<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2000
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 0-18528
INCOME GROWTH PARTNERS, LTD. X
(Exact name of registrant as specified in its charter)
CALIFORNIA 33-0294177
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
11300 Sorrento Valley Road, Suite 108, San Diego, California 92121
(Address of principal executive offices) (Zip Code)
(619) 457-2750
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registration (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
filing requirements for the past 90 days. Yes [X] No [ ]
The number of the registrant's Original Limited Partnership Units outstanding as
of May 14, 1999 was 18,826.5. The number of the registrant's Class A Units
outstanding as of May 14, 1999 was 8,100.
<PAGE> 2
INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
(A California Limited Partnership)
CONSOLIDATED BALANCE SHEETS
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
September 30 December 31,
2000 1999
unaudited
------------ ------------
<S> <C> <C>
ASSETS
Rental properties
Land $ 7,078,365 $ 7,078,365
Buildings and improvements 21,992,876 21,907,461
------------ ------------
29,071,241 28,985,826
Less accumulated depreciation (10,969,288) (10,316,949)
------------ ------------
18,101,953 18,668,877
Cash and cash equivalents 485,064 434,712
Deferred loan fees, net of accumulated amortization
of $227,013 and $188,166, respectively 550,170 589,017
Prepaids and other assets 492,832 125,864
------------ ------------
$ 19,630,019 $ 19,818,470
============ ============
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Mortgage loans payable $ 19,263,990 $ 19,382,900
Other liabilities
Loan payable to affiliates 18,703 48,540
Accounts payable and accrued liabilities 288,792 172,559
Accrued interest payable 125,699 120,684
Security deposits 231,933 217,757
------------ ------------
19,929,117 19,942,440
Commitments and contingencies
Partners' capital (deficit) (283,498) (113,970)
Note receivable from general partner (15,600) (10,000)
------------ ------------
$ 19,630,019 $ 19,818,470
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE> 3
INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
(A California Limited Partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS - - UNAUDITED
<TABLE>
<CAPTION>
FOR THE THREE MONTHS FOR THE NINE MONTHS
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
------------------------ ------------------------
2000 1999 2000 1999
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUES
Rents $1,166,752 $1,081,445 $3,438,360 $3,182,432
Other 134,987 52,651 237,330 152,997
---------- ---------- ---------- ----------
Total revenues 1,301,739 1,134,096 3,675,690 3,335,429
---------- ---------- ---------- ----------
EXPENSES
Operating expenses 620,542 476,270 1,554,131 1,486,322
Depreciation and amortization 230,254 234,551 691,187 699,668
Interest 373,507 377,478 1,119,385 1,126,649
---------- ---------- ---------- ----------
Total expenses 1,224,303 1,088,299 3,280,628 3,312,639
---------- ---------- ---------- ----------
Net income (loss) $ 77,436 $ 45,797 $ 310,987 $ 22,790
========== ========== ========== ==========
BASIC AND DILUTED PER LIMITED PARTNERSHIP UNIT DATA
Net income (loss) per limited partnership unit $ 2.88 $ 1.70 $ 11.55 $ .85
========== ========== ========== ==========
Weighted average limited partnership units 26,926 26,926 26,926 26,926
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE> 4
INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
(A California Limited Partnership)
CONSOLIDATED STATEMENTS OF CASH FLOWS -- UNAUDITED
<TABLE>
<CAPTION>
FOR THE NINE MONTHS
ENDED SEPTEMBER 30,
-----------------------
2000 1999
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 310,987 $ 22,790
Adjustments to reconcile net loss to net cash provided by
operating activities
Depreciation and amortization 691,187 699,668
(Increase) in
Prepaid expenses and other assets (366,968) 15,989
Increase in
Accounts payable, accrued liabilities and accrued
interest payable 121,248 (39,803)
Security deposits 13,675 17,946
--------- ---------
Net cash provided by operating activities 770,129 716,590
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (85,415) (103,531)
--------- ---------
Net cash used in investing activities (85,415) (103,531)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments under mortgage debt (118,910) (109,627)
Principal payments to affiliate (29,837) (11,900)
Distributions to Investors (485,615) (351,100)
--------- ---------
Net cash used by financing activities (634,362) (472,627)
--------- ---------
Net increase (decrease) in cash and cash equivalents 50,352 140,432
--------- ---------
Cash and cash equivalents at beginning of period 434,712 441,909
--------- ---------
Cash and cash equivalents at end of period $ 485,064 $ 582,341
========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements
4
<PAGE> 5
INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
A CALIFORNIA LIMITED PARTNERSHIP
1. BASIS OF FINANCIAL STATEMENT PRESENTATION:
The accompanying unaudited consolidated financial statements of Income
Growth Partners, Ltd. X, a California limited partnership, and subsidiary
(the "Partnership") have been prepared pursuant to the rules and
regulations of the Securities and Exchange Commission. Certain information
and note disclosures normally included in annual financial statements
prepared in accordance with generally accepted accounting principles have
been condensed or omitted pursuant to those rules and regulations, although
the Partnership believes that the disclosures made are adequate to make the
information presented not misleading. These consolidated financial
statements should be read in conjunction with the financial statements and
the notes thereto included in the Partnership's latest audited financial
statements for the year ended December 31, 1999 filed on Form 10K.
The accompanying consolidated financial statements have not been audited by
independent public accountants, but include all adjustments (consisting of
normal recurring adjustments) which are, in the opinion of the general
partners, necessary for a fair presentation of the financial condition,
results of operations and cash flows for the periods presented. However,
these results are not necessarily indicative of results for a full year.
Certain prior period amounts have been reclassified to conform with the
current period presentation.
5
<PAGE> 6
INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
(A CALIFORNIA LIMITED PARTNERSHIP)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The following Management's Discussion and Analysis of Financial Condition
and Results of Operations should be read in conjunction with the financial
statements and notes thereto filed herewith.
a. Liquidity and Capital Resources:
Since inception, the Partnership's operating and debt service
obligations have been financed through the sale of Partnership
Units, cash provided by operating activities, and 1995 debt
restructuring activities. During the nine months ended September
30, 2000, all of the Partnership's operating and debt service
cash requirements have been met through cash generated from
operations.
The Mission Park mortgage was refinanced in December 1995 at a
fixed interest rate of 7.76%. The Shadowridge Meadows mortgage
was refinanced in October 1997 at a fixed interest rate of 7.49%.
In the event that one or more of the properties is unable to
support its debt service and the Partnership is unable to cover
operational shortfalls from cash reserves, the Partnership may
have to take one or more alternative courses of action. The
general partners would then determine, based on their analysis of
relevant economic conditions and the status of the properties, a
course of action intended to be consistent with the best
interests of the Partnership. Possible courses of action might
include the sacrifice, sale or refinancing of one or more of the
properties, the entry into one or more joint venture partnerships
with other entities, or the filing of another bankruptcy
petition.
Net cash provided by operating activities for the nine months
ended September 30, 2000 was approximately $770,000 compared to
approximately $717,000 for the same period in 1999. The principal
reason for this increase can be attributed to an increase in net
income for the period.
Net cash used in investing activities for the nine months ended
September 30, 2000 was approximately $85,000 compared to
approximately $104,000 for the same period in 1999. The principal
reason for this decrease was a decrease in capital expenditures.
Net cash used in financing activities for the nine months ended
September 30, 2000 was approximately $634,000 compared to
approximately $473,000 for the same period in 1999. The principal
reason for this increase was an increase in distributions to
investors.
6
<PAGE> 7
INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
(A California Limited Partnership)
b. Results of Operations:
COMPARISON OF THREE MONTHS ENDED SEPTEMBER 30, 2000 TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1999.
Rental revenue for the three months ended September 30, 2000 was
approximately $1,167,000, an increase of 7.96% over rents of
approximately $1,081,000 for the comparable period in 1999. The
increase is primarily attributable to an increase in monthly tenant
rental rates and steady average occupancy rates.
Operating expenses for the three months ended September 30, 2000 were
approximately $621,000, an increase of 30.46% over operating expenses
of approximately $476,000 for the comparable period in 1999. The
increase is primarily attributable to an increase in property
maintenance costs and in partnership expenses.
COMPARISON OF NINE MONTHS ENDED SEPTEMBER 30, 2000 TO THE NINE MONTHS
ENDED SEPTEMBER 30, 1999.
Rental revenue for the nine months ended September 30, 2000 was
approximately $3,438,000, an increase of 8.05% over rents of
approximately $3,182,000 for the comparable period in 1999. The
increase is primarily attributable to an increase in monthly tenant
rental rates and steady average occupancy rates.
Operating expenses for the nine months ended September 30, 2000 were
approximately $1,554,000, an increase of 4.58% over operating expenses
of approximately $1,486,000 for the comparable period in 1999. The
increase is primarily attributable to an increase in property
maintenance and partnership expenses.
7
<PAGE> 8
INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
A CALIFORNIA LIMITED PARTNERSHIP
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS:
There are no pending legal proceedings, which may have a material
adverse effect on the Partnership. However, the Partnership is
involved in small claims court proceedings against certain present or
former tenants of its apartment complexes with regard to
landlord-tenant matters, all of which are considered to be in the
ordinary course of its business.
ITEM 2. CHANGES IN SECURITIES:
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES:
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS:
None
ITEM 5. OTHER INFORMATION:
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K:
27.1 Financial Data Schedule
8
<PAGE> 9
INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
A CALIFORNIA LIMITED PARTNERSHIP
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.
Date: November 14, 2000
INCOME GROWTH PARTNERS, LTD. X,
a California Limited Partnership
By: Income Growth Management, Inc.
General Partner
By: /s/ Timothy C. Maurer
------------------------------------
Timothy C. Maurer
Principal Financial Officer AND
Duly Authorized Officer of the Registrant
9
