[LIVE]
<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 March 31, 1996 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
incorporation or organization) Identification No.)
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
<CAPTION>
Part I - FINANCIAL INFORMATION PAGE #
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<S> <C>
Item 1. Financial Statements (Unaudited)
Balance Sheets 1
March 31, 1996 and December 31, 1995
Statements of Operations 2
Three months ended March 31, 1996 and 1995
Statement of Partners' Equity 3
Three months ended March 31, 1996
Statements of Cash Flows 4
Three months ended March 31, 1996 and 1995
Note to Financial Statements 5
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 6
Part II - OTHER INFORMATION 8
- ---------------------------
SIGNATURES 9
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<TABLE>
SIGNATURE X LTD. LIMITED PARTNERSHIP
Balance Sheets
(Unaudited)
<CAPTION>
March 31, December 31,
1996 1995
ASSETS ---------- ------------
<S> <C> <C>
Current assets:
Cash and short-term cash investments $ 363,693 308,404
Investments held by trustee 1,537 1,463
---------- ----------
Cash and cash equivalents 365,230 309,867
Accounts receivable 56,806 47,290
Other current assets 79,786 74,028
---------- ----------
Total current assets 501,822 431,185
---------- ----------
Property and equipment:
Land 1,693,614 1,693,614
Land improvements 384,346 384,347
Buildings 6,846,695 6,846,694
Furniture and equipment 1,904,283 1,875,612
---------- ----------
10,828,938 10,800,267
Less accumulated depreciation 3,122,706 3,050,739
---------- ----------
Net property and equipment 7,706,232 7,749,528
Furniture and equipment reserves 86,037 87,841
Deferred costs, net of accumulated
amortization of $300,816 and $296,889 118,760 122,687
---------- ----------
$ 8,412,851 8,391,241
========== ==========
LIABILITIES AND PARTNERS' EQUITY
Current liabilities:
Current portion of long-term debt 100,322 104,573
Accounts payable 42,857 25,090
Accrued payroll and related taxes 24,194 34,290
State and local taxes 68,805 57,582
Accrued interest 89,019 22,454
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Total current liabilities 325,197 243,989
Long-term debt, less current portion 5,187,723 5,197,742
Note payable to general partner 2,377,361 2,377,361
Advances from general partner 200,000 200,000
---------- ----------
Total liabilities 8,090,281 8,019,092
Partners' equity 322,570 372,149
---------- ----------
$ 8,412,851 8,391,241
========== ==========
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<TABLE>
SIGNATURE X LTD. LIMITED PARTNERSHIP
Statements of Operations
(Unaudited)
<CAPTION>
Three Months Ended
March 31,
---------------------------
1996 1995
---------- ----------
<S> <C> <C>
Revenue:
Room revenue $ 694,211 577,029
Other hotel revenue 26,912 30,380
Interest 2,658 1,653
----------- -----------
723,781 609,062
Cost and expenses:
Hotel operations 262,577 233,406
Salaries and benefits 204,721 180,232
Management and franchise fees 64,815 54,198
Advertising and reservations 25,206 21,077
Interest 135,878 139,249
Depreciation and amortization 80,163 73,819
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773,360 701,981
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Net loss (49,579) (92,919)
General partner's interest (7,437) (13,938)
----------- -----------
Limited partner's interest $ (42,142) (78,981)
=========== ===========
Number of limited partner 364 364
units outstanding =========== ===========
Limited partners' interest per unit $ (116) (217)
=========== ===========
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<TABLE>
SIGNATURE X LTD. LIMITED PARTNERSHIP
Statement of Partners' Equity
Three months ended March 31, 1996
(Unaudited)
<CAPTION>
General Limited
Partner Partners Total
---------- ---------- ----------
<S> <C> <C> <C>
Balance at December 31, 1995 $ 55,439 316,710 372,149
Net loss (7,437) (42,142) (49,579)
---------- ---------- ----------
Balance at March 31, 1996 $ 48,002 274,568 322,570
========== ========== ==========
Accumulated balances:
Capital contributions 404,445 3,640,000 4,044,445
Offering expenses - (455,000) (455,000)
Net loss (356,443) (2,910,432) (3,266,875)
---------- ---------- ----------
Balance at March 31, 1996 $ 48,002 274,568 322,570
========== ========== ==========
</TABLE>
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<TABLE>
SIGNATURE X LTD. LIMITED PARTNERSHIP
Statements of Cash Flows
Three months ended March 31, 1996 and 1995
(Unaudited)
<CAPTION>
1996 1995
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<S> <C> <C>
Cash flows from operating activities:
Net loss $ (49,579) (92,919)
Items which do not use (provide) cash:
Depreciation of property and equipment 76,236 69,892
Amortization of deferred costs 3,927 3,927
Accrued revenue and other expenses, net 70,185 -
Gain on disposal of property and equipment (134) 98,807
---------- ----------
Net cash provided by operating activities 100,635 79,707
---------- ----------
Cash flows from investing activities:
Additions to furniture and equipment
reserves, net (24,381) -
Proceeds from disposal of property and equipment 134 -
Other additions to property and equipment (6,755) (54,966)
---------- ----------
Net cash used in investing activities (31,002) (54,966)
---------- ----------
Cash flows from financing activities:
Payments on long-term debt (14,270) (12,616)
Advance from general partner - 20,000
---------- ----------
Net cash provided by financing
activities (14,270) 7,384
---------- ----------
Change in cash and cash equivalents 55,363 32,125
---------- ----------
Cash and cash equivalents at beginning
of period 309,867 212,006
---------- ----------
Cash and cash equivalents at end of period $ 365,230 244,131
========== ==========
Additional disclosures:
Interest paid $ 135,669 139,062
========== ==========
Additions to property and equipment
from furniture and equipment reserves $ 26,185 51,626
========== ==========
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SIGNATURE X LTD. LIMITED PARTNERSHIP
NOTE TO FINANCIAL STATEMENTS (UNAUDITED)
MARCH 31, 1996
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, 1996. 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, 1995.
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SIGNATURE X LTD. LIMITED PARTNERSHIP
------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
-----------------------------------------------------------
AND RESULTS OF OPERATIONS
-------------------------
RESULTS OF OPERATIONS
- ---------------------
Certain operating and financial data for the quarter ended March 31, 1996 and
1995 is as follows:
<CAPTION>
Occupancy Average Daily Rate
---------------------- ----------------------
YTD YTD YTD YTD
Hotel 3/31/96 3/31/95 3/31/96 3/31/95
- ----- ------- ------- ------- -------
<S> <C> <C> <C> <C>
Florence 63.5% 59.0% $50.17 $48.83
Chester Road 52.2% 40.8% $55.22 $53.48
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<TABLE>
<CAPTION>
QTD QTD
3/31/96 3/31/95 Change
-------- ------- -------
<S> <C> <C> <C>
Room & Other Hotel Revenues $721,123 $607,409 $113,714
Interest Income $2,658 $1,653 $1,005
Operating & Related Expenses $557,319 $488,913 $68,406
Interest Expense $135,878 $139,249 $(3,371)
Depreciation & Amortization $80,163 $73,819 $6,344
Net Loss $49,579 $92,919 $(43,340)
</TABLE>
Room and other hotel revenues of the two hotels increased for the three month
period ended March 31, 1996 compared to the same period in 1995 due to
increases in occupancy and average room rates.
Operating and related expenses of the hotels consist of the following costs
and expenses - hotel operations, salaries and benefits, management and
franchise fees and advertising and reservation contributions:
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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. These
expenses increased primarily due to the increase in the number of rooms sold
during the first three months of 1996 compared to 1995.
Management and franchise fees increased due to the increase in room and
other hotel revenue for the same periods. 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 increased due to the
increase in room and other hotel revenue for the period.
Interest expense represents interest on hotel mortgage loans, general partner
advances and capitalized equipment lease obligations. During 1995, interest
expense decreased due to the scheduled amortization reduction of the notes.
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.
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PART II - OTHER INFORMATION
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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 VII Ltd. Limited
Partnership
Date May 14, 1996 By
------------ ---------------------------------------
John D. Bontreger, President and C.E.O.
Signature Inns, Inc.
Date May 14, 1996 By
------------ ---------------------------------------
Mark D. Carney, Vice President Finance
and C.F.O.
Signature Inns, Inc.
Date May 14, 1996 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 three months ended March 31,
1996, and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 365,230
<SECURITIES> 0
<RECEIVABLES> 56,806
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 501,822
<PP&E> 10,828,938
<DEPRECIATION> 3,122,706
<TOTAL-ASSETS> 8,412,851
<CURRENT-LIABILITIES> 325,197
<BONDS> 8,090,281
0
0
<COMMON> 322,570
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 8,412,851
<SALES> 0
<TOTAL-REVENUES> 723,781
<CGS> 0
<TOTAL-COSTS> 637,482
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 135,878
<INCOME-PRETAX> (49,579)
<INCOME-TAX> 0
<INCOME-CONTINUING> (49,579)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (49,579)
<EPS-PRIMARY> (116)
<EPS-DILUTED> (116)
</TABLE>
