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FORM 10-Q.--QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
(As last amended in Rel. No. 31326, eff. 10/22/92.)
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: 33-22908-A
NORTH BY NORTHEAST, LTD.
(Exact name of Registrant as specified in its charter)
Tennessee 62-1356792
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification)
4400 Harding Road, Suite 500, Nashville, Tennessee 37201
(Address of principal executive office) (Zip Code)
(615) 292-1040
(Registrant's telephone number, including area code)
Former Address:
(Former name, former address and former fiscal year, if changed
since last report.)
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 Statement
NORTH BY NORTHEAST, LTD.
(A Tennessee Limited Partnership)
FINANCIAL STATEMENTS
For The Six Months Ended June 30, 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>
NORTH BY NORTHEAST, LTD.
(A Limited Partnership)
BALANCE SHEETS
(Unaudited)
ASSETS
<CAPTION>
June 30, December 31,
1997 1996
<S> <C> <C>
INVESTMENTS IN PARTNERSHIP
(note 4) $ 276,845 $ 274,382
CASH 29,639 29,358
Total Assets $306,484 $303,740
======= =======
LIABILITIES AND PARTNERS' EQUITY
ACCRUED INTEREST TO AFFILIATE 13,703 4,585
NOTE PAYABLE TO AFFILIATE 183,889 183,889
ACCOUNTS PAYABLE 5,975 -
PARTNERS' EQUITY 102,916 115,266
Total Liabilities
& Partners' Equity $306,484 $303,740
======= =======
<FN>
See notes to financial statements.
/TABLE
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<TABLE>
NORTH BY NORTHEAST, LTD.
(A Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Quarter to Date Year to Date
Ending June 30,
1997 1996 1997 1996
REVENUES:
<S> <C> <C> <C> <C>
Interest Income $ 897 $ 1,000 $ 897 $ 1,000
Equity in income
of Partnership 5,200 10,474 2,463 5,647
Total Revenues 6,097 11,473 3,360 6,647
EXPENSES:
Legal & Accounting 5,975 1,790 5,975 4,467
Interest Expense 4,585 8,643 9,119 17,286
General & Administrative - 500 617 520
Total expenses 10,560 10,933 15,711 22,273
Net (loss) earnings(4,463) $ 540 $(12,351) $(15,626)
========= ========= ======== ========
<FN>
See notes to financial statements
/TABLE
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<TABLE>
NORTH BY NORTHEAST, LTD.
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Year to date
June 30,
1997 1996
Cash Flows from Operating Activities:
<S> <C> <C>
Net (loss) earnings $ (12,351) $ (15,626)
Adjustments to reconcile Net (Loss) earnings
to Net Cash Used by Operating Activities:
Income from Investment
in Partnership (2,463) (5,647)
Increase in Accrued Interest 9,119 17,286
Change in Accounts Payable 5,975 -
Total Adjustment 12,631 11,639
Net Cash Used in Operating Activities: 280 (3,987)
Net Increase (Decrease)
in Cash Equivalents 280 (3,987)
CASH AT JANUARY 1 29,359 42,479
CASH AT JUNE 30 $ 29,639 $ 38,492
======== ========
<FN>
See notes to financial statements.
/TABLE
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NORTH BY NORTHEAST, 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. INVESTMENT IN LAND PARTNERSHIP
The Partnership has 50% ownership interest in North by Northeast Land
Partners, a general partnership. The remaining 50% is owned by an unrelated
Trammell Crow Company entity. Summarized results of operations of the Land
Partnership are presented below.
<TABLE>
<CAPTION> Statement of Operations
For The Six Months Ending June 30, 1997
REVENUES:
<S> <C>
Miscellaneous 33,004
Rental income 10,923
Total income 43,927
EXPENSES:
Partnership Admin./Prop Mgmt. fees 6,000
Legal and accounting fees 29,009
General and administrative expenses 501
Property maintenance expense 3,490
-------
39,000
NET EARNINGS $ 4,927
Allocation to Trammell Crow entity 2,463
Income from Investment in Partnership 2,463
/TABLE
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Item 2: Management's Discussion and Analysis of
Financial Condition and Results of Operations
Results of Operations
Due to the nature of the Partnership, the majority of its activity on a regular
basis is to accrue interest on the Lender Financing and to reflect the activity
from the investment in North By Northeast Land Partners. The operations of the
Partnership revolve around that of the Land Partnership. Interest and principal
payments are not due until property is sold at the Land Partnership level.
There were no sales in 1997 or 1996. In 1997, interest expense on the Lender
Financing decreased due to a lower debt balance.
Except for the above mentioned fluctuations, operations of the Registrant have
remained comparable and are excepted to be comparable in the future.
Financial Condition and Liquidity
The General Partner does not intend to further develop the property except
development required by sales contracts.
At July 30, 1997, the Registrant had $29,639 in funds to meet its future
operational needs. Since future operations are expected to be comparable to the
recent past, the General Partner believes that the present cash balance will be
sufficient to cover the operating expenses for the year.
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PART II. OTHER INFORMATION
Item 6.Exhibits and Reports on Form 8-K
(a) 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.
NORTH BY NORTHEAST, LTD.
By: 222 NORTH, LTD.
General Partner
Date: August 14, 1997 By: /s/ Steven D. Ezell
General Partner
By: 222 PARTNERS, INC.
General Partner
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> 29639
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 306484
<CURRENT-LIABILITIES> 5975
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 102916
<TOTAL-LIABILITY-AND-EQUITY> 306484
<SALES> 0
<TOTAL-REVENUES> 3360
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 6592
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 9119
<INCOME-PRETAX> (12351)
<INCOME-TAX> 0
<INCOME-CONTINUING> (12351)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (12351)
<EPS-PRIMARY> (6.59)
<EPS-DILUTED> (6.59)
</TABLE>
