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: June 30, 1997 Commission File Number: 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 Identification
incorporation or organization) 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 1 of 11 Pages
<PAGE>
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, 1997, and December 31, 1996. 3
B. Statements of Earnings - Comparative three months ended
June 30, 1997, and 1996. 4
C. Statements of Earnings - Comparative six months ended
June 30, 1997, and 1996. 5
D. Statements of Cash Flows - Comparative six months ended
June 30, 1997, and 1996. 6
E. Note to Interim Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations. 8
PART II. OTHER INFORMATION
(Except for Exhibit 27, 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.)
Exhibit 27 Financial Data Schedule
Signature 11
Page 2 of 11 Pages
<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.
A. THE MARINA LIMITED PARTNERSHIP
Balance Sheets
June 30, 1997, and December 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C>
Assets
Cash and cash equivalents $ 3,511,156 4,591,103
Investment in U.S. Treasury note 996,875 996,875
Receivables from homesite sales 1,961,083 1,460,990
Accounts receivable and other assets 591,585 612,229
Prepaid sewer connections -
Flatfork Creek Utility 42,174 -
Homes and homesites available for sale 2,186,259 2,107,566
Land and land improvements 1,528,925 1,537,940
Marina property and equipment, net 2,283,360 2,080,772
Commercial properties, net 2,480,874 2,562,076
Recreational facilities, net 465,533 362,461
Other investments:
Marina I 2,530,491 1,931,943
Dockside Cafe 189,573 205,651
Flatfork Creek Utility 7,977 -
__________ __________
$ 18,775,865 18,449,606
========== ==========
Liabilities and Partners' Equity
Accounts payable 509,140 383,372
Construction costs payable - 128,014
Accrued bonuses 58,818 56,305
Deferred revenues and sale deposits 649,600 137,223
Amount payable to Flatfork Creek Utility - 107,778
Amount payable as trustee 9,790 7,265
__________ __________
1,227,348 819,957
__________ ___________
Partners' equity:
General partner - 201,188 units 5,229,400 5,270,017
Limited partners - 473,947 units 12,319,117 12,359,632
__________ __________
Total partners' equity 17,548,517 17,629,649
___________ __________
$ 18,775,865 18,449,606
========== ==========
</TABLE>
Page 3 of 11 Pages<PAGE>
B. THE MARINA LIMITED PARTNERSHIP
Statements of Earnings
Three Months Ended June 30, 1997, and 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C>
Revenues:
Homes & Homesite sales $1,206,000 $1,875,027
Marina operations 1,838,391 1,503,559
Equity in earnings of investee companies 698,368 152,100
Interest income 99,582 90,762
Rental income, net 76,295 51,385
Recreational facilities, net 36,578 39,218
Gain on sales of land held for investment 95,802 -
_________ _________
4,051,016 3,712,051
_________ _________
Expenses:
Cost of homes & homesites sold
and related expenses 613,159 988,025
Marina operations 1,210,499 1,005,194
General and administrative 242,260 223,557
Management fees paid to general partner 32,105 28,925
_________ _________
2,098,023 2,245,701
_________ _________
Net earnings 1,952,993 1,466,350
Net earnings attributable to
general partner 581,985 427,250
_________ _________
Net earnings attributable to
limited partners $ 1,371,008 1,039,100
========= =========
Weighted average number of limited
partner units outstanding 473,947 478,421
========= =========
Net earnings per limited partner unit $ 2.89 2.17
======= =======
</TABLE>
Page 4 of 11 Pages
<PAGE>
C. THE MARINA LIMITED PARTNERSHIP
Statements of Earnings
Six Months Ended June 30, 1997, and 1996
(Unaudited)
<TABLE>
1997 1996
<S> <C> <C>
Revenues:
Homes & Homesite sales $1,770,493 $2,038,027
Marina operations 2,083,752 1,638,268
Equity in earnings of investee companies 675,593 261,560
Interest income 207,262 193,895
Rental income, net 130,193 101,491
Recreational facilities, net 9,807 12,085
Gain on sales of land held for investment 95,802 -
_________ _________
4,972,902 4,245,326
__________ _________
Expenses:
Cost of homes & homesites sold
and related expenses 780,726 1,064,431
Marina operations 1,567,268 1,254,026
General and administrative 474,031 450,126
Management fees paid to general partner 37,820 32,650
_________ _________
2,859,845 2,801,233
_________ _________
Net earnings 2,113,057 1,444,093
Net earnings attributable to
general partner 629,684 420,765
_________ _________
Net earnings attributable to
limited partners $ 1,483,373 1,023,328
========= =========
Weighted average number of limited
partner units outstanding 473,947 478,421
========= =========
Net earnings per limited partner unit $ 3.13 2.14
======= =======
</TABLE>
Page 5 of 11 Pages
<PAGE>
D. THE MARINA LIMITED PARTNERSHIP
Statements of Cash Flows
Six Months Ended June 30, 1997, and 1996
(Unaudited)
<TABLE>
1997 1996
<S> <C> <C>
Cash flows from operating activities:
Net earnings (loss) $ 2,113,057 1,444,093
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation of properties 185,691 165,880
Equity in earnings of investee companies (675,593) (261,560)
Collection of receivables relating to prior
years' homesite sales 269,087 577,328
Receivables on current year's homesite sales (769,180) (715,798)
-
Homes and homesite development costs (564,885) (628,811)
Cost of homesites sold 486,192 895,793
Deferred revenues and sale deposits 512,377 527,143
Change in operating assets and liabilities (129,041) 68,535
_________ _________
Net cash provided by
operating activities 1,427,705 2,072,603
_________ _________
Cash flows from investing activities:
Investment in Marina I 76,763 397,630
Investment in Dockside Cafe,
net of distributions received 8,382 6,900
Additions to marina property and equipment (293,364) (105,578)
Land and land development costs (130,075) (249,171)
Cost of commercial properties (3,800) (165,132)
Additions to recreational facilities (112,984) (37,547)
Proceeds from sales of land held for investment 139,090 -
_________ _________
Net cash used by
investing activities (315,988) (152,898)
__________ _________
Cash flows from financing activities:
Distribution to partners (2,194,189) (2,194,189)
Amount payable as trustee 2,525 (5,243)
Utility refunds received - 4,514
_________ _________
Net cash used in
financing activities (2,191,664) (2,194,918)
_________ _________
Net (decrease) increase in cash
and cash equivalents (1,079,947) (275,213)
Cash and cash equivalents at
beginning of period 4,591,103 5,307,824
_________ _________
Cash and cash equivalents at
end of period $ 3,511,156 5,032,611
========= =========
</TABLE>
Page 6 of 11 Pages
<PAGE>
E. THE MARINA LIMITED PARTNERSHIP
Note to Interim Financial Statements
Three and Six Months Ended June 30, 1997, and 1996
(Unaudited)
NOTE (1) BASIS OF PRESENTATION
A summary of significant accounting policies used by The Marina Limited
Partnership is set forth in Note 1 of Notes to Financial Statements included
in the December 31, 1996 Annual Report Form 10-K.
The interim financial statements have been prepared in accordance with
instructions to Form 10-Q, and therefore, do not include all information and
footnotes necessary for a fair presentation of financial position, results of
operations and cash flows in conformity with generally accepted accounting
principles.
The interim financial statements at June 30, 1997, and for the three and six
months ended June 30, 1997 and 1996, have not been audited by independent
accountants, but reflect, in the opinion of management, all adjustments (which
include only normal recurring adjustments) necessary to present fairly the
financial position, results of operations and cash flows for such periods.
Page 7 of 11 Pages
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS FOR THE THREE AND
SIX MONTHS PERIODS ENDED JUNE 30, 1997 AND 1996.
The following discussion and analysis is intended to address the
significant factors affecting the Partnership's results of operations and
financial condition. It is designed to provide a more comprehensive
review of the operating results and financial position than could be
obtained from an analysis of the financial statements alone. It should,
however, be read in conjunction with the financial statements included
elsewhere herein.
GENERAL
The Partnership's principal sources of revenue in 1997 included
revenue from homesite sales, marina operations, equity in earnings of
investee companies, interest and rental income.
In 1997, the Partnership's primary sources of revenue were from
homesite sales which accounted for 36 percent for the first six months of
1997 compared with 48 percent for 1996, and marina operations which
accounted for 42 percent of the Partnership's revenues for the first six
months of 1997 as compared to 39 percent in 1996.
HOMESITE SALES
During the six month periods ended June 30, 1997 the Partnership
sold 15 homesites which compares to 19 homesites sold in 1996. There
were five homesites sold in Bridgewater compared with one homesite sold
in 1996. The Partnership sold 10 homesites from Cambridge compared with
17 homesites sold in 1996. The Partnership did not sell any homesites in
Morse Overlook compared with one homesite sold in 1996.
During the three month period ended June 30, 1997 the Partnership
sold 9 homesites which compares to 18 homesites sold during the second
quarter of 1996. There were three homesites sold in Bridgewater but no
homesites were sold in Bridgewater during the second quarter of 1996.
The Partnership sold six homesites from Cambridge during the second
quarter of 1997 compared with 17 homesites sold during the second quarter
of 1996. The Partnership did not sell any homesites in Morse Overlook
during the second quarter of 1997 compared with one homesite sold during
the second quarter of 1996.
The Partnership is the general partner of Marina I LP ("Marina I"),
which has developed homesites in Cambridge. During the six month periods
ended June 30, 1997 Marina I sold 12 homesites from Cambridge as compared
to 15 homesite sales in 1996. Marina I recorded $104,600 in revenue
during the second quarter of 1997 as its share from the Partnership's
sale of a homesite that was partially owned by Marina I as compared to
$136,000 recorded in 1996.
Marina I sold 12 homesites in Cambridge during the first six months of
1997, as compared to five homesite sales during the second quarter of
1996.
Page 8 of 11 Pages
<PAGE>
The Partnership received distributions of $77,000 from Marina I in
the six month period ended June 30, 1997 as compared with $398,000
received in the first six months of 1996.
RESULTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30
1997 COMPARED TO 1996. Net earnings increased by $669,000 in 1997
from 1996. This increase was primarily due to increased equity earnings
from Marina I of $377,000, an increase in earnings after direct costs of
$132,000 from Marina operations, and an increase in gains on the sale of
investment land of $96,000.
Earnings from homesite sales were $990,000 in 1997, which compares
to $974,000 in 1996. There was an increase in net earnings per homesite
sale in 1997 as a result of the sale of a higher percentage of waterfront
homesites.
The Partnership recognized $675,000 in equity earnings from Marina
I in 1997, compared to $298,000 in 1996.
In April 1997, the Partnership sold 1.6 acres of commercial property
held for investment at Geist Crossing for $260,000, which resulted in a
gain of $96,000.
Earnings from marina operations increased in 1997 over 1996 by
$132,000 as a result of revenues increasing by $445,000. This increase
results from increases in all significant areas of the Marina operations.
As of June 30, 1997, the Partnership had $474,000 of unamortized
dock rental for the 1997 boating season. This compared to $427,000 as of
June 30, 1996. The rental payments are deferred when received and
recognized as earned during the April to September boating season.
General and administrative expenses increased by $24,000 in 1997 as
compared to 1996. All elements of G&A expense were generally consistent
in 1997 with 1996.
On April 17, 1997, the Partnership made a cash distribution to the
partners of record on April 3, 1996, of $3.25 per unit of partnership
interest, for a total of $2,194,000. This compares to a cash
distribution of $3.25 per partnership unit on April 18,1996.
Page 9 of 11 Pages
<PAGE>
THREE MONTHS ENDED JUNE 30
1997 COMPARED TO 1996. Net earnings increased by $487,000 in 1997
from 1996. This increase was primarily due to increased equity earnings
from Marina I of $533,000, an increase in earnings after direct costs of
$130,000 from Marina operations, and an increase in gains on the sale of
investment land of $96,000. Increases were offset by a decrease in
homesite sales less related direct costs of $294,000.
Earnings from homesite sales were $593,000 in 1997, which compares
to $887,000 in 1996. There was an increase in net earnings per homesite
sale in 1997 as a result of the sale of a higher percentage of waterfront
homesites.
The Partnership recognized $671,000 in equity earnings from Marina
I in 1997, compared to $138,000 in 1996.
Earnings from marina operations increased in 1997 over 1996 by
$130,000 as a result of revenues increasing by $335,000. This increase
results from increases in all significant areas of the Marina operations.
General and administrative expenses increased by $19,000 in 1997 as
compared to 1996. All elements of G&A expense were generally consistent
in 1997 with 1996.
Page 10 of 11 Pages
<PAGE>
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/ Donald J. Calabria
________________________
Donald J. Calabria
Vice President and
Chief Financial Officer
The Marina II Corporation
General Partner of
The Marina Limited Partnership
DATE: August 12, 1997
Page 11 of 11 Pages
<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, 1997, 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-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 3,511,156
<SECURITIES> 996,875
<RECEIVABLES> 2,552,668
<ALLOWANCES> 0
<INVENTORY> 2,186,259
<CURRENT-ASSETS> 0
<PP&E> 6,758,692
<DEPRECIATION> 0
<TOTAL-ASSETS> 18,775,865
<CURRENT-LIABILITIES> 1,227,348
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 17,548,517
<TOTAL-LIABILITY-AND-EQUITY> 18,775,865
<SALES> 3,044,391
<TOTAL-REVENUES> 4,051,016
<CGS> 1,823,658
<TOTAL-COSTS> 2,098,023
<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> 1,952,993
<EPS-PRIMARY> 2.89
<EPS-DILUTED> 2.89
</TABLE>
