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:
June 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
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THE MARINA LIMITED PARTNERSHIP
FORM 10-Q
Table of Contents
PART I. FINANCIAL INFORMATION Page No.
Item 1. Financial Statements (unaudited)
A. Balance Sheets - June 30, 1996, and
December 31, 1995. 3
B. Statements of Earnings - Comparative
three months ended June 30, 1996, and 1995. 4
C. Statements of Earnings - Comparative
six months ended June 30, 1996, and 1995. 5
D. Statements of Cash Flows - Comparative
six months ended June 30, 1996, and 1995. 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations. 7
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 9
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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
June 30, 1996, and December 31, 1995
(Unaudited)
<CAPTION>
1996 1995
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 5,032,611 5,307,824
Contracts receivable from
homesite sales 2,066,739 1,928,269
Other receivables and assets 658,658 621,232
Home and homesites available
for sale 1,037,520 1,306,645
Land and land improvements 1,479,298 1,302,800
Marina property and equipment,
net 2,099,649 2,079,206
Commercial properties, net 2,625,309 2,534,875
Recreational facilities, net 447,876 421,491
Other investments
Marina I 1,771,038 1,870,668
Dockside Cafe 192,687 228,587
Flatfork Creek Utility 82,264 89,704
$ 17,493,649 17,691,301
LIABILITIES AND PARTNERS'
EQUITY
Accounts payable 476,075 366,302
Construction costs payable - 79,931
Accrued bonuses 71,925 83,087
Deferred revenues and sale
deposits 655,216 128,073
Amount payable to Flatfork
Creek Utility 242,550 235,200
Amount payable as trustee 7,848 13,092
1,453,614 905,685
Partners' equity:
General partner - 196,714
units 4,690,591 4,907,830
Limited partners - 478,421
units 11,349,444 11,877,786
Total partners' equity 6,040,035 16,785,616
$17,493,649 17,691,301
</TABLE>
<TABLE>
B. THE MARINA LIMITED PARTNERSHIP
Statements of Earnings
Three Months Ended June 30, 1996, and 1995
(Unaudited)
<CAPTION>
1996 1995
<S> <C> <C>
Revenues:
Home and homesite sales $1,875,027 1,304,000
Marina operations 1,503,559 1,450,195
Equity in earnings of
investee companies 152,100 59,676
Interest income 90,762 83,212
Rental income, net 51,385 56,831
Recreational facilities, net 39,218 6,575
Gain on sales of land held
for investment - 191,468
3,712,051 3,151,957
Expenses:
Cost of home and homesites
sold and related expenses 988,025 459,780
Marina operations 1,005,194 978,315
General and administrative 223,557 175,601
Management fees paid to
general partner 28,925 20,000
2,245,701 1,633,696
Net earnings 1,466,350 1,518,261
Net earnings attributable to
general partner 427,250 442,376
Net earnings attributable to
limited partners $1,039,100 1,075,885
Weighted average number of
limited partner units
outstanding 478,421 478,421
Net earnings per limited
partner unit $ 2.17 2.25
/TABLE
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<TABLE>
C. THE MARINA LIMITED PARTNERSHIP
Statements of Earnings
Six Months Ended June 30, 1996, and 1995
(Unaudited)
<CAPTION>
1996 1995
<S> <C> <C>
Revenues:
Home and homesite sales $2,038,027 1,633,000
Marina operations 1,638,268 1,602,076
Equity in earnings of
investee companies 261,560 217,676
Interest income 193,895 164,452
Rental income, net 101,491 89,385
Recreational facilities, net 12,085 30,929
Gain on sales of land held
for investment - 498,372
4,245,326 4,235,890
Expenses:
Cost of home and homesites
sold and related expenses 1,064,431 652,277
Marina operations 1,254,026 1,220,149
General and administrative 450,126 335,914
Management fees paid to
general partner 32,650 23,700
2,801,233 2,232,040
Net earnings 1,444,093 2,003,850
Net earnings attributable to
general partner 420,765 583,862
Net earnings attributable to
limited partners $1,023,328 1,419,988
Weighted average number of
limited partner units
outstanding 478,421 478,421
Net earnings per limited
partner unit $ 2.14 2.97
</TABLE>
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<TABLE>
D. THE MARINA LIMITED PARTNERSHIP
Statements of Cash Flows
Six Months Ended June 30, 1996, and 1995
(Unaudited)
<CAPTION>
1996 1995
<S> <C> <C>
Cash flows from operating
activities:
Net earnings $1,444,093 2,003,850
Items which do not provide
(use) cash:
Depreciation of properties 165,880 101,840
Equity in earnings of
investee companies (261,560) (217,676)
Increase in contracts
receivable (138,470) (577,601)
Gain on sales of land
held for investment - (498,373)
Homes and homesite
development costs (628,811) (1,023,207)
Cost of homesites sold 895,793 509,106
Deferred revenues and
sale deposits 527,143 513,392
Other non-cash items, net 68,535 288,247
Net cash provided by
operating activities 2,072,603 1,099,578
Cash flows from investing
activities:
Investment in Marina I 397,630 200,000
Investment in Dockside Cafe 6,900 -
Marina property and equipment (105,578) (235,767)
Land and land development costs (249,171) (921,759)
Commercial properties (165,132) (2,161)
Recreational facilities (37,547) (432,653)
Proceeds from sales of land
held for investment - 2,278,000
Net cash (used) provided by
investing activities (152,898) 885,660
Cash flows from financing
activities:
Distribution to partners 2,194,189) (1,350,270)
Amount payable as trustee (5,244) (13,963)
Utility refunds received 4,515 -
Net cash used by
financing activities (2,194,918) (1,364,233)
Net (decrease) increase
in cash and cash
equivalents (275,213) 621,005
Cash and cash equivalents at
beginning of period 5,307,824 4,266,499
Cash and cash equivalents at
end of period $ 5,032,611 4,887,504
</TABLE>
ITEM 2. THE MARINA LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS FOR THE THREE
MONTHS AND SIX MONTHS ENDED JUNE 30, 1996, AND 1995.
The Partnership's net earnings for the second
quarter of 1996 were $1,466,000, as compared to net
earnings of $1,518,000 for the second quarter of 1995.
Revenues for the second quarter of 1996 were $3,712,000
compared to $3,152,000 for the second quarter of 1995.
Net earnings for the first six months of 1996 were
$1,444,000, as compared to $2,004,000 for the first six
months of 1995. Revenues were $4,245,000 for the first
six months of 1996, as compared to $4,236,000 for the
first six months of 1995.
There were no gains on sale of land held for
investment during the first six months of 1996. During
the first six 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 six months of 1995.
The Partnership sold 19 homesites during the first
six months of 1996. One waterfront homesite was sold
from Bridgewater, the Partnership's first single-family
homesite development located near Geist Marina. The
Partnership sold 17 homesites from Cambridge, one of
which included a home that the Partnership had used as
a sales office. In the second quarter of 1996, the
Partnership opened for sale 43 homesites at Morse
Overlook, a single-family homesite project located at
Morse Lake. The Partnership sold one waterfront
homesite from Morse Overlook during the second quarter
of 1996. This compares with 19 homesites sold by the
Partnership in the first six months of 1995, three of
which were from Bridgewater and sixteen of which were
from Cambridge. Earnings from homesite sales were
$974,000 in the first six months of 1996, compared with
$981,000 in the first six months of 1995. There was a
resulting decrease in earnings per homesite sale which<PAGE>
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was due to the sale of the home that was used as a
sales office, and the sale of a waterfront lot for
which most of the profit was due Marina I. During the
first six months of 1996, the Partnership spent
$629,000 for improvements to its residential homesite
projects compared to $1,023,000 spent in the first six
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 15 homesites in
Cambridge in the first six months of 1996, compared to
18 homesites sold in the first six months of 1995. The
Partnership recognized $298,000 in equity earnings from
Marina I from its homesite sales in the first six
months of 1996, compared to $300,000 recognized in the
first six months of 1995. Marina I recorded $136,000
in homesite revenue from the Partnership in the second
quarter 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
six months of 1996.
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 an equity
loss from Dockside Cafe of $29,000 in the first six
months of 1996, compared to an equity loss of $26,000
in the first six months of 1995. The Partnership
contributed $25,000 as operating capital and received
a distribution of $32,000 from Dockside Cafe during the
first six months of 1996.
Rental income was $101,000 in the first six months
of 1996, compared to $89,000 in the first six months of
1995, an increase of $12,000. Rental income at Marina
Village, net of expenses, increased by $27,000, while
rental income at the Blue Heron and Carrigan Crossing
decreased by $10,000.
General and administrative expenses increased to
$450,000 in the first six months of 1996, compared to
$336,000 in the first six months of 1995. This
increase primarily resulted from an increase in
salaries and wages of $67,000, and an increase in
professional fees of $30,000.
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As of June 30, 1996, the Partnership collected
$427,000 of advance dock rental toward the 1996 boating
season. This compared to $396,000 collected as of June
30, 1995. The rental payments are deferred when
received and recognized as earned during the April to
September boating season.
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: August 7, 1996
<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
JUNE 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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 5,032,611
<SECURITIES> 0
<RECEIVABLES> 2,725,397
<ALLOWANCES> 0
<INVENTORY> 1,037,520
<CURRENT-ASSETS> 0
<PP&E> 6,652,132
<DEPRECIATION> 0
<TOTAL-ASSETS> 17,493,649
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 16,040,035
<TOTAL-LIABILITY-AND-EQUITY> 17,493,649
<SALES> 3,676,295
<TOTAL-REVENUES> 4,245,326
<CGS> 2,318,457
<TOTAL-COSTS> 2,801,233
<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> 1,444,093
<EPS-PRIMARY> 2.14
<EPS-DILUTED> 2.14
</TABLE>
