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<PAGE> U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended June 30, 1995 Commission File Number 33-14003
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SIGNATURE X LTD. LIMITED PARTNERSHIP
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(Exact name of registrant as specified in its charter)
Indiana 35-1687036
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
250 East 96th Street, Suite 450, Indianapolis, Indiana 46240
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(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (317) 581-1111
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Check whether the Registrant (1) has filed all reports required to be filed by
Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months, and (2) has been subject to such filing requirements for
the past 90 days.
Yes X No
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<PAGE>
SIGNATURE X LTD. LIMITED PARTNERSHIP
INDEX
Part I - FINANCIAL INFORMATION
------------------------------
Item 1. Financial Statements (Unaudited)
Balance Sheets
June 30, 1995 and December 31, 1994
Statements of Operations
Three and six months ended June 30, 1995 and 1994
Statement of Partners' Equity
Six months ended June 30, 1995 and year ended
December 31, 1994
Statements of Cash Flows
Six months ended June 30, 1995 and 1994
Note to Financial Statements
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
Part II - OTHER INFORMATION
---------------------------
<PAGE>
<TABLE>
SIGNATURE X LTD. LIMITED PARTNERSHIP
Balance Sheets
(Unaudited)
<CAPTION>
June 30, December 31,
1995 1994
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ASSETS
<S> <C> <C>
Current assets:
Cash and short-term cash investments $ 304,108 208,858
Investments held by trustee 21,708 3,148
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Cash and cash equivalents 325,816 212,006
Accounts receivable 50,116 52,702
Other current assets 87,825 99,944
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Total current assets 463,757 364,652
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Property and equipment:
Land 1,693,614 1,693,614
Land improvements 384,347 384,347
Buildings 6,921,134 6,846,694
Furniture and equipment 1,780,651 1,711,625
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10,779,746 10,636,280
Less accumulated depreciation 2,943,441 2,803,658
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Net property and equipment 7,836,305 7,832,622
Furniture and equipment reserves 48,366 90,524
Deferred costs, net of accumulated
amortization of $289,036 and $281,181 130,540 138,395
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$ 8,478,968 8,426,193
============= =============
LIABILITIES AND PARTNERS' EQUITY
Current liabilities:
Current portion of long-term debt 90,500 89,044
Accounts payable 47,510 24,554
Accrued payroll and related taxes 34,450 31,456
State and local taxes 77,640 55,591
Accrued interest 20,334 23,421
------------ -------------
Total current liabilities 270,434 224,066
Long-term debt, less current portion 5,257,970 5,283,835
Note payable to general partner 2,377,361 2,377,361
Advances from general partner 279,065 259,065
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Total liabilities 8,184,830 8,144,327
Partners' equity 294,138 281,866
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$ 8,478,968 8,426,193
============ =============
</TABLE>
<PAGE>
<TABLE>
SIGNATURE X LTD. LIMITED PARTNERSHIP
Statements of Operations
(Unaudited)
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
------------------------ ------------------------
1995 1994 1995 1994
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
Revenue:
Room revenue $ 808,694 812,258 1,385,723 1,383,891
Other hotel revenue 22,200 26,457 52,580 52,900
Interest 2,233 2,137 3,886 2,814
------------ ----------- ------------ -----------
833,127 840,852 1,442,189 1,439,605
------------ ----------- ------------ -----------
Cost and expenses:
Hotel operations 219,280 238,773 452,686 460,237
Salaries and benefits 191,369 193,725 371,601 338,424
Management and franchise fees 74,504 74,905 128,702 128,181
Advertising and reservations 28,974 29,130 50,051 49,848
Interest 139,991 139,568 279,240 282,824
Depreciation and amortization 73,818 93,705 147,637 187,410
------------ ----------- ------------ -----------
727,936 769,806 1,429,917 1,446,924
------------ ----------- ------------ -----------
Income (loss) before extraordinary gain 105,191 71,046 12,272 (7,319)
Extraordinary gain from debt
restructuring - 660,684 - 660,684
------------ ----------- ------------ -----------
Net income $ 105,191 731,730 12,272 653,365
General partner's interest 15,779 109,760 1,841 98,005
------------ ----------- ------------ -----------
Limited partners' interest $ 89,412 621,970 10,431 555,360
============ =========== ============ ===========
Net income per limited
partner unit $ 245.64 1,708.71 28.66 1,525.71
============ =========== ============ ===========
Average number of limited partner
units outstanding 364 364 364 364
============ =========== ============ ===========
</TABLE>
<PAGE>
<TABLE>
SIGNATURE X LTD. LIMITED PARTNERSHIP
Statement of Partners' Equity
Six months ended June 30, 1995
(Unaudited)
<CAPTION>
General Limited
Partner Partners Total
---------- ---------- ----------
<S> <C> <C> <C>
Balance at December 31, 1994 $ 41,897 239,969 281,866
Net income 1,841 10,431 12,272
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Balance at June 30, 1995 $ 43,738 250,400 294,138
========== ========== ==========
Accumulated balances:
Capital contributions 404,445 3,640,000 4,044,445
Offering expenses - (455,000) (455,000)
Net loss (360,707) (2,934,600) (3,295,307)
---------- ----------- -----------
Balance at June 30, 1995 $ 43,738 250,400 294,138
========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
SIGNATURE X LTD. LIMITED PARTNERSHIP
Statements of Cash Flows
(Unaudited)
Six Months Ended
<CAPTION> June 30
-----------------------------
1995 1994
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<S> <C> <C>
Cash flows from operating activities:
Net income $ 12,272 653,365
Items which do not use (provide) cash:
Depreciation of property and equipment 139,782 179,556
Amortization of deferred costs 7,855 7,853
Extraordinary gain from debt restructuring - (660,684)
Loss on disposal of equipment - 1,204
Accrued revenue and other expenses, net 59,617 (23,825)
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Net cash provided by operating activities 219,526 157,469
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Cash flows from investing activities:
Additions to furniture and equipment reserves, net (75,577) (48,295)
Other additions to property and equipment (25,730) 9,659
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Net cash used in investing activities (101,307) (38,636)
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Cash flows from financing activities:
Payments on long-term debt (24,409) (52,294)
Advance from general partner 20,000 30,000
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Net cash used in financing activities (4,409) (22,294)
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Change in cash and cash equivalents 113,810 96,539
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Cash and cash equivalents at beginning of period 212,006 105,034
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Cash and cash equivalents at end of period $ 325,816 201,573
=========== ===========
Additional disclosures:
Interest paid $ 278,804 287,375
=========== ===========
Additions to property and equipment from
furniture and equipment reserves $ 117,735 88,173
=========== ===========
</TABLE>
<PAGE>
SIGNATURE X LTD. LIMITED PARTNERSHIP
NOTE TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 1995
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information. Accordingly, the financial statements do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for
a fair presentation have been included. Operating results for the interim
period are not necessarily indicative of the results that may be expected for
the year ended December 31, 1995. For further information, refer to the
financial statements included in the Partnership's annual report on Form
10-KSB for the year ended December 31, 1994.
<PAGE>
<TABLE>
SIGNATURE X LTD. LIMITED PARTNERSHIP
------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
---------------------------------------------------------
AND RESULTS OF OPERATIONS
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RESULTS OF OPERATIONS
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<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Occupancy Average Daily Rate
YTD YTD Change YTD YTD Change
6/30/95 6/30/94 6/30/95 6/30/94
Florence 64.9% 66.6% (1.7)% $50.67 $47.55 $3.12
Chester
Road 50.3% 54.4% (4.1)% $54.67 $52.16 $2.51
QTD QTD Percent YTD YTD Percent
6/30/95 6/30/94 Change 6/30/95 6/30/94 Change
Room & Other
Hotel
Revenues $830,894 $838,715 (0.9)% $1,438,303 $1,436,79 10.1%
Interest
Income $2,233 $2,137 4.5% $3,886 $2,814 38.1%
Hotel Operations
and Salaries and
Benefits $410,649 $432,498 (5.1)% $824,287 $798,661 3.2%
Management and
Franchise
Fees $74,504 $74,905 (0.5)% $128,702 $128,181 0.4%
Advertising and
Reserv $28,974 $29,130 (0.5)% $50,051 $49,848 0.4%
Interest
Expense $139,991 $139,568 0.3% $279,240 $282,824 (1.3)%
Depreciation and
Amort $73,818 $93,705 (21.2)% $147,637 $187,410 (21.2)%
Income (loss)
before
extraordinary
gain $105,191 $71,046 48.1% $12,272 ($7,319) (267.7)%
</TABLE>
Room and other hotel revenues of the two hotels were relatively unchanged for
both the three and six month periods ended June 30, 1995 compared to the same
period in 1994 due to decreases in occupancy and increases in average room
rates.
Hotel operations and salaries and benefits represent all of the operational
and administrative costs of operating the hotels, including all payroll,
supply, utilities, maintenance and miscellaneous expenses. Hotel operations
and salaries and benefits increased primarily due to increased employment
advertising, guest transportation and supply costs in 1995 compared to 1994.
<PAGE>
Management and franchise fees changed slightly due to the corresponding change
in room and other hotel revenues for the same periods of 1995 and 1994. These
fees represent amounts paid to Signature Inns, Inc., the general partner of
the Partnership, for property management, accounting services and franchise
fees.
The Partnership contributes to a cooperative advertising and reservation fund
administered by the general partner. Contributions changed slightly due to
the corresponding change in room and other hotel revenues for the periods of
1995 and 1994.
Interest expense represents interest on hotel mortgage loans, general partner
advances and capitalized equipment lease obligations. Interest expense
decreased due to the scheduled amortization reduction of the notes.
A partnership obligation was restructured in June 1994. The note had a
balance of $3,038,045; the balance was reduced to $2,377,361 resulting in an
extraordinary gain from the restructuring of $660,684.
LIQUIDITY AND CAPITAL RESOURCES
The general partner believes that cash generated from the operation of the two
hotels, along with existing cash balances, will provide adequate liquidity for
the Partnership to meet its operating needs during the next twelve months.
<PAGE>
PART II - OTHER INFORMATION
---------------------------
Item 1. Legal Proceedings
See note below
Item 2. Changes in Securities
See note below
Item 3. Default upon Senior Securities
See note below
Item 4. Submission of matters to a Vote of Security Holders
See note below
Item 5. Other Information
See note below
Item 6. Exhibits and Reports on Form 8-K
See note below
NOTE: The response to each of the above items is not
applicable or is in the negative and does not
require a response pursuant to the instructions.
<PAGE>
SIGNATURES
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.
SIGNATURE INNS, INC., General Partner
of Signature X Ltd. Limited Partnership
Date August 10, 1995 By
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John D. Bontreger, President and C.E.O.
Signature Inns, Inc.
Date August 10, 1995 By
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Mark D. Carney, Vice President
Finance and C.F.O.
Signature Inns, Inc.
Date August 10, 1995 By
--------------- ---------------------------------------
Martin D. Brew, Treasurer/Controller
Signature Inns, Inc.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Consolidated Balance Statement and Consolidated Statement of Operations of
Signature X Ltd. Limited Partnership as of and for the six months ended June
30, 1995, and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<S> <C> <C> <C>
<PERIOD-TYPE> 6-MOS YEAR 6-MOS
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1994 DEC-31-1994
<PERIOD-END> JUN-30-1995 DEC-31-1994 JUN-30-1994
<CASH> 325,816 212,006 0
<SECURITIES> 0 0 0
<RECEIVABLES> 50,116 52,702 0
<ALLOWANCES> 0 0 0
<INVENTORY> 0 0 0
<CURRENT-ASSETS> 463,757 364,652 0
<PP&E> 10,779,746 10,636,280 0
<DEPRECIATION> 2,943,441 2,803,658 0
<TOTAL-ASSETS> 8,478,968 8,426,193 0
<CURRENT-LIABILITIES> 270,434 224,066 0
<BONDS> 5,257,970 5,283,835 0
<COMMON> 294,138 281,866 0
0 0 0
0 0 0
<OTHER-SE> 2,656,426 2,636,426 0
<TOTAL-LIABILITY-AND-EQUITY> 8,478,968 8,426,193 0
<SALES> 1,438,303 0 1,436,791
<TOTAL-REVENUES> 1,442,189 0 1,439,605
<CGS> 0 0 0
<TOTAL-COSTS> 1,150,677 0 1,164,100
<OTHER-EXPENSES> 0 0 0
<LOSS-PROVISION> 0 0 0
<INTEREST-EXPENSE> 279,240 0 282,824
<INCOME-PRETAX> 12,272 0 653,365
<INCOME-TAX> 0 0 0
<INCOME-CONTINUING> 12,272 0 653,365
<DISCONTINUED> 0 0 0
<EXTRAORDINARY> 0 0 660,684
<CHANGES> 0 0 0
<NET-INCOME> 12,272 0 653,365
<EPS-PRIMARY> 28.66 0 1,525.71
<EPS-DILUTED> 28.66 0 1,525.71
</TABLE>
