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 quarterly period ended June 29, 1998
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: 0-19217
American Tax Credit Properties III L.P.
(Exact name of Registrant as specified in its charter)
Delaware
13-3545006
(State or other jurisdiction of (I.R.S.
Employer
incorporation or organization)
Identification No.)
Richman Tax Credit Properties III L.P.
599 West Putnam Avenue, 3rd Floor
Greenwich, Connecticut
06830
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code: (203) 869-0900
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 filing requirements
for the past 90 days. Yes X No ___.
<PAGE>
AMERICAN TAX CREDIT PROPERTIES III L.P.
PART I - FINANCIAL INFORMATION
<TABLE>
Item 1. Financial Statements
<S> <C>
Table of Contents Page
Balance Sheets as of June 29, 1998 (Unaudited) and March 30, 1998 (Unaudited)............3
Statements of Operations for the three months ended June 29, 1998 (Unaudited)
and June 29, 1997 (Unaudited)........................................................4
Statements of Cash Flows for the three months ended June 29, 1998 (Unaudited)
and June 29, 1997 (Unaudited)........................................................5
Notes to Financial Statements as of June 29, 1998 (Unaudited)............................7
</TABLE>
<PAGE>
AMERICAN TAX CREDIT PROPERTIES III L.P.
BALANCE SHEETS
(UNAUDITED)
<TABLE>
<S> <C> <C> <C>
June 29, March 30,
Notes 1998 1998
----- ---------------- -----------
ASSETS
Cash and cash equivalents $ 488,494 $ 419,372
Restricted cash 4 84,433 84,433
Investments in bonds available-for-sale 3 3,025,565 3,065,441
Investment in local partnerships 4 8,052,922 8,515,114
Interest receivable 30,967 21,909
----------------------------------
$ 11,682,381 $ 12,106,269
============= =============
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
Liabilities
Accounts payable and accrued expenses $ 1,041,402 $ 997,634
Payable to general partner 963,257 930,614
Capital contributions payable 4 84,433 84,433
Other 16,450 16,450
----------------------------------
2,105,542 2,029,131
Commitment and contingencies 4
Partners' equity (deficit)
General partner (220,130) (214,858)
Limited partners (35,883 units of limited partnership
interest outstanding) 9,736,813 10,258,714
Accumulated other comprehensive income 2,3 60,156 33,282
--------------------------------
9,576,839 10,077,138
$ 11,682,381 $ 12,106,269
============= =============
</TABLE>
See Notes to Financial Statements.
<PAGE>
AMERICAN TAX CREDIT PROPERTIES III L.P.
STATEMENTS OF OPERATIONS
THREE MONTHS ENDED JUNE 29, 1998 AND 1997
(UNAUDITED)
<TABLE>
<S> <C> <C> <C>
Notes 1998 1997
----- -------------- ---------
REVENUE
Interest $ 61,859 $ 65,729
Other income from local partnerships 4,172 4,172
------------- --------------
TOTAL REVENUE 66,031 69,901
------------- -------------
EXPENSES
Administration fees 57,643 57,643
Management fees 57,643 57,643
Professional fees 12,412 10,750
Printing, postage and other 9,855 5,900
-------------- --------------
TOTAL EXPENSES 137,553 131,936
------------ ------------
Loss from operations (71,522) (62,035)
Equity in loss of investment in local partnerships 4 (455,651) (515,689)
------------ ------------
NET LOSS (527,173) (577,724)
Other comprehensive income 2,3 26,874 65,815
---------------- --------------
COMPREHENSIVE LOSS $ (500,299) $ (511,909)
============= ============
NET LOSS ATTRIBUTABLE TO
General partner $ (5,272) $ (5,777)
Limited partners (521,901) (571,947)
----------- -----------
$ (527,173) $ (577,724)
=========== ===========
NET LOSS per unit of limited partnership interest
(35,883 units of limited partnership interest) $ (14.54) $ (15.94)
============= =============
</TABLE>
See Notes to Financial Statements.
<PAGE>
AMERICAN TAX CREDIT PROPERTIES III L.P.
STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED JUNE 29, 1998 AND 1997
(UNAUDITED)
<TABLE>
<S> <C> <C>
1997
1998
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received $ 34,551 $ 38,490
Cash paid for
administration fees (25,000) (25,000)
management fees (25,000) (25,000)
professional fees (1,287) (10,000)
printing, postage and other expenses (9,855) (7,451)
-------------- --------------
Net cash used in operating activities (26,591) (28,961)
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES
Cash distributions and other income from local partnerships 10,713 18,559
Redemption of bonds 85,000
Transfer from restricted cash 1,224,775
Investment in a local partnership (1,224,775)
----------------------------
Net cash provided by investing activities 95,713 18,559
-------------- --------------
Net increase (decrease) in cash and cash equivalents 69,122 (10,402)
Cash and cash equivalents at beginning of period 419,372 409,413
------------- -------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 488,494 $ 399,011
============ ============
SIGNIFICANT NON-CASH INVESTING ACTIVITIES
Unrealized gain on investments in bonds available-for-sale, net $ 26,874 $ 65,815
============== =============
</TABLE>
- ---------------------------------------------------------------------------
See reconciliation of net loss to net cash used in operating activities on page
6.
See Notes to Financial Statements.
<PAGE>
AMERICAN TAX CREDIT PROPERTIES III L.P.
STATEMENTS OF CASH FLOWS - (Continued)
THREE MONTHS ENDED JUNE 29, 1998 AND 1997
(UNAUDITED)
<TABLE>
<S> <C> <C>
1998 1997
-------------- ---------
RECONCILIATION OF NET LOSS TO NET CASH USED IN OPERATING
ACTIVITIES
Net loss $ (527,173) $ (577,724)
Adjustments to reconcile net loss to net cash used in
operating activities
Equity in loss of investment in local partnerships 455,651 515,689
Distributions from local partnerships classified as other (4,172) (4,172)
income
Amortization of net premium on investments in bonds 3,314 3,727
Accretion of zero coupon bonds (21,564) (22,063)
Increase in interest receivable (9,058) (8,903)
Increase in payable to general partner 32,643 32,643
Increase in accounts payable and accrued expenses 43,768 31,842
------------- --------------
NET CASH USED IN OPERATING ACTIVITIES $ (26,591) $ (28,961)
============ ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
AMERICAN TAX CREDIT PROPERTIES III L.P.
NOTES TO FINANCIAL STATEMENTS
JUNE 29, 1998
(UNAUDITED)
1. Basis of Presentation
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information. They do not include all information and footnotes
required by generally accepted accounting principles for complete financial
statements. The results of operations are impacted significantly by the
combined results of operations of the Local Partnerships, which are provided
by the Local Partnerships on an unaudited basis during interim periods.
Accordingly, the accompanying financial statements are dependent on such
unaudited information. In the opinion of the General Partner, the financial
statements include all adjustments necessary to present fairly the financial
position as of June 29, 1998 and the results of operations and cash flows
for the interim periods presented. All adjustments are of a normal recurring
nature. The results of operations for the three months ended June 29, 1998
are not necessarily indicative of the results that may be expected for the
entire year.
Certain reclassifications of amounts have been made to conform to the
current period presentation.
2. Comprehensive Income
On March 31, 1998, the Partnership adopted Statement of Financial Accounting
Standard ("SFAS") No. 130, "Reporting Comprehensive Income." As a result,
the statements of operations includes an amount for other comprehensive
income, as well as comprehensive loss. Other comprehensive income consists
of revenues, expenses, gains and losses that have affected partners' equity
(deficit) but which are excluded from net loss. Other comprehensive income
in the accompanying statement of operations for the three months ended June
29, 1998 resulted from a net unrealized gain on investments in bonds
available-for-sale of $26,874. Accumulated other comprehensive income in the
accompanying balance sheet as of June 29, 1998 reflects the cumulative net
unrealized gain on investments in bonds available-for-sale. The balance
sheet as of March 30, 1998 and the statement of operations for the three
months ended June 29, 1997 include certain reclassifications to reflect the
adoption of SFAS No. 130
3. Investments in Bonds Available-For-Sale
As of June 29, 1998, certain information concerning investments in bonds
available-for-sale is as follows:
<TABLE>
<S> <C> <C> <C> <C>
Gross Gross
Amortized unrealized unrealized Estimated
Description and maturity cost gains losses fair
value
Corporate debt securities
Within one year $ 139,555 $ -- $ (647) $ 138,908
After one year through five 539,143 11,864 -- 551,007
years
After five years through ten 602,018 29,323 (587) 630,754
years
After ten years 607,083 1,664 (8,032) 600,715
----------- ----------- ----------- ------------
1,887,799 42,851 (9,266) 1,921,384
----------- ----------- ----------- -----------
U.S. Treasury debt securities
After ten years 1,036,906 27,888 -- 1,064,794
----------- ------------ ---------------------------
U.S. government and agency
securities
After ten years 40,704 -- (1,317) 39,387
-------------- ---------------------------- --------------
$ 2,965,409 $ 70,739 $ (10,583) $ 3,025,565
=========== =========== ========== ===========
</TABLE>
<PAGE>
AMERICAN TAX CREDIT PROPERTIES III L.P.
NOTES TO FINANCIAL STATEMENTS - (Continued)
JUNE 29, 1998
(UNAUDITED)
4. Investment in Local Partnerships
The Partnership owns limited partnership interests in forty-three Local
Partnerships representing capital contributions in the aggregate amount of
$29,264,476, of which the Partnership has paid $29,180,043 and $84,433 are
outstanding as of June 29, 1998. Restricted cash in the accompanying balance
sheet as of June 29, 1998 represents such outstanding capital contribution,
which is payable upon one Local Partnership's satisfaction of specified
conditions related to operations. As of March 31, 1998, the Local
Partnerships have outstanding mortgage loans payable totaling approximately
$86,785,000 and accrued interest payable on such loans totaling
approximately $2,195,000, which are secured by security interests and liens
common to mortgage loans on the Local Partnerships' real property and other
assets.
For the three months ended June 29, 1998, the investment in Local
Partnerships activity consists of the following:
Investment in Local Partnerships as of March $ 8,515,114
30, 1998
Equity in loss of investment in Local (455,651) *
Partnerships
Cash distributions received from Local (10,713)
Partnerships
Cash distributions classified as other income 4,172
----------------
Investment in Local Partnerships as of June $ 8,052,922
29,1998 =============
* Equity in loss of investment in Local Partnerships is limited to the
Partnership's investment balance in each Local Partnership; any excess
is applied to other partners' capital in any such Local Partnership.
The amount of such excess losses applied to other partners' capital was
$356,022 for the three months ended March 31, 1998 as reflected in the
combined statement of operations of the Local Partnerships reflected
herein Note 4.
The combined unaudited balance sheets of the Local Partnerships as of March
31, 1998 and December 31, 1997 and the combined unaudited statements of
operations of the Local Partnerships for the three months ended March 31,
1998 and 1997 are reflected on pages 9 and 10, respectively.
<PAGE>
AMERICAN TAX CREDIT PROPERTIES III L.P.
NOTES TO FINANCIAL STATEMENTS - (Continued)
JUNE 29, 1998
(UNAUDITED)
4. Investment in Local Partnerships (continued)
The combined balance sheets of the Local Partnerships as of March 31, 1998
and December 31, 1997 are as follows:
<TABLE>
<S> <C> <C>
March 31, December 31,
1998 1997
---------------------------
ASSETS
Cash and other investments $ 1,377,343 $ 863,259
Rents receivable 428,550 456,077
Capital contributions receivable 84,433 84,433
Escrow deposits and reserves 3,989,265 4,403,622
Land 3,910,215 3,910,215
Buildings and improvements (net of accumulated depreciation
of $28,049,370 and $27,045,787) 86,599,431 87,586,072
Intangible assets (net of accumulated amortization of
$592,546 and $584,504) 750,457 762,749
Other 1,259,49 1,401,766
--------------------------------
$ 98,399,188 $ 99,468,193
============== =============
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
Liabilities
Accounts payable and accrued expenses $ 428,203 $ 442,564
Due to related parties 5,137,790 5,247,688
Mortgage loans 86,785,499 86,919,773
Notes payable 33,725 62,111
Accrued interest 2,195,490 2,109,721
Other 607,967 580,863
---------------------------------
95,188,674 95,362,720
Partners' equity (deficit)
American Tax Credit Properties III L.P.
Capital contributions, net of distributions (includes
receivable of $84,433) 29,031,317 29,048,449
Cumulative loss (20,978,527) (20,522,876)
-------------- --------------
8,052,790 8,525,573
General partners and other limited partners, including
ATCP II
Capital contributions, net of distributions (140,962) (123,346)
Cumulative loss (4,701,314) (4,296,754)
--------------- ---------------
(4,842,276) (4,420,100)
3,210,514 4,105,473
--------------- ----------
$ 98,399,188 $ 99,468,193
============= =============
</TABLE>
<PAGE>
AMERICAN TAX CREDIT PROPERTIES III L.P.
NOTES TO FINANCIAL STATEMENTS - (Continued)
JUNE 29, 1998
(UNAUDITED)
4. Investment in Local Partnerships (continued)
The combined statements of operations of the Local Partnerships for the
three months ended March 31, 1998 and 1997 are as follows:
<TABLE>
<S> <C> <C>
1998 1997
--------------------------
REVENUE
Rental $ 2,615,715 $ 2,620,956
Interest and other 79,279 81,609
------------- -------------
TOTAL REVENUE 2,694,994 2,702,565
----------- -----------
EXPENSES
Administrative 495,485 509,595
Utilities 279,931 288,693
Operating, maintenance and other 587,786 475,229
Taxes and insurance 329,825 326,318
Financial (including amortization of $12,292 and $11,654) 858,595 883,918
Depreciation 1,003,583 1,016,932
------------ ------------
TOTAL EXPENSES 3,555,205 3,500,685
------------ ------------
NET LOSS $ (860,211) $ (798,120)
=============== ============
NET LOSS ATTRIBUTABLE TO
American Tax Credit Properties III L.P. $ (455,651) $ (515,689)
General partners and other limited partners, including
ATCP II, which includes $356,022 and $214,390 of
American Tax Credit Properties III L.P. loss in excess (404,560) (282,431)
------------ ------------
of investment
$ (860,211) $ (798,120)
============ ============
</TABLE>
The combined results of operations of the Local Partnerships for the three
months ended March 31, 1998 are not necessarily indicative of the results
that may be expected for an entire operating period.
5. Additional Information
Additional information, including the audited March 30, 1998 Financial
Statements and the Organization, Purpose and Summary of Significant
Accounting Policies, is included in the Partnership's Annual Report on Form
10-K for the fiscal year ended March 30, 1998 on file with the Securities
and Exchange Commission.
<PAGE>
AMERICAN TAX CREDIT PROPERTIES III L.P.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Material Changes in Financial Condition
As of June 29, 1998, American Tax Credit Properties III L.P. (the "Registrant")
has not experienced a significant change in financial condition as compared to
March 30, 1998. Principal changes in assets are comprised of periodic
transactions and adjustments and anticipated equity in loss from operations of
the local partnerships (the "Local Partnerships") which own low-income
multifamily residential complexes (the "Properties") which qualify for the
low-income tax credit under Section 42 of the Internal Revenue Code (the
"Low-income Tax Credit"). During the three months ended June 29, 1998,
Registrant received cash from interest revenue, redemption of bonds and
distributions from Local Partnerships and utilized cash for operating expenses.
Cash and cash equivalents and investments in bonds available-for-sale increased,
in the aggregate, by approximately $29,000 during the three months ended June
29, 1998 (which included a net unrealized gain on investments in bonds of
approximately $27,000, the amortization of net premium on investments in bonds
of approximately $3,000 and the accretion of zero coupon bonds of approximately
$22,000). Notwithstanding circumstances that may arise in connection with the
Properties, Registrant does not expect to realize significant gains or losses on
its investments in bonds, if any. During the three months ended June 29, 1998,
the investment in Local Partnerships decreased as a result of Registrant's
equity in the Local Partnerships' net loss for the three months ended March 30,
1998 of $455,651 and cash distributions received from Local Partnerships of
$10,713 (exclusive of distributions from Local Partnerships of $4,172 classified
as other income). Accounts payable and accrued expenses and payable to general
partner in the accompanying balance sheet as of June 29, 1998 represents
deferred administration fees and management fees, respectively.
Results of Operations
Registrant's operating results are dependent upon the operating results of the
Local Partnerships and are significantly impacted by the Local Partnerships'
policies. In addition, the operating results herein are not necessarily the same
for tax reporting. Registrant accounts for its investment in Local Partnerships
in accordance with the equity method of accounting, under which the investment
is carried at cost which includes capital contributions payable, and is adjusted
for Registrant's share of each Local Partnership's results of operations and by
cash distributions received. Equity in loss of each investment in Local
Partnership allocated to Registrant is recognized to the extent of Registrant's
investment balance in each Local Partnership. Equity in loss in excess of
Registrant's investment balance in a Local Partnership is allocated to other
partners' capital in any such Local Partnership. As a result, the reported
equity in loss of investment in Local Partnerships is expected to decrease as
Registrant's investment balances in the respective Local Partnerships become
zero. The combined statements of operations of the Local Partnerships reflected
in Note 4 to Registrant's financial statements include the operating results of
all Local Partnerships, irrespective of Registrant's investment balances.
Cumulative losses and cash distributions in excess of investment in Local
Partnerships may result from a variety of circumstances, including a Local
Partnership's accounting policies, subsidy structure, debt structure and
operating deficits, among other things. Accordingly, cumulative losses and cash
distributions in excess of the investment are not necessarily indicative of
adverse operating results of a Local Partnership. See discussion below under
Local Partnership Matters regarding certain Local Partnerships currently
operating below economic break even levels.
Registrant's operations for the three months ended June 29, 1998 and 1997
resulted in net losses of $527,173 and $577,724, respectively. The decrease in
net loss is primarily attributable to a decrease in equity in loss of investment
in Local Partnerships. The decrease in equity in loss of investment in Local
Partnerships is primarily the result of an increase in the nonrecognition of
losses in excess of Registrant's investment in Local Partnerships of
approximately $142,000 in accordance with the equity method of accounting,
partially offset by Registrant's share of the increase in net loss of the Local
Partnerships of approximately $62,000. Other comprehensive income for the three
months ended June 29, 1998 and 1997 resulted from net unrealized gain on
investments in bonds available-for-sale of $26,874 and $65,815, respectively.
<PAGE>
AMERICAN TAX CREDIT PROPERTIES III L.P.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
(continued)
The Local Partnerships' net loss of approximately $860,000 for the three months
ended March 31, 1998 was attributable to rental and other revenue of
approximately $2,695,000, exceeded by operating and interest expenses (including
interest on non-mandatory debt) of approximately $2,539,000 and approximately
$1,016,000 of depreciation and amortization expenses. The Local Partnership' net
loss of approximately $798,000 for the three months ended March 31, 1997 was
attributable to rental and other revenue of approximately $2,703,000, exceeded
by operating and interest expenses (including interest on non-mandatory debt) of
approximately $2,472,000 and approximately $1,029,000 of depreciation and
amortization expenses. The results of operations of the Local Partnerships for
the three months ended March 31, 1998 are not necessarily indicative of the
results that may be expected in future periods.
Local Partnership Matters
The Properties are principally comprised of subsidized and leveraged low-income
multifamily residential complexes located throughout the United States and
Puerto Rico. The rents of the Properties, many of which receive rental subsidy
payments pursuant to subsidy agreements ("HAP Contracts") are subject to
specific laws, regulations and agreements with federal and state agencies. One
Local Partnership's HAP Contract, which covers certain rental units, is
scheduled to expire in October 1998. In addition, the Local Partnerships have
various financing structures which include (i) required debt service payments
("Mandatory Debt Service") and (ii) debt service payments which are payable only
from available cash flow subject to the terms and conditions of the notes, which
may be subject to specific laws, regulations and agreements with appropriate
federal and state agencies ("Non-Mandatory Debt Service or Interest"). In the
event rents are not sufficient to cover operating expenses, Mandatory Debt
Service requirements and other charges, certain general partners of a local
partnership (the "Local General Partner") are obligated to provide advances to
cover deficits for a certain period of time up to certain amounts (the "Deficit
Guarantee"). A Local General Partner's funding of such Deficit Guarantee is
dependent on its liquidity or ability to borrow the required funds. During the
three months ended March 31, 1998, revenue from operations, Local General
Partner advances and reserves of the Local Partnerships have generally been
sufficient to cover the operating expenses and Mandatory Debt Service.
Substantially all of the Local Partnerships are effectively operating at or near
break even levels, although certain Local Partnerships' operating information
reflects operating deficits that do not represent cash deficits due to their
mortgage and financing structure and any required deferral of property
management fees. However, as discussed below, certain Local Partnerships'
operating information indicates below break even operations after taking into
account their mortgage and financing structure and any required deferral of
property management fees.
The terms of the partnership agreement of the Christian Street Commons
Associates (the "Christian Street Local Partnership") require the Local General
Partners to advance funds to cover operating deficits up to $150,000 through
2008 and to cause the management agent to defer property management fees in
order to avoid a default under the mortgage. The Christian Street Local
Partnership incurred an operating deficit of approximately $6,000 for the three
months ended March 31, 1998, which includes property management fees of
approximately $1,000. Accordingly, the net operating deficit was approximately
$5,000. As of March 31, 1998, the Local General Partners have advanced
approximately $78,000 under their Deficit Guarantee obligation.
Registrant's investment balance in the Christian Street Local Partnership, after
the cumulative equity losses, became zero during the year ended March 30, 1998.
Of Registrant's total annual Low-income Tax Credits, approximately 2% is
allocated from the Christian Street Local Partnership.
The Local General Partner of Fulton Street Houses Limited Partnership (the
"Fulton Street Local Partnership") has escrowed deposits in the name of the
Fulton Street Local Partnership to cover operating deficits. The balance of this
escrow is approximately $250,000 as of March 31, 1998. The mortgage does not
require any Mandatory Debt Service payments during the Compliance Period. The
Fulton Street Local Partnership incurred an operating deficit of approximately
$15,000 for the three months March 31, 1998. Of Registrant's total annual
Low-income Tax Credits, approximately 8% is allocated from the Fulton Street
Local Partnership.
<PAGE>
AMERICAN TAX CREDIT PROPERTIES III L.P.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
(continued)
The terms of the partnership agreement of Sydney Engel Associates L.P. (the
"Sydney Engel Local Partnership") require the management agent to defer property
management fees in order to avoid a default under the mortgage. The Sydney Engel
Local Partnership incurred an operating deficit of approximately $49,000 for the
three months ended March 31, 1998, which includes property management fees of
approximately $26,000. Accordingly, the net operating deficit was approximately
$23,000. As of March 31, 1998, the Sydney Engel Local Partnership has escrowed
deposits of approximately $426,000 to cover operating deficits. Of
Registrant's total annual Low-income Tax Credits, approximately 9% is
allocated from the Sydney Engel Local Partnership.
The terms of the partnership agreement of Batesville Family, L.P. (the
"Batesville Local Partnership") require the management agent to defer property
management fees in order to avoid a default under the mortgage. The Batesville
Local Partnership incurred an operating deficit of approximately $7,000 for the
three months ended March 31, 1998, which includes property management fees of
approximately $500. Of Registrant's total annual income Low-income Tax
Credits, approximately 1% is allocated from the Batesville Local Partnership.
Adoption of Accounting Standard
On March 31, 1998, Registrant adopted Statement of Financial Accounting Standard
("SFAS") No. 130, "Reporting Comprehensive Income." SFAS No. 130 establishes
standards for reporting and display of comprehensive income and its components
(revenues, expenses, gains and losses) in a full set of general-purpose
financial statements. The adoption of SFAS No. 130 has not materially impacted
Registrant's financial position and results of operations.
<PAGE>
AMERICAN TAX CREDIT PROPERTIES III L.P.
Part II - OTHER INFORMATION
Item 1. Legal Proceedings
None
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
None
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
AMERICAN TAX CREDIT PROPERTIES III L.P.
(a Delaware limited partnership)
By: Richman Tax Credit Properties III L.P.,
General Partner
by: Richman Housing Credits Inc.,
general partner
Dated: August 13, 1998 /s/ Richard Paul Richman
--------------- ------------------------
Richard Paul Richman
President, Chief Executive
Officer and Director of the
general partner of the
General Partner
Dated: August 13, 1998 /s/ Neal Ludeke
--------------- ---------------
Neal Ludeke
Vice President and
Treasurer of the general partner
of the General Partner
(Principal Financial and Accounting
Officer of Registrant)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> This schedule contains summary financial information extracted from the
quarter ended June 29, 1998 Form 10Q Balance Sheets and Statements of Operations
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000856135
<NAME> American Tax Credit Properties, III L.P.
<MULTIPLIER> 1000
<CURRENCY> 0
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-30-1999
<PERIOD-START> MAR-31-1998
<PERIOD-END> JUN-29-1998
<EXCHANGE-RATE> 1
<CASH> 573
<SECURITIES> 3,026
<RECEIVABLES> 31
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 11,682
<CURRENT-LIABILITIES> 2,106
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 11,682
<SALES> 0
<TOTAL-REVENUES> 66
<CGS> 0
<TOTAL-COSTS> (138)
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (527)
<INCOME-TAX> 0
<INCOME-CONTINUING> (527)
<DISCONTINUED> 0
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</TABLE>
