FORM 10-QSB.--QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Quarterly or Transitional Report
(As last amended by 34-32231, eff. 6/3/93.)
U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period.........to.........
Commission file number 33-20527
BRUNNER COMPANIES INCOME PROPERTIES L.P. I
(Exact name of small business issuer as specified in its charter)
Delaware 31-1234157
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
One Insignia Financial Plaza, P.O. Box 1089
Greenville, South Carolina 29602
(Address of principal executive offices) (Zip Code)
Issuer's telephone number (864) 239-1000
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the 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
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
a) BRUNNER COMPANIES INCOME PROPERTIES L.P. I
BALANCE SHEET
(Unaudited)
(in thousands, except unit data)
March 31, 1996
Assets
Cash:
Unrestricted $ 346
Restricted-tenant security deposits 8
Accounts receivable 105
Escrows for taxes 58
Other assets 127
Investment properties:
Land $ 4,123
Buildings and related personal property 20,915
25,038
Accumulated depreciation (5,194) 19,844
$20,488
Liabilities and Partners' Capital (Deficit)
Liabilities
Accounts payable $ 3
Tenant security deposits 8
Accrued taxes 52
Other liabilities 128
Mortgage notes payable 19,095
Partners' Capital (Deficit)
General partner $ (25)
Class A Limited Partners - (552,000
units) 935
Class B Limited Partners - (61,333
units) 292 1,202
$20,488
See Accompanying Notes to Financial Statements
b) BRUNNER COMPANIES INCOME PROPERTIES L.P. I
STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except unit data)
Three Months Ended
March 31,
1996 1995
Revenues:
Rental income $ 678 $ 721
Other income 7 6
Total revenues 685 727
Expenses:
Operating 64 67
General and administrative 29 26
Depreciation 167 166
Interest 435 453
Property taxes 53 52
Total expenses 748 764
Net loss $ (63) $ (37)
Net loss allocated to general
partner (1%) $ (1) $ --
Net loss allocated to Class A limited
partners (89.1%) (56) (33)
Net loss allocated to Class B limited
Partners (9.9%) (6) (4)
$ (63) $ (37)
Net loss per limited partnership unit $ (.10) $ (.06)
See Accompanying Notes to Financial Statements
c) BRUNNER COMPANIES INCOME PROPERTIES L.P. I
STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
(Unaudited)
(in thousands, except unit data)
<TABLE>
<CAPTION>
General Limited Partners
Partner Class A Class B Total
<S> <C> <C> <C> <C>
Original capital contributions $ 1 $ 5,520 $ 613 $ 6,134
Partners' capital (deficit) at
December 31, 1995 $ (24) $ 991 $ 298 $ 1,265
Net loss for the three months
ended March 31, 1996 (1) (56) (6) (63)
Partners' capital (deficit)
at March 31, 1996 $ (25) $ 935 $ 292 $ 1,202
<FN>
See Accompanying Notes to Financial Statements
</TABLE>
d) BRUNNER COMPANIES INCOME PROPERTIES L.P. I
STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1996 1995
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (63) $ (37)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation 167 166
Amortization of loan costs and leasing
commissions 10 13
Change in accounts:
Restricted cash -- (2)
Accounts receivable 21 15
Escrows for taxes 12 133
Other assets 4 (20)
Accounts payable (8) (6)
Tenant security deposits (2) 2
Accrued taxes (15) (109)
Other liabilities 24 16
Net cash provided by operating activities 150 171
Cash flows from investing activities:
Property improvements and replacements (10) --
Net cash used in investing activities (10) --
Cash flows from financing activities:
Payments on mortgage notes payable (110) (60)
Net cash used in financing activities (110) (60)
Net increase in cash 30 111
Cash at beginning of period 316 540
Cash at end of period $ 346 $ 651
Supplemental disclosure of cash flow information:
Cash paid for interest $ 431 $ 445
<FN>
See Accompanying Notes to Financial Statements
</TABLE>
e) BRUNNER COMPANIES INCOME PROPERTIES L.P. I
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note A - Basis of Presentation
The accompanying unaudited financial statements for Brunner Companies Income
Properties L.P. I ("the Partnership") have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-QSB and Item 310(b)of Regulation S-B.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of the Managing General Partner, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three month period ended March 31,
1996, are not necessarily indicative of the results that may be expected for the
fiscal year ending December 31, 1996. For further information, refer to the
financial statements and footnotes thereto included in the Partnership's annual
report on Form 10-KSB for the fiscal year ended December 31, 1995.
Certain reclassifications have been made to the 1995 information to conform
to the 1996 presentation.
Note B - Transactions with Affiliated Parties
The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all partnership activities.
The partnership agreement provides for payments (included in operating expenses)
to affiliates for services (based on a percentage of revenue) and for
reimbursement of certain expenses incurred by affiliates on behalf of the
Partnership. Expense reimbursements are included in general and administrative
expenses. The following payments were made to affiliates of Insignia for the
three months ended March 31, 1996 and 1995:
1996 1995
(in thousands)
Property management fees $ 20 $ 20
Reimbursement for services of affiliates 8 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
The Partnership's investment properties consist of three retail centers. The
following table sets forth the average occupancy of the properties for the three
months ended March 31, 1996 and 1995:
Average
Occupancy
1996 1995
Georgetown Landing
Georgetown, South Carolina 94% 94%
Whitehorse Plaza
Greenville, South Carolina 99% 99%
Hitchcock Plaza
Aiken, South Carolina 98% 100%
The Partnership's net loss for the three months ended March 31, 1996, was
$63,000 compared to a net loss of $37,000 for the corresponding period of 1995.
The increase in net loss is primarily due to a decrease in tenant
reimbursements, and an increase in bad debt expense. With these exceptions, the
Partnership's results of operations were comparable to those of the
corresponding period of the prior year.
As part of the ongoing business plan of the Partnership, the Managing General
Partner monitors the rental market environment of each of its investment
properties to assess the feasibility of increasing rents, maintaining or
increasing occupancy levels and protecting the Partnership from increases in
expense. As part of this plan, the Managing General Partner attempts to protect
the Partnership from the burden of inflation-related increases in expenses by
increasing rents and maintaining a high overall occupancy level. However, due
to changing market conditions, which can result in the use of rental concessions
and rental reductions to offset softening market conditions, there is no
guarantee that the Managing General Partner will be able to sustain such a plan.
At March 31, 1996, the Partnership held unrestricted cash of $346,000
compared to $651,000 at March 31, 1995. Net cash provided by operating
activities decreased primarily due to reduced rental revenue collections. Net
cash used in investing activities increased due to an increase in property
improvements and replacements. Net cash used in financing activities increased
due to increased principal payments on mortgage notes payable.
The sufficiency of existing liquid assets to meet future liquidity and
capital expenditure requirements is directly related to the level of capital
expenditures required at the properties to adequately maintain the physical
assets and meet other operating needs of the Partnership. Such assets are
currently thought to be sufficient for any near-term needs of the Partnership.
The mortgage indebtedness of $19,095,000 matures October 10, 1998. Any future
cash distributions will depend on the levels of net cash generated from
operations, property sales, and the availability of cash reserves. No cash
distributions were made during fiscal year 1995 or during the first three months
of 1996.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
Exhibit 27, Financial Data Schedule, is filed as an exhibit to this
report.
(b) Reports on Form 8-K:
None filed during the quarter ended March 31, 1996.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
BRUNNER COMPANIES INCOME PROPERTIES L. P. I,
a Delaware limited partnership
By: Brunner Management Limited
Partnership, an Ohio Limited Partnership,
its General Partner
By: 104 Management, Inc., an Ohio corporation,
its Managing General Partner
By: /s/Carroll D. Vinson
Carroll D. Vinson
President
By: /s/Robert D. Long, Jr.
Robert D. Long, Jr.
Vice President/CAO
Date: May 15, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Brunner
Companies Income Properties L.P. I 1996 First Quarter 10-QSB and is qualified in
its entirety by reference to such 10-QSB filing.
</LEGEND>
<CIK> 0000830737
<NAME> BRUNNER COMPANIES INCOME PROPERTIES LP I
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 346
<SECURITIES> 0
<RECEIVABLES> 105
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 25,038
<DEPRECIATION> 5,194
<TOTAL-ASSETS> 20,488
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 19,095
0
0
<COMMON> 0
<OTHER-SE> 1,202
<TOTAL-LIABILITY-AND-EQUITY> 20,488
<SALES> 0
<TOTAL-REVENUES> 685
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 748
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 435
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (63)
<EPS-PRIMARY> (.10)
<EPS-DILUTED> 0
<FN>
<F1>The Registrant has an unclassified balance sheet.
</FN>
</TABLE>
