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Previous: DERMARX CORP, 10KSB40, 1997-07-10 |
Next: CSW ENERGY INC, POS AMC, 1997-07-10 |
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 quarterly period ended June 30, 1997
----------------------------------------
[ ] 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
0-16720
PARTICIPATING INCOME PROPERTIES 1986, L.P.
and
FFCA INVESTOR SERVICES CORPORATION 86-B
- --------------------------------------------------------------------------------
(Exact Name of Co-Registrants as Specified in Their
Organizational Documents)
Delaware 86-0570015
- --------------------------------------------------------------------------------
(Partnership State of Organization) (Partnership I.R.S. Employer
Identification Number)
Delaware 86-0557949
- --------------------------------------------------------------------------------
(Corporation State of Incorporation) (Corporation I.R.S. Employer
Identification Number)
The Perimeter Center
17207 North Perimeter Drive
Scottsdale, Arizona 85255
- --------------------------------------------------------------------------------
(Address of principal executive offices) (zip code)
Co-Registrants' telephone number including area code (602) 585-4500
--------------------
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
--- ---
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item l. Financial Statements.
------- ---------------------
PARTICIPATING INCOME PROPERTIES 1986, L.P. AND AFFILIATE
CONSOLIDATED BALANCE SHEETS
JUNE 30, 1997 AND DECEMBER 31, 1996
(Unaudited)
June 30, December 31,
1997 1996
------------ ------------
ASSETS
------
CASH AND CASH EQUIVALENTS $ 2,395,180 $ 2,346,371
RECEIVABLES FROM LESSEES 165,397 149,803
SECURED NOTES RECEIVABLE 116,329 131,323
PROPERTY SUBJECT TO OPERATING LEASES, at cost
Land 6,773,272 6,773,272
Buildings 29,669,322 29,669,322
Equipment 626,781 626,781
------------ ------------
Total 37,069,375 37,069,375
Less-Accumulated depreciation 11,596,128 10,937,860
------------ ------------
25,473,247 26,131,515
------------ ------------
Total assets $ 28,150,153 $ 28,759,012
============ ============
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
DISTRIBUTION PAYABLE TO LIMITED PARTNERS $ 1,386,089 $ 1,321,426
PAYABLE TO GENERAL PARTNER -- 10,304
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 44,751 49,704
RENTAL DEPOSITS 114,400 114,400
------------ ------------
Total liabilities 1,545,240 1,495,834
------------ ------------
MINORITY INTEREST (15,581) (14,923)
------------ ------------
PARTNERS' CAPITAL (DEFICIT):
General partner (164,634) (158,058)
Limited partners 26,785,128 27,436,159
------------ ------------
Total partners' capital 26,620,494 27,278,101
------------ ------------
Total liabilities and partners' capital $ 28,150,153 $ 28,759,012
============ ============
<PAGE>
PARTICIPATING INCOME PROPERTIES 1986, L.P. AND AFFILIATE
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
6/30/97 6/30/96 6/30/97 6/30/96
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUES:
Rental $1,072,248 $1,072,247 $2,144,495 $2,150,878
Participating rentals 478,870 458,003 892,111 926,338
Interest and other 28,480 22,556 54,632 47,333
Gain on sale of property -- -- -- 16,410
---------- ---------- ---------- ----------
1,579,598 1,552,806 3,091,238 3,140,959
---------- ---------- ---------- ----------
EXPENSES:
General partner fees 138,432 135,786 269,955 272,566
Depreciation 329,134 414,633 658,268 829,265
Operating 39,899 42,525 88,676 92,925
---------- ---------- ---------- ----------
507,465 592,944 1,016,899 1,194,756
---------- ---------- ---------- ----------
MINORITY INTEREST
IN INCOME 1,232 1,133 2,400 2,297
---------- ---------- ---------- ----------
NET INCOME $1,070,901 $ 958,729 $2,071,939 $1,943,906
========== ========== ========== ==========
NET INCOME ALLOCATED TO:
General partner $ 10,709 $ 9,587 $ 20,719 $ 19,439
Limited partners 1,060,192 949,142 2,051,220 1,924,467
---------- ---------- ---------- ----------
$1,070,901 $ 958,729 $2,071,939 $1,943,906
========== ========== ========== ==========
NET INCOME PER LIMITED
PARTNERSHIP UNIT (based on
51,687 units held by limited partners) $ 20.51 $ 18.36 $ 39.69 $ 37.23
========== ========== ========== ==========
</TABLE>
<PAGE>
PARTICIPATING INCOME PROPERTIES 1986, L.P. AND AFFILIATE
CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' CAPITAL
FOR THE SIX MONTHS ENDED JUNE 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Limited Partners
General -----------------------------
Partner Number Total
Amount of Units Amount Amount
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
BALANCE, December 31, 1996 $ (158,058) 51,687 $ 27,436,159 $ 27,278,101
Net income 20,719 -- 2,051,220 2,071,939
Distributions to partners (27,295) -- (2,702,251) (2,729,546)
------------ ------------ ------------ ------------
BALANCE, June 30, 1997 $ (164,634) 51,687 $ 26,785,128 $ 26,620,494
============ ============ ============ ============
</TABLE>
<PAGE>
PARTICIPATING INCOME PROPERTIES 1986, L.P. AND AFFILIATE
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 2,071,939 $ 1,943,906
Adjustments to net income:
Depreciation 658,268 829,265
Gain on sale of property -- (16,410)
Minority interest in income 2,400 2,297
Change in assets and liabilities:
Increase in receivables from lessees (15,594) (14,617)
Decrease in payable to general partner (10,304) (17,705)
Decrease in accounts payable and
accrued liabilities (4,953) (6,458)
----------- -----------
Net cash provided by operating activities 2,701,756 2,720,278
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of property -- 430,192
Principal collections on secured notes receivable 14,994 13,572
----------- -----------
Net cash provided by investing activities 14,994 443,764
----------- -----------
CASH FLOWS FOR FINANCING ACTIVITIES:
Partner distributions declared (2,729,546) (4,834,964)
Increase in distribution payable 64,663 --
Distributions to minority interest (3,058) (3,113)
----------- -----------
Net cash used in financing activities (2,667,941) (4,838,077)
----------- -----------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 48,809 (1,674,035)
CASH AND CASH EQUIVALENTS, beginning of period 2,346,371 3,649,977
----------- -----------
CASH AND CASH EQUIVALENTS, end of period $ 2,395,180 $ 1,975,942
=========== ===========
</TABLE>
<PAGE>
PART I - FINANCIAL INFORMATION
- ------------------------------
Item 2. Management's Discussion and Analysis of
- ------- Financial Condition and Results of Operations
---------------------------------------------
As of June 30, 1997, Participating Income Properties 1986, L.P., a
Delaware limited partnership, (the Registrant), had received $51,687,000
in gross proceeds from its offering of Units. Net funds available for
investment, after payment of sales commissions, organization costs and
acquisition fees, amounted to $45,232,790. The offering of Units is the
Registrant's sole source of capital, and since the final closing of
limited partnership units was held on April 16, 1987, the Registrant will
not receive additional funds from the offering. The Registrant was fully
invested in eleven travel plaza properties by September 1988 and does not
anticipate any further capital expenditures.
The Registrant declared a cash distribution to the limited partners of
$1,385,707 for the quarter ended June 30, 1997 (the period), which,
combined with the first quarter distribution of $1,316,544 amounts to
$2,702,251 year to date. During the period, all net proceeds not invested
in real estate were invested in Government Agency discount notes and bank
repurchase agreements (which are secured by United States Treasury and
Government obligations).
During the period, base rental revenue from the travel plaza leases
amounted to $1,072,248, which remains unchanged from the prior year. The
Registrant received or accrued participating rentals of $478,870 for the
quarter ended June 30, 1997 as compared to $458,003 for the same quarter
of 1996. The $20,867 increase in participating rental revenue was due to
an overall increase in travel plaza sales during the period. Total
expenses decreased by $85,479 to $507,465 for the period primarily due to
a decrease in depreciation expense related to the sale of travel plaza
equipment in the last twelve months.
The decrease in total assets reflected in the Registrant's financial
statements filed with this Report is mainly attributable to the
depreciation allowance, which is deducted for accounting purposes from the
cost of the assets on the Registrant's books.
In the opinion of management, the financial information included in this
report reflects all adjustments necessary for fair presentation. All such
adjustments are of a normal recurring nature.
<PAGE>
FFCA INVESTOR SERVICES CORPORATION 86-B
---------------------------------------
BALANCE SHEET - JUNE 30, 1997
-----------------------------
ASSETS
Cash $100
Investment in Participating Income Properties 1986, L.P., at cost 100
----
Total Assets $200
====
LIABILITY
Payable to Parent $100
STOCKHOLDER'S EQUITY
Common Stock; $l par value; 100 shares authorized,
issued and outstanding 100
----
Liability and Stockholder's Equity $200
====
Note: FFCA Investor Services Corporation 86-B (86-B) was organized on June
23, 1986 to act as the assignor limited partner in Participating Income
Properties 1986, L.P. (PIP-86).
The assignor limited partner is the owner of record of the limited
partnership units of PIP-86. All rights and powers of 86-B have been
assigned to the holders, who are the registered and beneficial owners of
the units. Other than to serve as assignor limited partner, 86-B has no
other business purpose and will not engage in any other activity or incur
any debt.
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on their behalf by
the undersigned thereunto duly authorized.
PARTICIPATING INCOME PROPERTIES 1986, L.P.
By FFCA MANAGEMENT COMPANY, L.P.
General Partner
By PERIMETER CENTER MANAGEMENT COMPANY
Corporate General Partner
DATE: July 10, 1997 By /s/ John R. Barravecchia
---------------------------------------------
John R. Barravecchia, Chief Financial Officer
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
co-registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
FFCA INVESTOR SERVICES CORPORATION 86-B
DATE: July 10, 1997 By /s/ John R. Barravecchia
---------------------------------------------
John R. Barravecchia, President
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE BALANCE SHEET AS OF JUNE 30, 1997 AND
THE STATEMENT OF INCOME FOR THE SIX MONTHS ENDED
JUNE 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000797977
<NAME> PARTICIPATING INCOME PROPERTIES 1986, L.P.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<EXCHANGE-RATE> 1
<CASH> 2,395,180
<SECURITIES> 0
<RECEIVABLES> 281,726
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 37,069,375
<DEPRECIATION> 11,596,128
<TOTAL-ASSETS> 28,150,153
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 26,620,494
<TOTAL-LIABILITY-AND-EQUITY> 28,150,153
<SALES> 0
<TOTAL-REVENUES> 3,091,238
<CGS> 0
<TOTAL-COSTS> 1,016,899
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,071,939
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,071,939
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,071,939
<EPS-PRIMARY> 39.69
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE BALANCE SHEET AS OF JUNE 30, 1997
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
BALANCE SHEET.
</LEGEND>
<CIK> 0000797978
<NAME> FFCA INVESTOR SERVICES CORPORATION 86-B
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<EXCHANGE-RATE> 1
<CASH> 100
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 200
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 100
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 200
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
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