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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 March 31, 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 Three Months Ended March 31, 1997
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>
March 31, December 31,
1997 1996
--------- --------
<S> <C> <C>
ASSETS
Cash $64,457 $374,088
Note receivable from
affiliate 2,358,6012,478,601
Loan costs 13,43917,919
Total Assets $2,436,497 $2,870,608
========== ==========
LIABILITIES AND PARTNERS' EQUITY
Accounts Payable $ 5,450-
Partners' Equity:
Limited Partners (4,200 units
outstanding) 2,431,0472,870,608
General Partner - -
Total Liabilities &
Partners' Deficit $2,436,497$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 and
Year to Date Ending
MARCH 31,
____________________
1997 1996
____ ____
<S> <C> <C>
REVENUE:
None
EXPENSES:
Legal & Accounting Fees 8,200 $8,576
General & Admin. Expenses 889 313
Mortgage Servicing Fee 1,750 1,750
Amortization 4,4804,480
Total Expenses $15,319 $15,119
NET LOSS $(15,319) $(15,119)
<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
MARCH 31,
1997 1996
<S> <C> <C>
Cash Flows from Operating Activities:
Net Loss $(15,319) $ (15,119)
Adjustments to reconcile Net
Income to Net Cash used in
Operating Activities:
Amortization 4,480 4,480
Increase in Accounts Payable 5,450 -
Total Adjustments 9,930 4,480
Net Cash used in
Operating Activities (5,389) (10,639)
Cash Flows from Financing Activities:
Principal payments received 120,000 120,000
Cash Distributions (424,242)(212,121)
Net Cash used in
Financing Activities: (304,242) (92,121)
Net Decrease in
Cash and Cash Equivalents(309,631) (102,760)
CASH AT JANUARY 1, 374,088 150,582
CASH AT MARCH 31, $ 64,457 $47,822
========= ========
<FN>
See notes to financial statements.
/TABLE
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HICKORY LENDERS, LTD.
(A Limited Partnership)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the Three Months Ended March 31, 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 three
month period ended March 31, 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 three months were as
follows:
<TABLE>
<CAPTION>
1997 1996
________ ________
<S> <C> <C>
Management Fees $ 1,750 $ 1,750
</TABLE>
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Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS FOR THE QUARTER ENDED MARCH 31, 1997.
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 quarter of 1997, the Borrower sold 6 lots at the
Hendersonville Property for $23,500 per lot and one lakefront lot
for $60,000. From these proceeds, $120,000 in interest was paid to
the Lender. The remaining proceeds were retained to cover
operating expenses.
FINANCIAL CONDITION
LIQUIDITY
At April 30, 1997, the Registrant had approximately $52,989 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 for the First Quarter of 1997
(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: May 15, 1997 By:/s/ Steven D. Ezell
President
Date: May 15, 1997 By:/s/Michael A. Hartley
Secretary/Treasurer
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<CASH> 64457
<SECURITIES> 0
<RECEIVABLES> 2358601
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2436497
<CURRENT-LIABILITIES> 5450
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2431047
<TOTAL-LIABILITY-AND-EQUITY> 2436497
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 15319
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (15319)
<INCOME-TAX> 0
<INCOME-CONTINUING> (15319)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (15319)
<EPS-PRIMARY> (3.65)
<EPS-DILUTED> (3.65)
</TABLE>
