<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 March 31, 2000
[ ] TRANSITION REPORT UNDER SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
---------------- ------------------
Commission File Number 0-17602
- ------------------------------------------------------------------------------
ChrisKen Partners Cash Income Fund L.P.
- ------------------------------------------------------------------------------
(Exact name of small business issuer as Specified in its
certificate of Limited partnership)
DELAWARE 36-3521124
- ------------------------------- ----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
345 North Canal Street, Chicago, Illinois 60606
- ------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(312) 454-1626
- ------------------------------------------------------------------------------
(Issuer's telephone number)
- ------------------------------------------------------------------------------
(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
------- -------
<PAGE>
CHRISKEN PARTNERS CASH INCOME FUND L.P.
INDEX
<TABLE>
<CAPTION>
PAGE
<S> <C>
PART I FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements (UNAUDITED)
Condensed Consolidated Balance Sheet at
March 31, 2000 2
Condensed Consolidated Statements of Income
for the Three Months Ended
March 31, 2000 and 1999 3
Condensed Consolidated Statement of Partners'
Capital for the Three Months Ended
March 31, 2000 4
Condensed Consolidated Statements of Cash Flows for
the Three Months Ended March 31, 2000
and 1999 5
Notes to Condensed Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis or
Plan of Operation 8
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 11
Item 2. Changes in Securities and Use of Proceeds 11
Item 3. Defaults Upon Senior Securities 11
Item 4. Submissions of Matters to a Vote of
Security Holders 11
Item 5. Other Information 11
Item 6. Exhibits and Reports on Form 8-K 11
SIGNATURE 12
</TABLE>
<PAGE>
Chrisken Partners Cash Income Fund L.P.
(A DELAWARE LIMITED PARTNERSHIP)
Condensed Consolidated Balance Sheet
March 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Cash and cash equivalents $ 330,358
Restricted cash 377,320
Accounts receivable 52,690
Prepaid expenses 19,469
-------------------
779,837
Investment in real estate, at cost:
Land 2,253,734
Buildings and improvements 10,890,200
Personal property 373,268
-------------------
13,517,202
Accumulated depreciation (2,709,068)
-------------------
10,808,134
-------------------
Total assets $11,587,971
-------------------
-------------------
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 51,212
Tenants' security deposits 89,245
Deferred income and prepaid rent 99,223
Accrued real estate taxes 194,453
-------------------
Total liabilities 434,133
Partners' capital, 35,977 limited partnership units issued and outstanding
11,153,838
-------------------
Total liabilities and partners' capital $11,587,971
-------------------
-------------------
</TABLE>
SEE ACCOMPANYING NOTES.
2
<PAGE>
Chrisken Partners Cash Income Fund L.P.
(A DELAWARE LIMITED PARTNERSHIP)
Condensed Consolidated Statements of Income
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31
2000 1999
--------------------------------
<S> <C> <C>
REVENUE
Rental $ 702,851 $ 677,754
Interest 11,817 11,942
Other 35,870 33,926
--------------------------------
Total revenue 750,538 723,622
EXPENSES
Property operations 128,563 137,615
Depreciation 132,443 132,443
General and administrative 211,892 203,349
Management fees - Affiliate 40,620 38,140
--------------------------------
Total expenses 513,518 511,547
--------------------------------
Net income $ 237,020 $ 212,075
--------------------------------
--------------------------------
Net income allocated to general partners $ 23,702 $ 21,208
--------------------------------
--------------------------------
Net income allocated to limited partners $ 213,318 $ 190,867
--------------------------------
--------------------------------
Net income allocated to limited partners per limited partnership unit
outstanding $ 5.93 $ 5.15
--------------------------------
--------------------------------
Limited partnership units outstanding 35,977 36,948
--------------------------------
--------------------------------
</TABLE>
3
SEE ACCOMPANYING NOTES.
<PAGE>
Chrisken Partners Cash Income Fund L.P.
(A DELAWARE LIMITED PARTNERSHIP)
Condensed Consolidated Statement of Partners' Capital
Three months ended March 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PARTNERS' CAPITAL ACCOUNTS
------------------------------------------------------
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
------------------------------------------------------
<S> <C> <C> <C>
Balance at January 1, 2000 $523,989 $10,961,939 $11,485,928
Distributions (A) (139,865) (429,245) (569,110)
Net income 23,702 213,318 237,020
------------------------------------------------------
Balance at March 31, 2000 $407,826 $10,746,012 $11,153,838
------------------------------------------------------
------------------------------------------------------
</TABLE>
(A) Summary of 2000 quarterly cash distributions paid per limited partnership
unit:
First quarter $11.93
SEE ACCOMPANYING NOTES.
4
<PAGE>
Chrisken Partners Cash Income Fund L.P.
(A DELAWARE LIMITED PARTNERSHIP)
Condensed Consolidated Statements of Cash Flows
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31
2000 1999
-------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $237,020 $212,075
Adjustments to reconcile net income to net cash flows provided by
operating activities:
Depreciation 132,443 132,443
Net changes in operating assets and liabilities:
(Increase) decrease in accounts receivable (8,801) 10,639
Decrease (increase) in other assets 469 (823)
Decrease in accounts payable and accrued expenses (102,352) (169,014)
(Decrease) increase in deferred income and prepaid rent (22,156) (7,839)
(Decrease) increase in tenants' security deposits (3,966) 1,669
-------------------------------
Net cash flows provided by operating activities 232,657 179,150
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to investment in real estate (41,805) (15,211)
-------------------------------
Cash flows used in investing activities (41,805) (15,211)
CASH FLOWS FROM FINANCING ACTIVITIES
Distributions to partners (569,110) (279,533)
-------------------------------
Cash flows used in financing activities (569,110) (279,533)
-------------------------------
Net decrease in cash and cash equivalents (378,258) (115,594)
Cash and cash equivalents, beginning of period 708,616 792,816
-------------------------------
Cash and cash equivalents, end of period $330,358 $677,222
-------------------------------
-------------------------------
</TABLE>
SEE ACCOMPANYING NOTES.
5
<PAGE>
Chrisken Partners Cash Income Fund L.P.
(A DELAWARE LIMITED PARTNERSHIP)
Notes to Condensed Consolidated Financial Statements
(UNAUDITED)
1. INTERIM ACCOUNTING POLICIES
The accompanying unaudited condensed 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 Chrisken Partners Cash Income Fund L.P.'s (the "Partnership")
Annual Report on Form 10-KSB for the year ended December 31, 1999.
2. SEGMENT INFORMATION
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31, 2000 MARCH 31, 1999
--------------------------------------------------------------
RESIDENTIAL SELF RESIDENTIAL SELF
APARTMENT STORAGE APARTMENT STORAGE
COMPLEX FACILITY COMPLEX FACILITY
--------------------------------------------------------------
<S> <C> <C> <C> <C>
Property operating revenues $ 421,389 $320,188 $422,668 $ 294,393
Operating income 160,041 113,656 154,744 77,242
Total assets 6,401,928 4,694,136 6,529,537 4,848,632
</TABLE>
6
<PAGE>
Chrisken Partners Cash Income Fund L.P.
(A DELAWARE LIMITED PARTNERSHIP)
Notes to Condensed Consolidated Financial Statements
(UNAUDITED)
2. SEGMENT INFORMATION (CONTINUED)
A reconciliation of combined operating income for the residential apartment
complex segment and the self storage facility segment to net income is as
follows:
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31
2000 1999
----------------------------
<S> <C> <C>
Total operating income for reportable segments $273,697 $231,986
General and administrative expense (45,638) (26,472)
Interest income 8,961 6,561
----------------------------
Net income $237,020 $212,075
----------------------------
----------------------------
</TABLE>
3. DISTRIBUTIONS
During fiscal 1999 the Limited Partners received their noncumulative,
noncompounded annual preferred return in excess of 7% per annum. In the three
months ended March 31, 2000 the General Partners received the excess cash
distribution as defined in the Partnership Agreement.
7
<PAGE>
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 99.9% 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 $330,358 and
$708,616 as of March 31, 2000, and December 31, 1999, respectively. The
reduction in cash and cash equivalents is primarily due to additions to
investment in real estate, reductions in accrued real estate taxes and
accrued liabilities, and distributions in excess of net cash provided by
operating activities, partially offset by an increase in accounts payable.
Restricted cash represents operating and contingency reserves (the "Reserve")
equal to approximately 2% of the gross proceeds of the Offering ($377,320 at
March 31, 2000, and December 31, 1999) 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. The Partnership
holds the Specified Properties described above on an unencumbered or all cash
basis.
On March 31, 2000, a number of affiliates of MacKenzie Patterson,
Inc., which are not affiliated with the Partnership or its General Partners,
submitted an unsolicited tender offer to the Partnership's Limited Partners
to purchase up to 5,542, or approximately 15%, of the outstanding Limited
Partnership Units of the Partnership at $285 per Unit. The Partnership's
records indicate that as of May 5, 2000, no Units were sold by Limited
Partners to the MacKenzie Patterson, Inc. affiliates. The MacKenzie
Patterson, Inc. offer, which was to expire on May 5, 2000, was extended to
May 15,2000, and the offer price was increased to $301. On April 11, 2000,
the General Partners filed a neutral position response to the MacKenzie
Patterson, Inc. offer.
On April 4, 2000, Bond Purchase, L.L.C., 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 1,000, or
approximately 2.8%, of the outstanding Limited Partnership Units of the
Partnership at $301 per Unit. The Partnership's records indicate that as of
May 5, 2000, 151.5 Units were sold by Limited Partners to the Bond Purchase,
L.L.C. The Bond Purchase, L.L.C. offer expires on May 15, 2000.
Management believes that the Unit sales to Bond Purchase, L.L.C., or
the MacKenzie Patterson, Inc. affiliates, if any, will not adversely affect
the management or the liquidity of the Partnership.
For Springdale Apartments, management has budgeted the following
major repairs or improvements to the property to be completed during 2000:
new playground equipment ($7,000), landscaping enhancements ($15,000), new
sidewalks, stoops and curbs for one building ($15,000), resurfacing one of
four parking lots ($45,000), apartment entry door replacement ($36,900),
replacing parking lot lighting ($10,000) and continued carpet ($67,500) and
appliance replacement ($29,600) as needed due to obsolescence. For Gold Coast
Storage, management has budgeted the following major repairs or improvements
to the property to be completed during 2000: new fencing around the entire
perimeter of the property ($65,500), landscaping enhancements ($30,000), and
a roof top door replacement ($8,500).
8
<PAGE>
RESULTS OF OPERATIONS
Occupancy at the Springdale Apartments was 91.5% at March 31, 2000, 97%
at December 31, 1999, and 98% at March 31, 1999. Rental revenue increased
slightly during the three months ended March 31, 2000, as compared to the same
period one year earlier, due to a 3.2% increase in rental rates offset by
increased vacancy loss. The General Partners believe that occupancy at
Springdale Apartments will remain between 92 - 96% for the remainder of 2000.
Occupancy at Gold Coast Storage was 85% at March 31, 2000, 87% at
December 31, 1999, and 88% at March 31, 1999. Rental revenue increased during
the three months ended March 31, 2000, as compared to the same period one year
earlier, primarily due to a 8.6% net effective increase in rental rates. The
General Partners believe that occupancy at Gold Coast will remain between 83 -
88% for the remainder of 2000.
Management continues to aggressively market both apartment units at
Springdale Apartments and space at Gold Coast Storage in order to increase
occupancy percentages, and rental rates.
Rental and other revenue of $421,389 for Springdale Apartments for the
three months ended March 31, 2000, decreased slightly from rental revenue of
$422,668 for the three months ended March 31, 1999. The decrease in rental
revenue primarily resulted from a 3.2% increase in rental rates offset by a
significant increase in vacancy loss in 2000. Rental and other revenue at Gold
Coast Storage increased by approximately 8.8% from $294,393 for the three months
ended March 31, 1999, to $320,188 for the three months ended March 31, 2000, due
to a 8.6% net effective increase in rental rates and a 11.6% increase in 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, 2000, of $741,577 increased by 3.4%
from the three months ended March 31, 1999, of $717,061, due to the factors
detailed above affecting the Specified Properties.
Expenses for the three months ended March 31, 2000, attributable to
Springdale Apartments of $261,348 were approximately 2.5% lower than expenses
for the three months ended March 31, 1999, of $267,924, due to lower property
operating and maintenance, and general and administrative expenses. Property
operating expenses decreased due to lower electricity, gas and fuel, grounds
maintenance and supplies, structural repairs, and heating ventilation and air
conditioning repairs and supplies, partially offset by increased water and
sewer, and painting and decorating expenses. General and administrative expenses
are lower due to decreased telephone and answering service, real estate tax and
insurance expense, partially offset increased advertising, legal and eviction
fees and bad debt expense. Administrative salaries are slightly higher due to
increased salary levels. Management fee expense in 2000 is comparable to 1999
expense.
Overall expenses attributable to Gold Coast Storage for the three
months ended March 31, 2000, of $206,532 decreased 4.9% compared to overall
expenses for the three months ended March 31, 1999, of $217,151. Property
operating and maintenance expenses are lower in 2000, as compared to the first
quarter of 1999, due to lower electricity, gas and fuel, water and sewer, and
elevator maintenance, partially offset by increased janitorial, grounds
maintenance and supplies, and electrical repairs and supplies. Depreciation
expense in 2000 is comparable to 1999 expense. General and administrative
expenses during 2000 are lower than 1999, with decreases in training and
administrative expenses, administrative salaries, bad debt and property
insurance expense, offset by higher advertising and marketing expenses.
Administrative salaries are lower due to a temporary reduction in office staff
during the first quarter of 2000. Management fees are higher due to increased
revenue.
9
<PAGE>
Overall expenses incurred by the Specified Properties for the three
months ended March 31, 2000, of $467,880 decreased by approximately 3.5% from
the three months ended March 31, 1999, of $485,075, primarily as a result of
a combination of the foregoing factors affecting the Specified Properties.
Management anticipates that operational expenses in 2000 will be similar to
those experienced in 1999.
Net income for the three months ended March 31, 2000, of $160,041
from Springdale Apartments increased from the three months ended March 31,
1999, of $154,744, due to lower property operating, and maintenance, and
general, and administrative expenses, partially offset by slightly lower
rental revenue. Net income for the three months ended March 31, 2000, of
$113,656 from Gold Coast Storage increased 47%, as compared to net income for
the three months ended March 31, 1999, of $77,242, due to increased rental
revenue and lower property operating, and general and administrative expenses.
Interest income earned by the Partnership for the three months ended
March 31, 2000, of $8,961 is 36.6% higher than the $6,561 earned during the
three months ended one year earlier. Interest income earned on excess cash
held by Springdale Apartments was $2,856 in 2000, as compared to $5,381 in
1999. Administrative expenses incurred by the Partnership for the three
months ended March 31, 2000, of $45,638 increased by approximately 72.4% from
the three months ended one year earlier of $26,472, primarily due to
increased accounting and tax service fees.
Overall net income for the three months ended March 31, 2000, of
$237,020 increased from the three months ended March 31, 1999, of $212,075,
primarily due to increased rental revenue and decreased expenses at the
Specified Properties as discussed above.
Net cash flows provided by operations for the three months ended
March 31, 2000, was $232,657 compared to net cash flows provided by
operations of $179,150 for the three months ended March 31, 1999. The
increase was primarily the result of an increase in net income before
depreciation expense and a lower decrease in accounts payable and accrued
expenses offset by increased accounts receivable and reductions in deferred
income and prepaid rents, and tenants' security deposit liabilities.
Additions to investment in real estate at the Specified Properties increased
to $41,805 for the three months ended March, 31, 2000, compared to $15,211
for the same period one year ago. Additions to investment in real estate
during 2000 at Springdale Apartments during the first quarter of 2000
included continued carpet and appliance replacement, and grounds maintenance
equipment replacement. There were no significant additions to investment in
real estate at Gold Coast Storage during the first quarter of 2000.
Distributions to Limited Partners during the three months ended March 31,
2000, totaled $429,245 compared to distributions of $279,533 during the three
months ended March 31, 1999. Distributions to General Partners during the
three months ended March 31, 2000, totaled $139,865, as a result of 7%
noncumulative, noncompounded preferred return to the Limited Partners in
fiscal 1999. The General Partners anticipate that distributions to Limited
Partners will be an annualized basis 7% for 2000, with minor
quarter-to-quarter fluctuations depending on quarterly operating results.
Some statements in this Form 10-QSB 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.
10
<PAGE>
PART II
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) Exhibits.
Exhibit 27, Financial Data Schedule
(B) Reports on Form 8 - K.
No Reports on Form 8-K were filed during the quarter
ended March 31, 2000.
11
<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 thereto duly authorized.
CHRISKEN PARTNERS CASH INCOME FUND L.P.
(Registrant)
By: ChrisKen Income Properties
Inc., Managing General
Partner
Date: May 5, 2000 By: /s/ John F. Kennedy
-------------------------
John F. Kennedy
Director and President
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<CIK> 0000815278
<NAME> CHRISKEN PARTNERS CASH INCOME FUND L.P.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 707,678
<SECURITIES> 0
<RECEIVABLES> 52,690
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 779,837
<PP&E> 13,517,202
<DEPRECIATION> 2,709,068
<TOTAL-ASSETS> 11,587,971
<CURRENT-LIABILITIES> 434,133
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 11,153,838
<TOTAL-LIABILITY-AND-EQUITY> 11,587,971
<SALES> 702,851
<TOTAL-REVENUES> 750,538
<CGS> 0
<TOTAL-COSTS> 513,518
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 237,020
<INCOME-TAX> 0
<INCOME-CONTINUING> 237,020
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 237,020
<EPS-BASIC> 5.93
<EPS-DILUTED> 5.93
</TABLE>
