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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 June 30, 1997
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)
One Belle Meade Place, 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) has
filed 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 Six Months Ended June 30, 1997
INDEX
Financial Statements:
Consolidated Balance Sheets 3
Consolidated Statements of Operations 4
Consolidated 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>
June 30, 1997 December 31, 1996
------------- -------------
<S> <C> <C>
ASSETS
CASH $ 27,040 $ 374,088
NOTE RECEIVABLE FROM AFFILIATE 2,133,601 2,478,601
LOAN COSTS 8,959 17,919
Total Assets $ 2,169,600 $ 2,870,608
========== ==========
LIABILITIES AND PARTNERS' EQUITY
PARTNERS' EQUITY:
Limited partners (4,200
units outstanding) 2,169,600 2,870,608
General partner - -
Total partners' equity 2,169,600 2,870,608
========== ==========
<FN>
See notes to financial statements.
/TABLE
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<TABLE>
HICKORY LENDERS, LTD.
(A Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Quarter to Date Year to Date
Ending JUNE 30,
----------------------------------
1997 1996 1997 1996
<S> <C> <C> <C> <C>
REVENUE:
Interest $5,269 $ 2,578 $ 5,269 $ 2,578
EXPENSES:
State Income Tax 2,968 1,121 2,968 1,121
Legal & Accounting Fees 2,972 3,691 11,172 12,267
General & Admin. Expenses - - 888 312
Mortgage Servicing Fee 1,750 1,750 3,500 3,500
Amortization 4,480 4,480 8,960 8,960
Total Expenses 12,170 11,042 27,488 26,160
NET LOSS (6,901) (8,464) $(22,219) $(23,582)
<FN>
See notes to financial statements
</TABLE>
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<TABLE>
HICKORY LENDERS, LTD.
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Year-to-date
JUNE 30,
--------------------------
1997 1996
<S> <C> <C>
Cash Flows from Operating Activities:
Net Loss $ (22,219) $(23,583)
Adjustments to reconcile Net
Income to Net Cash used in
Operating Activities:
Amortization 8,960 8,960
Total Adjustments 8,960 8,960
Net Cash used in
Operating Activities (13,259) (14,623)
Cash Flows from Financing Activities:
Distribution to Partners (678,788) (212,121)
Principal payments received 345,000 120,000
Net Cash used in Financing Activities: (333,788) (92,121)
Net Increase/(Decrease) in
Cash and Cash Equivalents (347,047) (106,744)
CASH AT JANUARY 1, 374,088 150,582
CASH AT JUNE 30, 27,040 $ 43,838
========= ========
<FN>
See notes to financial statements.
</TABLE>
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HICKORY LENDERS, LTD.
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
For the Six Months Ended June 30, 1997
(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, 1996. 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 six month period ended June 30, 1997 may not be
indicative of the results that may be expected for the
year ending December 31, 1997.
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 six
months were as follows:
<TABLE>
<CAPTION>
1997 1996
-------- -------
<S> <C> <C>
Management Fees $3,500 $ 3,500
</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.
The Note receivable to Affiliate comes due on December 31, 1997.
The General Partner plans to negotiate an extension of the loan
term. The General Partner does not expect the Borrower to have the
liquidity to retire the debt in full on December 31, 1997. Because
the Borrower and the Registrant share the same general partner, it
may be necessary to appoint an independent party to represent the
general partner for the Registrant, the Borrower or both during the
loan negotiations. However, if the loan term is not extended, the
lack of payment would constitute a default on the loan agreement.
In such an event the Registrant is required to foreclose the loan.
Currently, the Partnership has not foreclosed or accelerated the
amounts due under the loan agreement.
Overall operations of the Registrant have not fluctuated
significantly from previous quarters.
During the first six months of 1997, the Borrower sold 16 lots at
the Hendersonville Property for $23,500 per lot and one lakefront
lot for $60,000. From these proceeds, $345,000 in interest was paid
to the Lender. The remaining proceeds were retained to cover
operating expenses.
FINANCIAL CONDITION
LIQUIDITY
At July 31, 1997, the Registrant had approximately $25,290 in cash
reserves. These funds are expected to be sufficient through 1997.
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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
222 PARTNERS, INC.
General Partner
Date: August 14, 1997 By:/s/ Steven D. Ezell
President
Date: August 14, 1997 By:/s/ Michael A. Hartley
Secretary/Treasurer
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1997
<CASH> 27040
<SECURITIES> 0
<RECEIVABLES> 2133601
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2169600
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2169600
<TOTAL-LIABILITY-AND-EQUITY> 2169600
<SALES> 0
<TOTAL-REVENUES> 5269
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 27488
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (22219)
<INCOME-TAX> 0
<INCOME-CONTINUING> (22219)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (22219)
<EPS-PRIMARY> (5.29)
<EPS-DILUTED> (5.29)
</TABLE>
