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: March 31, 1998 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
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>2
THE MARINA LIMITED PARTNERSHIP
FORM 10-Q
Table of Contents
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
A. Balance Sheets - March 31, 1998, and December 31, 1997.
B. Statements of Earnings - Comparative three months ended
March 31, 1998, and 1997.
C. Statements of Cash Flows - Comparative three months ended
March 31, 1998, and 1997.
D. Note to Interim Financial Statements
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>3
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
March 31, 1998, and December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
Assets 1998 1997
------ ---- ----
<S> <C> <C>
Cash and cash equivalents $ 5,989,484 $ 5,531,556
Receivables from homesite sales 1,374,884 1,468,895
Other receivables and assets 1,063,745 519,445
Properties held for sale:
Homesites available for sale 1,631,098 1,864,770
Homes available for sale 2,158,175 1,743,092
Land and land improvements 734,395 735,678
---------- ---------
4,523,668 4,343,540
---------- ---------
Property and equipment:
Marine property and equipment,net 2,820,310 2,630,222
Recreational facilities, net 503,842 508,001
Commercial properties, net 2,429,187 2,472,045
---------- ----------
5,753,339 5,610,268
---------- ----------
Other investments:
Marina I 2,659,439 2,404,228
Dockside Cafe 124,575 139,119
Flatfork Creek Utility 4,933 20,482
---------- ----------
$ 21,494,067 $20,037,533
========== ==========
Liabilities and Partners' Equity
Accounts payable 414,411 590,865
Accrued bonuses 58,458 66,666
Deferred revenues and sale deposits 1,003,581 202,195
Total liabilities 1,476,450 859,726
---------- ----------
Partners' equity:
General partner 6,052,233 5,731,363
Limited partners 13,965,384 13,446,444
---------- ----------
Total partners' equity 20,017,617 19,177,807
---------- ----------
$ 21,494,067 $20,037,533
========== ==========
</TABLE>
<PAGE>4
B. THE MARINA LIMITED PARTNERSHIP
Statements of Earnings
Three Months Ended March 31, 1998, and 1997
(Unaudited)
<TABLE>
<CAPTION>
1998 1997
---- ----
<S> <C> <C>
Revenues:
Homes and homesite sales $1,320,365 $ 564,492
Marine operations 187,164 245,361
Equity in earnings of investee companies 217,663 (22,775)
Interest income 117,091 107,680
Rental income, net 131,000 53,898
Recreational facilities, net (35,004) (26,771)
Gain on sales of land held for investment 234,275 -
--------- ------
2,172,554 921,885
Cost and expenses:
Cost of homes and homesites sold
and related expenses 775,628 167,567
Marine operations 299,631 356,769
General and administrative 249,641 231,771
Management fees paid to general partner 7,844 5,715
--------- ---------
1,332,744 761,822
--------- ---------
Net earnings 839,810 160,063
Net earnings attributable to general partner 320,870 47,699
--------- ---------
Net earnings attributable to limited partners $ 518,940 $ 112,364
========= =========
Weighted average number of limited
partner units outstanding 417,183 473,947
Net earnings per limited partner unit $ 1.24 $ .24
======== =========
</TABLE>
<PAGE>5
C. THE MARINA LIMITED PARTNERSHIP
Statements of Cash Flows
Three Months Ended March 31, 1998, and 1997
(Unaudited)
<TABLE>
<CAPTION>
1998 1997
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net earnings (loss) $ 839,810 $ 160,063
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation of properties 105,967 87,001
Equity in earnings of investee companies (217,663) 22,775
Collection of receivables relating to prior
years' homesite sales 251,511 200,451
Receivables on current year's homesite sales (157,500) -
Gain on sales of land held for investment (234,275) -
Homes and homesite development costs (420,231) (152,317)
Cost of homesites sold 238,969 89,258
Deferred revenues and sale deposits 801,386 763,374
Change in operating assets and liabilities (728,962) (688,190)
Net cash provided by
operating activities 479,012 482,415
-------- ----------
Cash flows from investing activities:
Investment in Dockside Cafe,
net of distributions received (7,455) (10,195)
Additions to marine property and equipment (245,403) (195,969)
Additions to land and land development costs (1,801) (36,710)
Additions to cost of commercial properties - 2,044
Additions to recreational facilities (3,635) (69,580)
Proceeds from sales of land held for investment 237,210 -
Net cash (used) by investing activities (21,084) (310,410)
Net increase in cash and cash equivalents 457,928 172,005
Cash and cash equivalents at beginning of period 5,531,556 4,591,103
--------- ---------
Cash and cash equivalents at end of period $ 5,989,484 $4,763,108
========= =========
</TABLE>
<PAGE>6
D. THE MARINA LIMITED PARTNERSHIP
Note to Interim Financial Statements
Three Months Ended March 31, 1998, and 1997
(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, 1997 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 March 31, 1998, and for the three months
ended March 31, 1998 and 1997, 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
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS FOR THE THREE MONTH PERIOD ENDED MARCH 31, 1998 AND 1997.
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.
Homesite Sales
During the three months ended March 31, 1998 the Partnership sold six homesites
which compares to six homesites sold in 1997. There were no homesites sold in
Bridgewater compared with two homesites sold in 1997. The Partnership sold two
homesites from Cambridge compared with four homesites sold in 1997. The
Partnership sold four homesites at Morse Overlook in 1998 compared with no
homesites sold 1997.
The Partnership is the general partner of Marina I LP ("Marina I"), which has
developed homesites in Cambridge. During the three months ended March 31, 1998
Marina I sold seven homesites from Cambridge as compared to no homesite sales in
1997.
<PAGE>8
Results of Operations
Three Months ended March 31, 1998
1998 Compared to 1997.
Net earnings increased by $680,000 in 1998 from 1997. This increase was
primarily due to an increase in earnings from the sale of homes and homesites of
$148,000 and increased equity earnings from Marina I of $251,000. Revenue and
earnings increase in this area is due to the sale of one home and an increase in
average homesite price due to a higher proportion of waterfront homesite sales.
Earnings from home and homesite sales were $545,000 in 1998, which compares
to $397,000 in 1997.
The Partnership recognized $255,000 as its share of the earnings from
Marina I in 1998, compared to $4,000 in 1997. This increase is the result of
homesite sales of $2,269,000 in 1998 as compared to $748,000 in 1997, which
reflects the shift in homesite sales to Marina I due to the Partnerships'
homesites in Cambridge being substantially sold.
During 1997, the Partnership sold commercial property held for investment
at Morse Lake for an aggregate $237,000, which resulted in a gain of $234,000.
Other receivables and assets are higher on March 31, 1998 due to the
seasonal increase in inventory of new boats.
As of March 31, 1998, the Partnership collected $819,000 of advance dock
rental toward the 1998 boating season. This is compared to $670,000 collected as
of March 31, 1997. The rental payments are deferred when received and recognized
as earned during the April to September boating season.
On April 3, 1998, the Partnership made a cash distribution to the partners
of record on March 23, 1998, of $3.50 per unit of partnership interest, for a
total of $2,363,000. This compares to a cash distribution of $3.25 per
partnership unit on April 17,1997.
<PAGE>9
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: May 14, 1998
<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
MARCH 31, 1998, 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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 5,989,484
<SECURITIES> 0
<RECEIVABLES> 2,438,629
<ALLOWANCES> 0
<INVENTORY> 4,523,668
<CURRENT-ASSETS> 0
<PP&E> 5,753,339
<DEPRECIATION> 0
<TOTAL-ASSETS> 21,494,067
<CURRENT-LIABILITIES> 1,476,450
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 20,017,617
<TOTAL-LIABILITY-AND-EQUITY> 21,494,067
<SALES> 1,507,529
<TOTAL-REVENUES> 2,172,554
<CGS> 1,075,259
<TOTAL-COSTS> 1,332,744
<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> 839,810
<EPS-PRIMARY> 1.24
<EPS-DILUTED> 1.24
</TABLE>
