SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended: Commission File Number:
September 30, 1996 0-13174
THE MARINA LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
Indiana 35-1689935
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification
Number)
11691 Fall Creek Road
Indianapolis, IN 46256
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: (317) 845-0270
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>
THE MARINA LIMITED PARTNERSHIP
FORM 10-Q
Table of Contents
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
A. Balance Sheets - September 30, 1996, and December
31, 1995.
B. Statements of Earnings - Comparative three months
ended September 30, 1996, and 1995.
C. Statements of Earnings - Comparative nine months
ended September 30, 1996, and 1995.
D. Statements of Cash Flows - Comparative nine months
ended September 30, 1996, and 1995.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations.
PART II. OTHER INFORMATION
(The items of Part II are inapplicable or the answers
thereto are negative and, accordingly, no reference
is made to said items in this report.)
Signature
<PAGE>
PART I - FINANCIAL INFORMATION
THE MARINA LIMITED PARTNERSHIP
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
The financial information incorporated in this form
reflects all adjustments which are, in the opinion of
management, necessary to a fair statement of the
results for the interim period.
<TABLE>
A. THE MARINA LIMITED PARTNERSHIP
Balance Sheets
September 30, 1996, and December 31, 1995
(Unaudited)
<CAPTION>
1996 1995
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 5,591,206 5,307,824
Contracts receivable from
homesite sales 2,073,940 1,928,269
Other receivables and assets 521,447 621,232
Home and homesites available
for sale 1,178,514 1,306,645
Land and land improvements 1,980,794 1,302,800
Marina property and
equipment, net 2,082,229 2,079,206
Commercial properties, net 2,598,017 2,534,875
Recreational facilities, net 432,908 421,491
Other investments:
Marina I 1,838,038 1,870,668
Dockside Cafe 254,834 228,587
Flatfork Creek Utility 63,264 89,704
$ 18,615,191 17,691,301
LIABILITIES AND PARTNERS'
EQUITY
Accounts payable 371,455 366,302
Construction costs payable - 79,931
Accrued bonuses 130,475 83,087
Deferred revenues and sale
deposits 107,178 128,073
Amount payable to Flatfork
Creek Utility 131,208 235,200
Amount payable as trustee 7,265 13,092
747,581 905,685
Partners' equity:
General partner
201,188 and 196,714 units 5,340,929 4,907,830
Limited partners
473,947 and 478,421 units 12,526,681 11,877,786
Total partners' equity 17,867,610 16,785,616
$ 18,615,191 17,691,301
/TABLE
<PAGE>
<TABLE>
B. THE MARINA LIMITED PARTNERSHIP
Statements of Earnings
Three Months Ended September 30, 1996, and 1995
(Unaudited)
<CAPTION>
1996 1995
<S> <C> <C>
Revenues:
Homesite sales $ 1,400,000 2,664,000
Marina operations 1,196,698 1,196,005
Equity in earnings of
investee companies 127,000 299,600
Interest income 121,790 112,735
Rental income, net 83,100 35,836
Recreational facilities,
net 112,486 70,046
3,041,074 4,378,222
Expenses:
Cost of home and homesites
sold and related expenses 311,157 1,593,806
Marina operations 662,489 661,009
General and administrative 206,852 183,054
Management fees paid to
general partner 33,000 33,000
1,213,498 2,470,869
Net earnings 1,827,576 1,907,353
Net earnings attributable to
general partner 544,618 555,745
Net earnings attributable to
limited partners $ 1,282,958 1,351,608
Weighted average number of
limited partner units
outstanding 473,947 478,421
Net earnings per limited
partner unit $ 2.71 2.83
</TABLE>
<PAGE>
<TABLE>
C. THE MARINA LIMITED PARTNERSHIP
Statements of Earnings
Nine Months Ended September 30, 1996, and 1995
(Unaudited)
<CAPTION>
1996 1995
<S> <C> <C>
Revenues:
Home and homesite sales $ 3,438,027 4,297,000
Marina operations 2,834,966 2,798,081
Equity in earnings of
investee companies 388,560 517,276
Interest income 315,685 277,187
Rental income, net 184,591 125,221
Recreational facilities,
net 124,571 100,975
Gain on sales of land
held for investment - 498,372
7,286,400 8,614,112
Expenses:
Cost of home and homesites
sold and related expenses 1,375,588 2,246,084
Marina operations 1,916,515 1,881,157
General and administrative 656,978 518,968
Management fees paid to
general partner 65,650 56,700
4,014,731 4,702,909
Net earnings 3,271,669 3,911,203
Net earnings attributable
to general partner 960,491 1,139,607
Net earnings attributable
to limited partners $ 2,311,178 2,771,596
Weighted average number
of limited partner units
outstanding 476,930 478,421
Net earnings per limited
partner unit $ 4.85 5.79
</TABLE>
<PAGE>
<TABLE>
D. THE MARINA LIMITED PARTNERSHIP
Statements of Cash Flows
Nine Months Ended September 30, 1996, and 1995
(Unaudited)
<CAPTION>
1996 1995
<S> <C> <C>
Cash flows from operating
activities:
Net earnings $ 3,271,669 3,911,203
Items which do not provide
(use) cash:
Depreciation of
properties 248,775 152,760
Equity in earnings of
investee companies (388,560) (517,276)
Increase in contracts
receivable (145,671) (1,232,863)
Gain on sales of land held
for investment - (498,373)
Homes and homesite
development costs (916,127) (2,356,853)
Cost of homesites sold 1,042,115 1,934,546
Deferred revenues and
sale deposits (20,895) 33,404
Other non-cash items,
net 48,334 1,128,547
Net cash provided by
operating activities 3,139,640 2,555,095
Cash flows from investing
activities:
Investment in Marina I 397,630 500,000
Investment in Dockside
Cafe 23,753 30,000
Marina property and
equipment (130,681) (260,494)
Land and land development
costs (750,667) (716,223)
Commercial properties (172,631) (922,375)
Recreational facilities (28,160) (432,653)
Proceeds from sales of
land held for
investment - 2,278,000
Net cash (used) provided
by investing activities (660,756) 476,255
Cash flows from financing
activities:
Distribution to partners (2,194,189) (1,350,270)
Amount payable as trustee (5,827) (13,963)
Utility refunds received 4,514 -
Net cash used by
financing activities (2,195,502) (1,364,233)
Net increase in cash
and cash equivalents 283,382 1,667,117
Cash and cash equivalents at
beginning of period 5,307,824 4,266,499
Cash and cash equivalents at
end of period $ 5,591,206 5,933,616
ITEM 2. THE MARINA LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS FOR THE THREE
MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 1996, AND
1995.
The Partnership's net earnings for the third
quarter of 1996 were $1,828,000, as compared to net
earnings of $1,907,000 for the third quarter of 1995.
Revenues for the third quarter of 1996 were $3,041,000
compared to $4,378,000 for the third quarter of 1995.
Net earnings for the first nine months of 1996
were $3,272,000, as compared to $3,911,000 for the
first nine months of 1995. Revenues were $7,286,000
for the first nine months of 1996, as compared to
$8,614,000 for the first nine months of 1995.
The decrease in net earnings for the first nine
months of 1996 compared to the first nine months of
1995 was due to a lack of sales of land held for
investment during 1996. During the first nine months
of 1995, the Partnership sold 8.3 acres of commercial
property at Geist Crossing for a total of $2,278,000.
Gains of $498,000 were recognized on these sales in the
first nine months of 1995.
The Partnership sold 27 homesites during the first
nine months of 1996. Three waterfront homesites and
one off-water homesite were sold from Bridgewater, the
Partnership's first single-family homesite development
located near Geist Marina. The Partnership sold 20
homesites from Cambridge, one of which included a home
that the Partnership had used as a sales office. The
Partnership additionally sold three waterfront
homesites from Morse Overlook, a single-family homesite
project located at Morse Lake. This compares with 38
homesites sold by the Partnership in the first nine
months of 1995, four of which were from Bridgewater and
34 of which were from Cambridge. Earnings from
homesite sales were $2,062,000 in the first nine months
of 1996, compared with $2,051,000 in the first nine
months of 1995. There was a resulting increase in
earnings per homesite sale which was due to the sale of
a premier waterfront homesite on the peninsula in
Bridgewater. During the first nine months of 1996, the
Partnership spent $916,000 for improvements to its
residential homesite projects compared to $2,357,000
spent in the first nine months of 1995.
The Partnership is the general partner of The
Marina I L.P., an Indiana limited partnership ("Marina
I"), which has developed homesites in the first four
sections of Cambridge. Marina I sold 16 homesites in
Cambridge in the first nine months of 1996, compared to
31 homesites sold in the first nine months of 1995.
The Partnership recognized $365,000 in equity earnings
from Marina I from its homesite sales in the first nine
months of 1996, compared to $545,000 recognized in the
first nine months of 1995. Marina I recorded $136,000
in homesite revenue from the Partnership in the first
nine months of 1996 as its share of profit earned on a
homesite sold in Cambridge by the Partnership that was
partially owned by Marina I. The Partnership, received
a distribution of $398,000 from Marina I in the first
nine months of 1996.
During the third quarter of 1996, the Partnership
purchased waterfront property at Geist Lake for
$443,000 for future residential development.
The Partnership is a limited partner of Dockside
Cafe L.P., an Indiana limited partnership ("Dockside
Cafe"), which operates the Blue Heron restaurant at
Marina Village, and the Carrigan Crossing restaurant at
Morse Marina. The Partnership recognized equity
earnings from Dockside Cafe of $50,000 in the first
nine months of 1996, compared to equity earnings of
$16,000 in the first nine months of 1995. The
Partnership contributed $33,000 as operating capital
and received a distribution of $57,000 from Dockside
Cafe during the first nine months of 1996.
Rental income was $185,000 in the first nine
months of 1996, compared to $125,000 in the first nine
months of 1995, an increase of $60,000. Rental income
at Marina Village, net of expenses, increased by
$90,000 due to nine months of rental activity in 1996,
compared to one month in 1995. This increase in rental
income was offset by a decrease in rental income at the
Blue Heron and Carrigan Crossing of $24,000.
General and administrative expenses increased to
$657,000 in the first nine months of 1996, compared to
$519,000 in the first nine months of 1995. This
increase primarily resulted from an increase in
salaries and wages of $64,000, and an increase in
property tax expense of $30,000.
On July 1, 1996, certain shareholders of The
Marina II Corporation, the general partner, contributed
limited partner units to the general partner or
converted general partner units to limited partner
units, resulting in a contribution of a net total of
4,474 limited partner units to the general partner,
thereby increasing general partner units. Earnings per
unit have been computed on the basis of 196,714
weighted average outstanding general partner units and
478,421 weighted average outstanding limited partner
units from January 1 through June 30, 1996, and 201,188
weighted average outstanding general partner units and
473,947 weighted average outstanding limited partner
units from July 1 through September 30, 1996.
On April 18, 1996, the Partnership made a cash
distribution to the partners of record on April 4,
1996, of $3.25 per unit of partnership interest, for a
total of $2,194,000. This compares to a partnership
distribution of $2.00 per unit made on April 17, 1995
for a total $1,350,000.
SIGNATURE
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.
THE MARINA LIMITED PARTNERSHIP
(Registrant)
By: /s/ Jane E. Nold Shriner
Jane E. Nold Shriner
Vice President and
Chief Financial Officer
The Marina II Corporation
General Partner of
The Marina Limited Partnership
DATE: November 11, 1996
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS CONTAINED IN THE FILER'S FORM 10-Q FOR THE QUARTER ENDED
SEPTEMBER 30, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000803605
<NAME> THE MARINA LIMITED PARTNERSHIP
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 5,591,206
<SECURITIES> 0
<RECEIVABLES> 2,595,387
<ALLOWANCES> 0
<INVENTORY> 1,178,514
<CURRENT-ASSETS> 0
<PP&E> 7,093,948
<DEPRECIATION> 0
<TOTAL-ASSETS> 18,615,191
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 17,867,610
<TOTAL-LIABILITY-AND-EQUITY> 18,615,191
<SALES> 6,272,993
<TOTAL-REVENUES> 7,286,400
<CGS> 3,292,103
<TOTAL-COSTS> 4,014,731
<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> 3,271,669
<EPS-PRIMARY> 4.85
<EPS-DILUTED> 4.85
</TABLE>
