[TEST]
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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 September 30, 1995 Commission File Number 33-14003
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SIGNATURE X LTD. LIMITED PARTNERSHIP
- ------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Indiana 35-1687036
- ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
250 East 96th Street, Suite 450, Indianapolis, Indiana 46240
- ------------------------------------------------------ ------------
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (317) 581-1111
--------------
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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SIGNATURE X LTD. LIMITED PARTNERSHIP
INDEX
Part I - FINANCIAL INFORMATION
- ------------------------------
Item 1. Financial Statements (Unaudited)
Balance Sheets
September 30, 1995 and December 31, 1994
Statements of Operations
Three and nine months ended September 30, 1995 and 1994
Statement of Partners' Equity
Nine months ended September 30, 1995 and year ended
December 31, 1994
Statements of Cash Flows
Nine months ended September 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
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<TABLE>
SIGNATURE X LTD. LIMITED PARTNERSHIP
Balance Sheets
(Unaudited)
<CAPTION>
September 30, December 31,
1995 1994
------------- -------------
<S> <C> <C>
ASSETS
Current assets:
Cash and short-term cash investments $ 438,170 208,858
Investments held by trustee 98,816 3,148
------------- -------------
Cash and cash equivalents 536,986 212,006
Accounts receivable 62,226 52,702
Other current assets 76,059 99,944
------------- -------------
Total current assets 675,271 364,652
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Property and equipment:
Land 1,693,614 1,693,614
Land improvements 384,346 384,347
Buildings 6,926,421 6,846,694
Furniture and equipment 1,777,248 1,711,625
------------- -------------
10,781,629 10,636,280
Less accumulated depreciation 2,999,864 2,803,658
------------- -------------
Net property and equipment 7,781,765 7,832,622
Furniture and equipment reserves 76,516 90,524
Deferred costs, net of accumulated
amortization of $292,962 and $281,181 126,614 138,395
------------- -------------
$ 8,660,166 8,426,193
============= =============
LIABILITIES AND PARTNERS' EQUITY
Current liabilities:
Current portion of long-term debt 90,500 89,044
Accounts payable 52,144 24,554
Accrued payroll and related taxes 21,655 31,456
State and local taxes 96,861 55,591
Accrued interest 87,696 23,421
------------ -------------
Total current liabilities 348,856 224,066
Long-term debt, less current portion 5,245,830 5,283,835
Note payable to general partner 2,377,361 2,377,361
Advances from general partner 259,065 259,065
------------ -------------
Total liabilities 8,231,112 8,144,327
Partners' equity 429,054 281,866
------------ -------------
$ 8,660,166 8,426,193
============ =============
</TABLE>
<PAGE>
<TABLE>
SIGNATURE X LTD. LIMITED PARTNERSHIP
Statements of Operations
(Unaudited)
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
------------------------------------- --------------------------------
1995 1994 1995 1994
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
Revenue:
Room revenue $ 989,679 927,559 2,375,402 2,311,450
Other hotel revenue 14,697 24,782 67,277 77,682
Interest 4,055 2,597 7,941 5,411
------------ ----------- ------------ -----------
1,008,431 954,938 2,450,620 2,394,543
------------ ----------- ------------ -----------
Cost and expenses:
Hotel operations 307,657 301,445 760,343 761,682
Salaries and benefits 227,718 209,043 599,319 547,467
Management and franchise fees 90,235 85,375 218,937 213,556
Advertising and reservations 35,091 33,201 85,142 83,049
Interest 138,996 141,533 418,236 424,357
Depreciation and amortization 73,818 93,705 221,455 281,115
------------ ----------- ------------ -----------
873,515 864,302 2,303,432 2,311,226
------------ ----------- ------------ -----------
Income (loss) before extraordinary gain 134,916 90,636 147,188 83,317
Extraordinary gain from debt
restructuring - - - 660,684
------------ ----------- ------------ -----------
Net income $ 134,916 90,636 147,188 744,001
General partner's interest 20,237 13,595 22,078 111,600
------------ ----------- ------------ -----------
Limited partner's interest $ 114,679 77,041 125,110 632,401
============ =========== ============ ===========
Net income per limited
partner unit $ 315 212 344 1,737
============ =========== ============ ===========
Average number of limited partner
units outstanding 364 364 364 364
============ =========== ============ ===========
</TABLE>
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<TABLE>
SIGNATURE X LTD. LIMITED PARTNERSHIP
Statement of Partners' Equity
Nine Months ended September 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 22,078 125,110 147,188
---------- ---------- ----------
Balance at September 30, 1995 $ 63,975 365,079 429,054
========== ========== ==========
Accumulated balances:
Capital contributions 404,445 3,640,000 4,044,445
Offering expenses - (455,000) (455,000)
Net loss (340,470) (2,819,921) (3,160,391)
---------- ----------- -----------
Balance at September 30, 1995 $ 63,975 365,079 429,054
========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
SIGNATURE X LTD. LIMITED PARTNERSHIP
Statements of Cash Flows
(Unaudited)
<CAPTION>
Nine Months Ended
September 30
-----------------------------
1995 1994
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 147,188 744,001
Items which do not use (provide) cash:
Depreciation of property and equipment 209,674 269,334
Amortization of deferred costs 11,781 11,781
Extraordinary gain from debt restructuring - (660,684)
Loss on disposal of equipment 3,644 1,205
Change in accrued interest payable 64,275 55,378
Accrued revenue and other expenses, net 73,420 7,970
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Net cash provided by operating activities 509,982 428,985
----------- -----------
Cash flows from investing activities:
Additions to furniture and equipment reserves, net (117,875) (69,786)
Other additions to property and equipment (30,803) -
Proceeds from sale of assets 225 -
----------- -----------
Net cash used in investing activities (148,453) (69,786)
----------- -----------
Cash flows from financing activities:
Payments on long-term debt (36,549) (65,684)
Advance from general partner 30,000 30,000
Repayment to general partner (30,000) (30,000)
----------- -----------
Net cash used in financing activities (36,549) (65,684)
----------- -----------
Change in cash and cash equivalents 324,980 293,515
----------- -----------
Cash and cash equivalents at beginning of period 212,006 105,034
----------- -----------
Cash and cash equivalents at end of period $ 536,986 398,549
=========== ===========
Additional disclosures:
Interest paid $ 418,236 424,357
=========== ===========
Additions to property and equipment from
furniture and equipment reserves $ 131,883 49,725
=========== ===========
</TABLE>
<PAGE>
SIGNATURE X LTD. LIMITED PARTNERSHIP
NOTE TO FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 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
-------------------------
RESULTS OF OPERATIONS
- ---------------------
<CAPTION>
Occupancy Average Daily Rate
YTD YTD Change YTD YTD Change
9/30/95 9/30/94 9/30/95 9/30/94
<S> <C> <C> <C> <C> <C> <C>
Florence 70.1% 69.9% 0.2% $52.02 $48.83 $3.19
Chester
Road 58.3% 60.6% (2.3)% $55.02 $53.57 $1.45
QTD QTD Percent YTD YTD Percent
9/30/95 9/30/94 Change 9/30/95 9/30/94 Change
<S> <C> <C> <C> <C> <C> <C>
Room & Other
Hotel
Revenues $1,004,376 $952,341 5.5% $2,442,679 $2,389,132 2.2%
Interest
Income $4,055 $2,597 56.1% $7,941 $5,411 46.8%
Hotel Operations
and Salaries and
Benefits $535,375 $510,488 4.9% $1,359,662 $1,309,149 3.9%
Management and
Franchise
Fees $90,235 $85,375 5.7% $218,937 $213,556 2.5%
Advertising and
Reserv $35,091 $33,201 5.7% $85,142 $83,049 2.5%
Interest
Expense $138,996 $141,533 (1.8)% $418,236 $424,357 (1.4)%
Depreciation and
Amort $73,818 $93,705 (21.2)% $221,455 $281,115 (21.2)%
Income (loss)
before
extraordinary
gain $134,916 $90,636 48.9% $147,188 $83,317 76.7%
</TABLE>
Room and other hotel revenues of the two hotels were relatively unchanged for
both the three and nine month periods ended September 30, 1995 compared to the
same period in 1994 due to the combined effect of a decrease 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 November 10, 1995 By
----------------- ---------------------------------------
John D. Bontreger, President and C.E.O.
Signature Inns, Inc.
Date November 10, 1995 By
----------------- ---------------------------------------
Mark D. Carney, Vice President
Finance and C.F.O.
Signature Inns, Inc.
Date November 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 three month period ended
September 30, 1995, and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 536,986
<SECURITIES> 0
<RECEIVABLES> 62,226
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 675,271
<PP&E> 10,781,629
<DEPRECIATION> 2,999,864
<TOTAL-ASSETS> 8,660,166
<CURRENT-LIABILITIES> 348,856
<BONDS> 7,882,256
<COMMON> 0
0
0
<OTHER-SE> 429,054
<TOTAL-LIABILITY-AND-EQUITY> 8,660,166
<SALES> 0
<TOTAL-REVENUES> 1,008,431
<CGS> 0
<TOTAL-COSTS> 660,701
<OTHER-EXPENSES> 73,818
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 138,996
<INCOME-PRETAX> 134,916
<INCOME-TAX> 0
<INCOME-CONTINUING> 134,916
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 134,916
<EPS-PRIMARY> 370.65
<EPS-DILUTED> 370.65
</TABLE>
