4,864,504
<CURRENT-LIABILITIES> 126,630
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 4,737,874
<TOTAL-LIABILITY-AND-EQUITY> 4,864,504
<SALES> 0
<TOTAL-REVENUES> 431,573
<CGS> 0
<TOTAL-COSTS> 261,400
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 170,173
<INCOME-TAX> 0
<INCOME-CONTINUING> 170,173
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 170,173
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
