<PAGE> 1
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 March 31, 1996
[ ] 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
March 31, 1996 2
Consolidated Statements of Income
for the Three Months Ended
March 31, 1996 and 1995 3
Consolidated Statement of Partners'
Capital for the Three Months Ended
March 31, 1996 4
Consolidated Statements of Cash Flows for
the Three Months Ended March 31, 1996
and 1995 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis or
Plan of Operation 7
PART II. Other Information
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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
March 31, 1996
(Unaudited)
<TABLE>
<S> <C>
ASSETS
Cash and cash equivalents $ 475,948
Restricted cash 377,320
Accounts receivable 23,602
Prepaid expenses 26,997
-----------
903,867
Investment in real estate, at cost:
Land 2,220,195
Buildings and improvements 13,955,552
Equipment 310,394
-----------
16,486,141
Accumulated depreciation (3,812,653)
-----------
12,673,488
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Total assets $13,577,355
===========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 48,816
Tenants' security deposits 60,006
Deferred income and prepaid rent 88,412
Accrued real estate taxes 215,852
-----------
Total liabilities 413,086
Partners' capital, 37,732 limited partnership units
issued and outstanding 13,164,269
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Total liabilities and partners' capital $13,577,355
===========
</TABLE>
See accompanying note.
2
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Chrisken Partners Cash Income Fund L.P.
(A Delaware Limited Partnership)
Consolidated Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31
1996 1995
--------------------------
<S> <C> <C>
REVENUE
Rental $587,491 $561,082
Interest income 9,374 9,282
Other 36,009 35,212
--------------------------
Total revenue 632,874 605,576
EXPENSES
Property operations and maintenance 126,711 124,487
Depreciation and amortization 129,985 125,189
General and administrative 213,857 228,831
Management fees - Affiliate 31,460 31,740
--------------------------
Total expenses 502,013 510,247
--------------------------
Net income $130,861 $ 95,329
==========================
Net income allocated to general partners $ 13,086 $ 9,533
==========================
Net income allocated to limited partners $117,775 $ 85,796
==========================
Net income allocated to limited
partners per limited
partnership unit outstanding $ 3.12 $ 2.27
==========================
Limited partnership units outstanding 37,732 37,732
==========================
</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
Three months ended March 31, 1996
(Unaudited)
<TABLE>
PARTNER CAPITAL ACCOUNTS
----------------------------------------
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
----------------------------------------
<S> <C> <C> <C>
Balance at December 31, 1995 $268,796 $12,954,764 $13,223,560
Distributions (A) - (190,152) (190,152)
Net income 13,086 117,775 130,861
----------------------------------------
Balance at March 31, 1996 $281,882 $12,882,387 $13,164,269
========================================
</TABLE>
(A) Cash distributions paid per limited partnership unit were $5.04
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)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31
1996 1995
------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 130,861 $ 95,329
Adjustments to reconcile net income to net cash
(used in) provided by operating activities:
Depreciation and amortization 129,985 125,189
Bad debt expense -- 8,283
Net changes in operating assets and liabilities:
Increase in accounts receivable (11,168) (10,131)
(Increase) decrease in prepaid expenses 2,746 (27,009)
Decrease in accounts payable and accrued
expenses (126,847) (263,274)
Increase in deferred income and prepaid rent 7,972 2,169
Increase (decrease) in tenants' security
deposits (1,292) 4,408
Decrease in due to affiliates -- (3,917)
------------------------
Net cash (used in) provided by operating activities 132,257 (68,953)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (129,544) (212,700)
------------------------
Cash used in investing activities (129,544) (212,700)
CASH FLOWS FROM FINANCING ACTIVITIES
Distributions to partners (190,152) (166,385)
------------------------
Cash used in financing activities (190,152) (166,385)
-----------------------
Net decrease in cash and cash equivalents (187,439) (448,038)
Cash and cash equivalents, beginning of period 663,387 832,475
------------------------
Cash and equivalents, end of period $ 475,948 $ 384,437
========================
</TABLE>
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
Regulations 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, 1995.
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 $475,948 and $663,387
as of March 31, 1996 and December 31, 1995, 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 March 31, 1996 and December 31, 1995) 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.
On March 4, 1996, Equity Resource Fund XVIII (Fund XVIII), which is
not affiliated with the Partnership or its General Partners, submitted an
unsolicited offer to the Partnership's limited partners to purchase up to 1800
Units of the Partnership. As of the close of the Fund XVIII offer period,
April 4, 1996, the Partnership's records indicate that 258.0863 Units were sold
by limited partners to Fund XVIII. On March 13, 1996 the General Partners
submitted an offer to the limited partners whereby CPCIF would purchase up to
1800 Units of the Partnership. As of the close date of the CPCIF offer, April
15, 1996, the Partnership's records indicate that 422.8684 Units were purchased
by CPCIF. The cost of the Units purchased by CPCIF, $48,629.87, was disbursed
during April and May, 1996. Management believes that neither the Unit sales to
Fund XVIII nor the Unit purchases by CPCIF adversely affect the management or
liquidity of the Partnership.
Results of Operations
Occupancy at the Springdale Apartments was 93% at March 31, 1996, 96%
at December 31, 1995, and 97% at March 31, 1995. 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 93 - 95% for the remainder of 1996.
Occupancy at Gold Coast Storage was 82% at March 31, 1996, 81% at
December 31, 1995, and 86% at March 31, 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.
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Rental and other revenue of $385,566 for Springdale Apartments for the
three months ended March 31, 1996 decreased 2% from rental revenue of $393,941
for the three months ended March 31, 1995. The decrease in rental revenue
resulted from an increase in rental rates of approximately 1%, offset by a
increase in vacancy loss, higher employee unit benefits and model unit loss in
1996. The General Partners anticipate that rental revenues will maintain at
this level through the remainder of 1996 with an overall increase in rental
rates for the year. Rental and other revenue at Gold Coast Storage increased
by approximately 17% from $202,353 for the three months ended March 31, 1995 to
$237,934 for the three months ended March 31, 1996 primarily due to an increase
in rental rates of approximately 10%, a reduction in vacancy loss and increased
sundry income. The General Partners believe that rental revenue at Gold Coast
Storage will remain relatively stable over the next few years. Overall rental
and other revenue for the three months ended March 31, 1996 of $632,500
increased by 4.6% from the three months ended March 31, 1995 of $596,294 due to
the factors detail above affecting the Specified Properties.
Expenses for the three months ended March 31, 1996, attributable to
Springdale Apartments of $272,016 were approximately 5% higher than expenses
for the three months ended March 31, 1995 of $259,384 due primarily to
increased property operating and maintenance, and depreciation and amortization
expenses, offset by lower general and administrative expenses. Property
operating and maintenance expenses are higher due to higher carpet replacement
expenses which were capitalized during the quarter ended March 31, 1995, higher
janitorial, general maintenance, and painting and decorating costs due to
higher vacancy during the current quarter and compared to the same period one
year earlier, offset by lower utility costs, specifically heating fuels.
Depreciation expense is higher in 1996 as compared to 1995 due to capital
expenditures in 1995. General and administrative expenses are lower for the
quarter ended March 31, 1996 and compared to the same period one year earlier
due to lower real estate taxes as the result of a successful assessment
valuation appeal which benefits the current period and a timing difference in
the payment of Wisconsin income taxes during the first quarter of 1996 as
compared to being paid during the second quarter of 1995, offset by higher
office staff and related employer costs due to the higher vacancy which calls
for extended office hours for marketing purposes. Expenses attributable to
Gold Coast Storage for the three months ended March 31, 1996 of $187,810
decreased by approximately 5% from the three months ended March 31, 1995 of
$198,254 due to lower property operations and maintenance, and general and
administrative expenses, offset by higher depreciation expense. Property
operating and maintenance expenses are lower in 1996 as compared to 1995
primarily due to lower heating fuel costs as the result of the installation of
new windows and building tuck pointing, lower dock attendant/elevator operator
payroll costs, and boiler system repair costs incurred in the first quarter of
1995 which were not incurred in the current period, offset by higher
electricity costs due to an erroneous meter reading in the fourth quarter of
1995. Depreciation expense is higher in 1996 as compared to 1995 due to
capital expenditures in 1995. General and administrative expenses are lower in
1996 as compared to 1995 primarily due to lower office staff payroll and
related employer costs, property insurance costs, and real estate taxes due to
a successful real estate tax assessment appeal, offset by higher advertising
and higher bad debt expense. Overall expenses incurred by the Specified
Properties for the three months ended March 31, 1996 of $459,826 increased by
approximately less than 1% from the three months ended March 31, 1995 of
$457,638 primarily as a result of a combination of the foregoing factors
affecting the Specified Properties. Management
8
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anticipates that, in aggregate, expenses in 1996 to be similar to those
experienced in 1995.
Net income for the three months ended March 31, 1996 of $113,550 from
Springdale Apartments decreased by approximately 16% from the three months
ended March 31, 1995 of $134,557 due primarily to decreased rental revenue and
increased property operating and maintenance, and depreciation expenses. Net
income for the three months ended March 31, 1996 of $50,124 from Gold Coast
Storage increased significantly as compared to a net income for the three
months ended March 31, 1995 of $4,099 due to increased rental revenue,
decreased property operating and maintenance, general and administrative
expenses offset by higher depreciation expense.
Interest income earned by the Partnership for the three months ended
March 31, 1996 of $9,374 increased by approximately 1% from the three months
ended one year earlier of $9,282 primarily due to higher interest rates.
Administrative expenses incurred by the Partnership for the three months ended
March 31, 1996 of $42,187 decreased by approximately 20% from the three months
ended one year earlier of $52,609 as the result of reduced third party
accounting and audit fees.
Overall net income for the three months ended March 31, 1996 of
$130,861 increased by approximately 37% from the three months ended March 31,
1995 of $95,329 due to decreased rental revenue at Springdale Apartments and
increased rental revenue at Gold Coast Storage and overall stable expenses at
the Specified Properties, and reduced Partnership administrative expenses.
Net cash provided by operations for the three months ended March 31,
1996 was $132,257 compared to net cash provided by operations of $68,953 for
the three months ended March 31, 1995. The change was primarily the result of
increased net income during the three months ended March 31, 1996, offset by a
decrease in accounts payable and accrued expenses, and an increase in accounts
receivable. Capital expenditures at both Properties decreased to $129,544 for
the three months ended March, 31, 1996 compared to $212,700 for the same period
one year ago. Capital expenditures at Springdale Apartments included
completion of the exterior siding replacement project commenced in 1995, and
the replacement of dated and worn appliances. There were no capital
expenditures at Gold Coast Storage during the first quarter of 1996.
Distributions to Limited Partners during the three months ended March 31, 1996
totalled $190,152 compared to distributions of $166,385 during the three months
ended March 31, 1995. The General Partners anticipate that distributions to
Limited Partners will remain relatively stable throughout 1996, provided that
revenues and expenses also remain stable.
"Safe Harbor" statement under the U.S. Private Securities Litigation
Reform Act of 1995: some statements in this Form 10-Q are forward looking and
actual results may differ materially from those stated. As discussed herein,
among the factors that may affect actual results are changes in rental rates,
occupancy levels in the market place in which the Springdale Apartments and
Gold Coast Storage compete and/or unanticipated changes in expenses or capital
expenditures.
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: May 14, 1996 By:/s/John F. Kennedy
-------------------
John F. Kennedy
Director and President
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<CURRENCY>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<EXCHANGE-RATE> 1
<CASH> 853,268
<SECURITIES> 0
<RECEIVABLES> 23,602
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 903,867
<PP&E> 16,486,141
<DEPRECIATION> 3,812,653
<TOTAL-ASSETS> 13,577,355
<CURRENT-LIABILITIES> 413,086
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 13,164,269
<TOTAL-LIABILITY-AND-EQUITY> 13,577,355
<SALES> 587,491
<TOTAL-REVENUES> 632,874
<CGS> 0
<TOTAL-COSTS> 502,013
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 130,861
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
