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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 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: 33-22908-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)
One Belle Meade Place, 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)
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 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>
NORTH BY NORTHEAST, LTD.
(A Limited Partnership)
BALANCE SHEETS
(Unaudited)
ASSETS
<CAPTION>
March 31, December 31,
1997 1996
<S> <C> <C>
Investment in Partnership
(note B) $271,645 $ 274,382
CASH 28,741 29,358
Total Assets $300,386 $303,740
======= =======
LIABILITIES AND PARTNERS' EQUITY
ACCRUED INTEREST TO AFFILIATE 9,119 4,585
NOTE PAYABLE TO AFFILIATE 183,889 183,889
PARTNERS' EQUITY:
Limited partners (1,875 units
outstanding) 362,896 370,784
General partner (255,518) (255,518)
Total Partners' equity 107,378 115,266
Total Liabilities &
Partners' Equity $300,386 $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 and
Year-to-Date
Ending
March 31,
1997 1996
<S> <C> <C>
REVENUES:
Equity in income of
Partnership $ (2,737) $(4,826)
-------- --------
(2,737) (4,826)
EXPENSES:
Legal & Accounting - 2,677
Interest Expense 4,534 8,643
General & Administrative 617 19
------- -------
Total expenses 5,151 11,339
Net (loss) earnings $(7,888) $(16,165)
======== =======
<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
March 31,
1997 1996
<S> <C> <C>
Cash Flows from Operating Activities:
Net earnings $(7,888) $(16,165)
Adjustments to reconcile
Net (Loss) Earnings to Net
Cash Used in operating Activities:
Loss (Income) from Investment
in Partnership 2,737 4,826
Net Cash Used in
Operating Activities (5,151) (11,339)
Cash Flows from Financing Activities:
Change in Accrued Interest 4,534 8,643
Net Increase (Decrease) in
Cash Equivalents (617) (2,696)
CASH AT JANUARY 1, 29,358 42,479
CASH AT MARCH 31, $28,741 $39,783
======== =======
<FN>
See notes to financial statements.
/TABLE
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NORTH BY NORTHEAST, LTD.
(A Limited Partnership)
NOTES TO 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. 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 Three Months Ending March 31, 1997
<S> <C>
REVENUES:
Miscellaneous 10,623
------
Total Revenues 10,623
EXPENSES:
Partnership Admin./Prop Mgmt. fees 3,000
Legal and accounting fees 9,650
General and administrative expenses 451
Land Maintenance 2,995
Total Expenses $16,096
NET EARNINGS $(5,473)
Allocation:
to Trammell Crow entity $(2,736)
to Partnership $(2,737)
/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
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.
Financial Condition and Liquidity
The General Partner does not intend to further develop
the property except development required by sales
contracts.
At April 30, 1997, the Registrant had $28,741 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 for the
First Quarter of 1996.
(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: May 15, 1997 By: /s/ Steven D. Ezell
General Partner
By: 222 PARTNERS, INC.
General Partner
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> 28741
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 300386
<CURRENT-LIABILITIES> 9119
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 107378
<TOTAL-LIABILITY-AND-EQUITY> 300386
<SALES> 0
<TOTAL-REVENUES> (2737)
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 5151
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (7888)
<INCOME-TAX> 0
<INCOME-CONTINUING> (7888)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (7888)
<EPS-PRIMARY> (4.21)
<EPS-DILUTED> (4.21)
</TABLE>
