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FORM 10-Q--QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the period ended September 30, 1996
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from __________ to _______________
Commission File Number: 33-18089-A
HICKORY LENDERS, LTD.
(Exact name of Registrant as specified in its charter)
Tennessee 62-1336905
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification)
4400 Harding Road, Suite 500, Nashville, Tennessee 37205
(Address of principal executive office) (Zip Code)
(615) 292-1040
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1)
hasfiled all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the
preceding 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 at least the past 90
days.
YES X NO ___
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PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
HICKORY LENDERS, LTD.
(A Tennessee Limited Partnership)
FINANCIAL STATEMENTS
For The Nine Months Ended September 30, 1996
INDEX
Financial Statements:
Balance Sheets 3
Statements of Operations 4
Statements of Cash Flows 5
Notes to Financial Statements 6
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<TABLE>
HICKORY LENDERS, LTD.
(A Limited Partnership)
BALANCE SHEETS
(Unaudited)
<CAPTION>
September 30, December 31,
1996 1995
------------- -------------
<S> <C> <C>
ASSETS
CASH $ 24,467 $ 150,582
NOTE RECEIVABLE FROM AFFILIATE 2,828,601 3,228,601
LOAN COSTS 22,399 35,839
Total Assets $ 2,875,466 $ 3,415,022
========== ==========
LIABILITIES AND PARTNERS' EQUITY
PARTNERS' EQUITY 2,875,466 3,415,022
Total Liabilities &
Partners' Deficit $ 2,875,466 $ 3,415,022
========== ==========
</TABLE>
[FN]
See notes to financial statements.
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<TABLE>
HICKORY LENDERS, LTD.
(A Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Quarter Ending Year to Date Ending
SEPTEMBER 30,
_________________
1996 1995 1996 1995
____ ____ ____ ____
<S> <C> <C> <C> <C>
REVENUE:
Interest - - 2,578 1,748
EXPENSES:
State Income Tax - - 1,121 -
Legal &
Accounting Fees 300 823 12,567 11,492
General &
Admin. Expenses 352 1,134 664 1,433
Mortgage
Servicing Fee 1,750 1,750 5,250 5,250
Amortization 4,480 4,480 13,440 13,440
Total Expenses 6,882 8,187 33,042 31,615
NET LOSS $(6,882) (8,187) (30,464) (29,867)
<FN>
See notes to financial statements
</TABLE>
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<TABLE>
HICKORY LENDERS, LTD.
(A Limited Partnership)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Year-to-date
SEPTEMBER 30,
__________________________
1996 1995
____ ____
<S> <C> <C>
Cash Flows from Operating Activities:
Net Loss $(30,464) $ (29,867)
Adjustments to reconcile Net
Income to Net Cash used in
Operating Activities:
Amortization 13,440 13,440
Increase in Accounts Payable - 300
Payments received on Interest
Receivable from Affiliate - 84,301
Total Adjustments 13,440 98,041
Net Cash used in
Operating Activities (17,024) 68,174
Cash Flows from Financing Activities:
Payment received on
Note Receivable 400,000 125,699
Distribution to Partners (509,091) -
Net Cash (used in)/provided
by Financing Activities (109,091) 125,699
Net Increase/(Decrease) in Cash
and Cash Equivalents (126,115) 193,873
CASH AT JANUARY 1, 150,582 68,851
CASH AT SEPTEMBER 30, 24,467 $ 262,724
========= ========
<FN>
See notes to financial statements.
</TABLE>
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HICKORY LENDERS, LTD.
(A Limited Partnership)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the Nine Months Ended September 30, 1996
(Unaudited)
A.ACCOUNTING POLICIES
The unaudited financial statements presented herein have been
prepared in accordance with the instructions to Form 10-Q and
do not include all of the information and note disclosures
required by generally accepted accounting principles. These
statements should be read in conjunction with the financial
statements and notes thereto included in the Partnership's Form
10-K for the year ended December 31, 1995. In the opinion of
management, such financial statements include all adjustments,
consisting only of normal recurring adjustments, necessary to
summarize fairly the Partnership's financial position and
results of operations. The results of operations for the nine
month period ended September 30, 1996 may not be indicative of
the results that may be expected for the year ending December
31, 1996.
B.RELATED PARTY TRANSACTIONS
The General Partner and its affiliates have been actively
involved in managing the Partnership's operations. Compensation
earned for these services in the first nine months were as
follows:
<TABLE>
<CAPTION>
1996 1995
________ ________
<S> <C> <C>
Management Fees $ 5,250 5,250
Accounting Fees 1,600 1,500
</TABLE>
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Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
The Partnership's primary business is to lend monies to
Hickory Hills, Ltd. Due to the nature of the Registrant, all
activity is a result of transactions in Hickory Hills, Ltd., the
loan holder.
The Registrant continues its policy begun in 1991 of not
recognizing interest income for financial reporting purposes on
the Lender Financing. This policy was accepted upon the
recommendation of the Registrant's principal accountants because
there had not been any payments made on the Lender Financing
since inception and there has been no independent verification
of the value of the land held as collateral. Interest income
will be recognized for tax and loan payment purposes.
Operating expenses of the Registrant are comparable to the prior
year's quarter and are not expected to fluctuate in the future.
During the third quarter of 1996, the Owner sold 13 lots of the
Hendersonville Property. Three of these lots sold were lake
front lots and sold for $60,000 per lot. The remaining lots
sold at $23,500 per lot. The Owner has 33 lots remaining in the
Hendersonville Property. From these sale proceeds, payments
of $280,000 were made to the Registrant and the remaining
proceeds were retained for operating and development. The Owner
made payments on the Lender financing totalling $400,000 for the
nine month period ending September 30, 1996.
FINANCIAL CONDITION
DEVELOPMENT
During the third quarter of 1996, the Owner completed a
significant portion of Phase V of the Hendersonville Property.
This development opened up 45 lots of which 13 were sold this
quarter. Phase IV and V infrastructure is expected to be
complete by the end of 1996.
LIQUIDITY
At October 31, 1996 the Registrant had approximately $22,717 in
cash reserves. Due to the minimal expenses of the Registrant,
these funds are expected to be sufficient through 1996.
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PART II. OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule
(b) No 8-K's have been filed during this quarter.
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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, thereunto duly authorized.
HICKORY LENDERS, LTD.
By: 222 HICKORY, LTD.
General Partner
By: 222 PARTNERS, INC.
General Partner
Date: November 14, 1996 By:/s/ Steven D. Ezell
President
Date: November 14, 1996 By:/s/ Michael A. Hartley
Secretary/Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1996
<CASH> 24,467
<SECURITIES> 0
<RECEIVABLES> 2,828,601
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,875,466
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,875,466
<TOTAL-LIABILITY-AND-EQUITY> 2,875,466
<SALES> 0
<TOTAL-REVENUES> 2,578
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 33,042
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (30,464)
<INCOME-TAX> 0
<INCOME-CONTINUING> (30,464)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (30,464)
<EPS-PRIMARY> (7.25)
<EPS-DILUTED> 0
</TABLE>