<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
[ ] TRANSITION REPORT UNDER SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission File Number 0-17602
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Chrisken Partners Cash Income Fund L.P.
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(Exact name of small business issuer as Specified in its
certificate of Limited partnership)
Delaware 36-3521124
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
345 North Canal Street, Chicago, Illinois 60606
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(Address of principal executive offices) (Zip Code)
(312) 454-1626
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(Issuer's telephone number)
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(Former name, former address and formal fiscal year, if changed since last
report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act during the past 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
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CHRISKEN PARTNERS CASH INCOME FUND L.P.
INDEX
PAGE
PART I FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Consolidated Balance Sheet at
September 30, 1995 2
Consolidated Statements of Income
for the Three Months and Nine Months
Ended September 30, 1995 and 1994 3
Consolidated Statement of Partners'
Capital for the Nine Months Ended
September 30, 1995 4
Consolidated Statements of Cash Flows For
the Nine Months Ended September 30, 1995
and 1994 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis or
Plan of Operation 7
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 10
Item 2. Changes in Securities 10
Item 3. Defaults Upon Senior Securities 10
Item 4. Submissions of Matters to a Vote of
Security Holders 10
Item 5. Other Information 10
Item 6. Exhibits and Reports on Form 8-K 10
SIGNATURE
1
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Chrisken Partners Cash Income Fund L.P.
(A DELAWARE LIMITED PARTNERSHIP)
Consolidated Balance Sheet
September 30, 1995
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Cash and cash equivalents $ 655,239
Restricted cash 377,320
Accounts receivable 22,438
Prepaid expenses 10,828
------------
1,065,825
Investment in real estate, at cost:
Land 2,220,195
Buildings and improvements 13,776,620
Equipment 282,426
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16,279,241
Accumulated depreciation (3,547,353)
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12,731,888
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Total assets $ 13,797,713
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LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 62,206
Deferred income and prepaid rent 81,054
Accrued real estate taxes 332,556
Tenants' security deposits 59,978
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Total liabilities 535,794
Partners' capital, 37,732 limited partnership units
issued and outstanding 13,261,919
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Total liabilities and partners' capital $ 13,797,713
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</TABLE>
SEE ACCOMPANYING NOTE.
2
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Chrisken Partners Cash Income Fund L.P.
(A DELAWARE LIMITED PARTNERSHIP)
Consolidated Statements of Income
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
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1995 1994 1995 1994
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<S> <C> <C> <C> <C>
REVENUE
Rental $579,425 $544,282 $1,705,797 $1,622,448
Interest 7,372 7,169 23,527 19,259
Other 38,870 39,161 109,255 118,526
-----------------------------------------------
Total revenue 625,667 583,443 1,838,579 1,740,974
EXPENSES
Property operations and maintenance 96,582 148,321 324,573 397,331
Depreciation and amortization 125,187 114,831 375,563 344,156
General and administrative 174,246 230,406 587,821 668,686
Management fees -- Affiliate 32,706 30,393 94,478 91,317
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Total expenses 428,721 523,951 1,382,435 1,501,490
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Net income $ 196,946 $ 66,661 $ 456,144 $ 258,743
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Net income allocated to general partners $ 19,685 $ 6,666 $ 45,614 $ 25,874
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Net income allocated to limited partners $ 177,251 $ 59,995 $ 410,530 $ 232,869
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Net income allocated to limited partners per limited
partnership unit outstanding $ 4.70 $ 1.59 $ 10.88 $ 6.17
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Limited partnership units outstanding 37,732 37,732 37,732 37,732
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</TABLE>
SEE ACCOMPANYING NOTE.
3
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Chrisken Partners Cash Income Fund L.P.
(A Delaware Limited Partnership)
Consolidated Statement of Partners' Capital
Nine months ended September 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
PARTNER CAPITAL ACCOUNTS
---------------------------------
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
---------------------------------
<S> <C> <C> <C>
Balance at December 31, 1994 $210,379 $13,089,123 $13,299,502
Distributions (A) - (493,727) (493,727)
Net income 45,614 410,530 456,144
-----------------------------------
Balance at September 30, 1995 $255,993 $13,005,926 $13,261,919
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</TABLE>
(A) Summary of 1995 quarterly cash distributions paid per
limited partnership unit:
First quarter $4.41
Second quarter 4.31
Third quarter 4.37
SEE ACCOMPANYING NOTE.
4
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Chrisken Partners Cash Income Fund L.P.
(A DELAWARE LIMITED PARTNERSHIP)
Consolidated Statements of Cash Flows
(UNAUDITED)
NINE MONTHS ENDED
SEPTEMBER 30
-------------------------
1995 1994
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CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 456,144 $ 258,743
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization 375,563 344,156
Bad debt expense 14,218 60,596
Net changes in operating assets and
liabilities:
Increase in accounts receivable (27,240) (24,260)
Increase in prepaid expenses (6,419) (9,300)
Decrease in accounts payable and accrued
expenses (78,223) (101,314)
Increase (decrease) in deferred income
and prepaid rent (7,605) 20,927
Increase (decrease) in tenants' security (89) 1,383
deposits
Decrease in due to affiliates (3,917) (3,825)
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Net cash provided by operating activities 722,432 547,106
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (405,941) (59,004)
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Cash used in investing activities (405,941) (59,004)
CASH FLOWS FROM FINANCING ACTIVITIES
Distributions to partners (493,727) (497,657)
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Cash used in financing activities (493,727) (497,657)
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Net decrease in cash and cash equivalents (177,236) (9,555)
Cash and cash equivalents, beginning of 832,475 1,157,891
period -------------------------
Cash and equivalents, end of period $655,239 $1,148,336
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SEE ACCOMPANYING NOTE.
5
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Chrisken Partners Cash Income Fund L.P.
(A DELAWARE LIMITED PARTNERSHIP)
Note to Consolidated Financial Statements
1. INTERIM ACCOUNTING POLICIES
The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted
accounting principles for interim financial information and
with the instructions to Form 10-QSB and 310(b) of
Regulation of S-B. Accordingly, they do not include all of
the information and footnotes required by generally accepted
accounting principles for complete financial statements.
The consolidated financial statements are the representation
of the General Partners and reflect all adjustments which
are, in the opinion of the General Partners, necessary for a
fair presentation of the financial position and results of
operations of the Partnership. The General Partners believe
that all such adjustments are normal and recurring. For
further information, refer to the consolidated financial
statements and notes thereto included in the Partnership's
Annual Report on Form 10-KSB for the year ended December 31,
1994.
6
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Chrisken Partners Cash Income Fund L.P. (CPCIF or the Partnership) is a
Delaware limited partnership organized on May 4, 1987, with Chrisken Income
Properties, Inc. (Managing General Partner) and Chrisken Limited Partnership I
as General Partners. Pursuant to a public offering (the Offering), CPCIF sold
37,732 limited partnership units. CPCIF has 99.99% ownership interests in
Springdale Associates Limited Partnership and Chicago I Self-Storage Limited
Partnership. Springdale Associates Limited Partnership owns a 199-unit
residential complex located in Waukesha, Wisconsin (Springdale Apartments), and
Chicago I Self-Storage Limited Partnership owns a 155,997 square foot self-
storage facility located in Chicago, Illinois (Gold Coast Storage).
LIQUIDITY AND CAPITAL RESOURCES
The Partnership had cash and cash equivalents of $655,239 and $832,475 as
of September 30, 1995 and December 31, 1994, respectively. The reduction in
cash and cash equivalents is primarily due to capital improvement expenditures
and reductions in accounts payable. Restricted cash represents operating and
contingency reserves (Reserve) equal to approximately 2% of the gross proceeds
of the Offering ($377,320 at September 30, 1995 and December 31, 1994) as
required by the Limited Partnership Agreement. The Reserve is available for
unanticipated contingencies and repairs at Springdale Apartments and Gold Coast
Storage (collectively the "Specified Properties"). The General Partners believe
the current amount of the Reserve is adequate to satisfy cash requirement needs.
RESULTS OF OPERATIONS
Occupancy at the Springdale Apartments was 94% at September 30, 1995, 95%
at December 31, 1994, and 97% at September 30, 1994. While occupancy of the
units remained relatively stable, rental rates have moderately increased. The
General Partners believe that occupancy at Springdale Apartments will remain
between 95 - 98% for the remainder of 1995.
Occupancy at Gold Coast Storage was 81% at September 30, 1995, 83% at
December 31, 1994, and 86% at September 30, 1994. During the second quarter of
1995 the Partnership began converting approximately 4,000 square feet of
undivided storage space that had been previously occupied rent free by a
charitable, not-for-profit organization. After conversion, the space yielded
approximately 2,900 square feet of revenue generating space, of which
approximately 92% had been leased as of September 30, 1995.
Management continues to aggressively market both apartment units at
Springdale Apartments and lease space at Gold Coast Storage in order to increase
occupancy percentages, and rental rates, at both locations. Management
anticipates occupancy at both Properties to remain stable during 1996.
Rental and other revenue of $1,175,636 for Springdale Apartments for the
nine months ended September 30, 1995 increased 2.7% from rental revenue of
$1,144,142 for the nine months ended September 30, 1994. The increase in rental
revenue resulted from an increase in rental rates of approximately 2.1%,
increased sundry income, and reduced employee apartment unit benefits partially
offset by higher vacancy loss. The General Partners anticipate that rental
revenues will maintain at this level through the remainder of 1995 with an
overall increase in rental
7
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rates for the year. Rental and other revenue at Gold Coast Storage increased by
7.1% from $596,832 for the nine months ended September 30, 1994 to $639,416 for
the nine months ended September 30, 1995 primarily due to an increase in rental
rates of approximately 5.3% and income generating space as discussed above. The
General Partners believe that rental revenue at Gold Coast Storage will remain
relatively stable over the next few years. Overall rental revenue for the nine
months ended September 30, 1995 of $1,815,052 increased by 4.2% from the nine
months ended September 30, 1994 of $1,740,974 primarily as a result of higher
rental rates at both Springdale Apartments and Gold Coast Storage.
Expenses for the nine months ended September 30, 1995, attributable to
Springdale Apartments of $794,862 were 6.2% lower than expenses for the nine
months ended September 30, 1994 of $847,690 due primarily to decreased property
operating and maintenance expenses as the result of the capitalization of
certain expenditures in 1995 that had been treated as expenses on an interim
reporting basis in 1994, lower apartment redecorating expenses, and reduced
grounds and maintenance costs. General and administrative expenses also are
lower in 1995 as compared to 1994 as the result of reduced advertising and
marketing costs, and decreased real estate tax expense as the result of a
successful assessment valuation appeal. Depreciation expense is higher in 1995
as compared to 1994 due to capital expenditures in both periods. Expenses
attributable to Gold Coast Storage for the nine months ended September 30, 1995
of $522,505 decreased by approximately 10.6% from the nine months ended
September 30, 1994 of $584,376. Property operating and maintenance expenses are
lower in 1995 as compared to 1994 primarily due to lower heating fuel costs as
the result of the installation of new windows and building tuck pointing offset
by higher dock attendant/elevator operator payroll costs. Several other
property and maintenance expense items are marginally lower in 1995, but none
the less contribute to the overall reduction in this category as compared to
1994. The cost to convert the aforementioned 4,000 square feet of storage
space, although minimal, somewhat negates these expense reductions. General and
administrative expenses are lower in 1995 as compared to 1994 primarily due to
significantly reduced bad debt expense. In 1994 Gold Coast recognized several
significant tenant receivable balances as uncollectible. Efforts to minimize
such events via enhanced new applicant credit checks, and lockout and collection
procedures have proved effective in reducing this expense in 1995. Other
general and administrative expenses, such as advertising and marketing, data
processing, telephone, and general supplies are lower in 1995 as compared to
1994 as the result of continuing cost containment measures. Gold Coast
depreciation expense is marginally higher in 1995 as the result of capital
improvement expenditures in 1994. Overall expenses for the nine months ended
September 30, 1995 of $1,317,367 decreased by approximately 8% from the nine
months ended September 30, 1994 of $1,432,066 primarily as a result of a
combination of the foregoing factors affecting the Specified Properties.
Management anticipates expenses to continue to be lower in 1995 than in 1994.
Management anticipates expenses in 1996 to be similar to those experience in
1995.
Net income for the nine months ended September 30, 1995 of $380,774 from
Springdale Apartments increased by approximately 28.4% from the nine months
ended September 30, 1994 of $296,452 due primarily to increased rental revenue
and decreased property operating and maintenance expenses. Net income for the
nine months ended September 30, 1995 of $116,911 from Gold Coast Storage
increased by 935% compared to a net income for the nine months ended September
30, 1994 of $12,456 due to increased rental revenue, reduced bad debt and
general administrative expenses, and decreased property operating and
maintenance expenses.
8
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Interest income earned by the Partnership for the nine months ended
September 30, 1995 of $23,527 increased by approximately 22% from the nine
months ended one year earlier of $19,259 primarily due to higher interest rates.
Administrative expenses incurred by the Partnership for the nine months ended
September 30, 1995 of $65,068 decreased by approximately 6.3% as the result of
reduced third party accounting and audit fees, and legal fees.
Overall net income for the nine months ended September 30, 1995 of $456,144
increased by approximately 76% from the nine months ended September 30, 1994 of
$258,743 due to increased rental revenue at both of the Specified Properties and
overall reduced property operating and maintenance, and general and
administrative expenses partially offset by higher depreciation expense.
Net cash provided by operations for the nine months ended September 30,
1995 was $742,432 compared to net cash provided by operations of $547,106 for
the nine months ended September 30, 1994. The change was primarily the result
of increased net income during the nine months ended September 30, 1995, offset
by a decrease in accounts payable and accrued expenses, and an increase in
accounts receivable. Capital expenditures at both Properties increased to
$405,941 for the nine months ended September, 30, 1995 compared to $59,004 for
the same period one year ago. Capital expenditures at Springdale Apartments
included replacement of twisted steel beam supports which threatened building
and resident safety, and the replacement of dated and worn appliances and
carpeting. Additional capital expenditures at Springdale Apartments scheduled
to begin during the fourth quarter of 1995 and completed during the first half
of 1996 include exterior siding, exterior window shutter, and gutter
replacement. Capital expenditures at Gold Coast included the completion of the
window replacement program which began in the fourth quarter, 1994, and the
replacement of building roofs. Management does not anticipate additional
significant capital expenditures at Gold Coast for the remainder of 1995 or
during 1996. Distributions to Limited Partners during the nine months ended
September 30, 1995 totalled $493,727 compared to distributions of $497,657
during the nine months ended September 30, 1994. The General Partners
anticipate that distributions to Limited Partners will remain relatively stable
throughout 1995, provided that revenues and expenses also remain stable.
9
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CHRISKEN PARTNERS CASH INCOME FUND L.P.
(A DELAWARE LIMITED PARTNERSHIP)
Items 1 through 5 are omitted because of the absence of conditions under
which they are required.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) No exhibits are being filed with this Report.
10
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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 thereto duly authorized.
Chrisken Partners Cash Income Fund L.P.
---------------------------------------
(Registrant)
By: Chrisken Income Properties
Inc., Managing General
Partner
Date: November 10, 1995 By:/s/John F. Kennedy
-------------------------
John F. Kennedy
Director and President
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 1032559
<SECURITIES> 0
<RECEIVABLES> 22438
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1065825
<PP&E> 16279241
<DEPRECIATION> 3547353
<TOTAL-ASSETS> 13797713
<CURRENT-LIABILITIES> 535794
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 13261919
<TOTAL-LIABILITY-AND-EQUITY> 13797713
<SALES> 1705797
<TOTAL-REVENUES> 1838579
<CGS> 0
<TOTAL-COSTS> 1382435
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 456144
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 10.88
<EPS-DILUTED> 0
</TABLE>
