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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 September 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 LENDERS, L.P.
(Exact name of Registrant as specified in its charter)
Tennessee 62-1271664
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification)
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
NORTH LENDERS, L.P.
(A Tennessee Limited Partnership)
FINANCIAL STATEMENTS
For the Nine Months Ended September 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 LENDERS, L.P.
(A Limited Partnership)
BALANCE SHEETS
(Unaudited)
ASSETS
<CAPTION>
September 30, December 31,
1997 1996
<S> <C> <C>
CASH $134,684 $249,016
NOTES RECEIVABLE FROM AFFILIATE 83,889 183,889
INTEREST RECEIVABLE FROM AFFILIATE 230 4,585
LOAN COSTS 85,697 97,941
Total Assets $304,501 $535,431
========= ========
LIABILITIES AND PARTNERS' EQUITY
ACCRUED STATE INCOME TAX $30,816 $30,816
PARTNERS' EQUITY:
Limited partners (5,625
units outstanding) 273,685 504,615
General Partner - -
Total partners' equity 273,685 504,615
Total Liabilities &
Partners' Equity $304,501 $535,431
======== ========
<FN>
See notes to financial statements.
</TABLE>
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<TABLE>
NORTH LENDERS, L.P.
(A Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Quarter Ending Year to Date Ending
September 30, September 30,
------------------ ---------------------
1997 1996 1997 1997
------- ------ ------ ------
<S> <C> <C> <C> <C>
REVENUE:
Interest Income $ 4,260 8,739 15,685 27,231
Total Revenue $ 4,260 8,739 15,685 27,239
EXPENSES:
Amortization $ 4,081 4,080 12,243 12,243
Legal & Accounting Fees - - 6,000 4,822
General & Admin. Expenses - - 1,099 375
Total Expenses $ 4,081 4,081 19,342 17,440
NET INCOME $ 179 4,658 (3,657) 9,791
<FN>
See notes to financial statements
</TABLE>
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<TABLE>
NORTH LENDERS, L.P.
(A Limited Partnership)
STATEMENTS OF CASH FLOW
(Unaudited)
<CAPTION>
Year-to-date
September 30,
_____________________________
1997 1996
____ ____
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income $(3,657) 9,791
Adjustments to reconcile
Net Income to Net Cash used in
Operating Activities:
Amortization 12,243 12,243
Additional Accrued Interest (13,329) (26,025)
Interest Pymts. Received
on Note Receivable 17,684 -
Total Adjustments 16,598 (13,782)
Net Cash provided by
Operating Activities 12,941 (3,991)
Cash Flows from Investing Activities:
Change in Note Receivable
from Affiliate 100,000 -
Cash Flows from Financing Activities:
Distribution to Partners (227,273) -
Net Increase/(Decrease) in
Cash and Cash Equivalents (114,332) (3,991)
CASH AT JANUARY 1, 249,016 50,698
CASH AT SEPTEMBER 30, $ 134,684 46,707
========= ========
<FN>
See notes to financial statements.
</TABLE>
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NORTH LENDERS, L.P.
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
For the Nine Months Ended September 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 nine month period ended September 30, 1997 may not be indicative of the
results that may be expected for the year ending December 31, 1997.
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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 September 30, 1997
The Partnership's primary business is to lend monies to North By Northeast,
L.P. ("the Borrower").
Due to the nature of the Registrant, all activity is a result of transactions
in North by Northeast, Ltd. (the "Borrower"), and North by Northeast Land
Partners (the "Land Partnership"), the investment of North by Northeast,
Ltd.
On September 19, 1997, the Land Partnership sold approximately 2 acres for
$250,000. A distribution of $110,000 was paid to the Borrower from the Land
Partnership. The Borrower made a $100,000 principal payment on the Lender
Financing and paid all accrued interest through that date. From these
proceeds and cash reserves, the Registrant distributed $227,273 to the
partners. Operations of the Registrant are comparable to prior quarters with
the exception of interest income. The decline in interest income is due to
a lower principal balance.
Due to the minimal expenses that the Registrant incurs, the General Partner
believes that the present cash balance of $134,684 at October 31, 1997, will
provide sufficient liquidity for the future.
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PART II. OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
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 LENDERS, L.P.
By: 222 NORTH, LTD.
General Partner
Date: November 21, 1997 By:/s/ Steven D. Ezell
General Partner
By: 222 Partners, Inc.
General Partner
Date: November 21, 1997 By:/s/ Michael A. Hartley
Secretary/Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1997
<CASH> 134684
<SECURITIES> 0
<RECEIVABLES> 83889
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 304501
<CURRENT-LIABILITIES> 30816
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 273685
<TOTAL-LIABILITY-AND-EQUITY> 304501
<SALES> 0
<TOTAL-REVENUES> 15685
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 19342
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (3657)
<INCOME-TAX> 0
<INCOME-CONTINUING> (3657)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3657)
<EPS-PRIMARY> (.49)
<EPS-DILUTED> (.49)
</TABLE>
