SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
_____________
Commission file number 0-18042
_______
COMMUNITY INVESTMENT PARTNERS, L.P.
______________________________________________________________________
(Exact name of registrant as specified in its charter)
MISSOURI 43-1531582
______________________________________________________________________
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
12555 Manchester Road
St. Louis, Missouri 63131
______________________________________________________________________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (314) 515-2000
__________________
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 the past 90
days.
(1) YES X NO (2) YES NO X
____ ____ ____ ____
COMMUNITY INVESTMENT PARTNERS, L.P.
INDEX
Page
Number
Part I.FINANCIAL INFORMATION
Item 1.Financial Statements
Balance Sheet ...........................................3
Schedule of Portfolio Investments .......................4
Income Statement ........................................6
Statement of Cash Flows .................................7
Statement of Changes in Partnership Capital .............8
Notes to Financial Statements ...........................9
Item 2.Management's Discussion and Analysis of Financial
Condition and Results of Operations ....................10
Part II.OTHER INFORMATION *
Item 1.Legal Proceedings.......................................11
Item 6.Exhibits and Reports on Form 8-K........................11
Signatures ..............................................12
* Items 3,4 and 5 are omitted as they are not applicable
COMMUNITY INVESTMENT PARTNERS, L.P.
BALANCE SHEET
(Unaudited)
June 30, December 31,
1996 1995
ASSETS
Cash and cash equivalents $ 1,150,255 $ 395,499
Investments (at fair market value, cost
$1,637,070 and $1,641,327 respectively)4,264,339 3,217,156
Accrued interest receivable 638 8,022
_____________ _____________
Total Assets $ 5,415,232 $ 3,620,677
=========== =============
LIABILITIES AND PARTNERSHIP CAPITAL
Accounts payable & accrued expenses $ - $ 43,018
_____________ _____________
Total Liabilities - 43,018
_____________ _____________
Partnership Capital:
Capital - Limited Partners 4,418,599 2,921,886
Capital - General Partners 996,633 655,773
_____________ _____________
Total Partnership Capital 5,415,232 3,577,659
_____________ _____________
Total Liabilities and Partnership
Capital $ 5,415,232 $ 3,620,677
=========== =============
The accompanying notes are an integral part of these financial
statements.
COMMUNITY INVESTMENT PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 1996
Company Nature of Business Fair Market
Initial Investment Date Investment Cost Value
Saztec International, Inc. Provides services for
(SAZZ) database construction and
information conversion
June 7, 1990 108,400 shares of
Common Stock $78,324 $30,488
Intermedia
Communications, Inc. Organized to install and
(ICIX) provide private, dedicated
telecommunication lines
using fiber optic cable
May 31, 1991 28,000 shares of
Common Stock 78,400 1,451,250
Innovation Medical
Technologies, Inc. Manufactures highly
specialized medical
instruments for use
in ophthalmic surgery
July 26, 1991 5,769 shares of 6% Class A
Cumulative Convertible
Preferred Stock 149,994 149,994
March 11, 1992 5,625 shares of Class B
Convertible Preferred
Stock 90,000 90,000
September 30, 1992 5% Term Notes, due
December 31, 1997. 40,763 40,763
May 26, 1994 5% Term Notes, due
December 31, 1997. 18,508 18,508
Microtek Manufactures disposable
(MTMI) medical products
September 30, 1991 88,221 shares of
Common Stock 556,412 1,323,315
Citation Computers Provider of clinical
(CITA) laboratory information
October 31, 1991 16,480 shares of
Common Stock 40,410 508,380
COMMUNITY INVESTMENT PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 1996
Company Nature of Business Fair Market
Initial Investment Date Investment Cost Value
PDT, Inc. Develops, manufactures
(PDTI) and markets the drugs
devices use in Photodynamic
Therapy.
May 28, 1992 2,323.50 shares of
Common Stock 9,294 76,676
Vision Partners, L.P. Owns stock in Family
Vision Center, Inc., which
operates leased optical
departments in host stores.
October 19, 1992 Limited Partnership
Interests 450,000 450,000
December 1, 1993 Limited Partnership
Interest 124,965 124,965
_________ __________
$1,637,070 $4,264,339
========== ==========
COMMUNITY INVESTMENT PARTNERS, L.P.
INCOME STATEMENT
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30,June 30,
1996 1995 1996 1995
INCOME
Interest income $ 5,412 $ 1,521 $8,059 $2,641
Realized gain on
sale of investments 604,185 4,342 1,318,185 4,342
_________ _________ _________ _________
Total Income 609,597 5,863 1,326,244 6,983
_________ _________ _________ _________
EXPENSES
Amortization of deferred
organizational costs - - - 4,058
Professional fees - - - 7,000
Legal fees 174 - 174 -
Trustee fees 587 229 587 431
Other 250 - 250 250
_________ _________ ___________ __________
Total Expenses 1,011 229 1,011 11,739
_________ _________ ___________ __________
Net income (loss) before
unrealized gains (losses) 608,586 5,634 1,325,233 (4,756)
Net unrealized gain (loss)
on sale of investments 773,897 112,468 1,051,440 (63,361)
_________ _________ ___________ _________
Net income (loss) $1,382,483 $118,102 $2,376,673 $(68,117)
========= ========= =========== ==========
Per unit of Partnership interest:
Net income (loss) $ 12.82 $ 1.10 $ 22.04 $ (.63)
========= ========= =========== ==========
Net asset value
(6/96 and 12/95) $ 50.23 $ 33.18
=========== =========
Units Outstanding:
Limited Partners 87,820 87,820
General Partners 20,000 20,000
The accompanying notes are an integral part of these financial
statements.
COMMUNITY INVESTMENT PARTNERS, L.P.
STATEMENT OF CASH FLOWS
(Unaudited)
Six Months Ended June 30,
1996 1995
CASH FLOWS PROVIDED (USED) BY OPERATING
ACTIVITIES:
Net income (loss) $2,376,673 $(68,117)
Adjustments to reconcile net income to
net cash provided by operating activities:
Amortization of deferred organization
costs - 4,058
Sale of portfolio investment 1,328,213 7,276
Realized gain on portfolio investments(1,318,185) (4,342)
Unrealized (gain) loss on portfolio
investments (1,051,440) 63,361
Interest rollover into investment (5,771) -
Decrease in accrued interest receivable 7,384 297
Decrease in accrued expenses (43,018) (5,100)
_____________ _____________
Net cash provided (used) by
operating activities 1,293,856 (2,567)
_____________ _____________
CASH FLOWS USED BY FINANCING ACTIVITIES:
Distribution to unitholders (539,100) -
_____________ _____________
Net cash used by financing activities (539,100) -
_____________ _____________
Net increase (decrease) in cash and
cash equivalents 754,756 (2,567)
CASH AND EQUIVALENTS, beginning of year 395,499 143,314
_____________ _____________
CASH AND EQUIVALENTS, end of year $ 1,150,255 $ 140,747
=========== =============
The accompanying notes are an integral part of these financial
statements.
COMMUNITY INVESTMENT PARTNERS, L.P.
STATEMENT OF CHANGES IN PARTNERSHIP CAPITAL
(Unaudited)
Three Months Ended June 30, 1995 and 1996
Limited General
Partners Partners Totals
Balance December 31, 1994 $2,632,198 $ 589,800 $3,221,998
Net loss (55,482) (12,635) (68,117)
____________ ____________ ____________
Balance June 30, 1995 $2,576,716 $ 577,165 $3,153,881
Balance, December 31, 1995 $2,921,886 $ 655,773 $3,577,659
Net income 1,935,813 440,860 2,376,673
Distribution (439,100) (100,000) (539,100)
____________ ____________ ____________
Balance, June 30, 1996 $4,418,599 $ 996,633 $5,415,232
The accompanying notes are an integral part of these financial
statements.
COMMUNITY INVESTMENT PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
BASIS OF PRESENTATION
Community Investment Partners, L.P. (CIP) is a limited partnership
which has elected to be a business development company under the
Investment Company Act of 1940, as amended. As a business development
company, the partnership is required to invest at least 70% of its
total assets in qualifying investments as specified in the Investment
Company Act. CIP Management, L.P. (Management), a limited
partnership, is the Managing General Partner of CIP. Management is
responsible for making all decisions regarding CIP's investment
portfolio. CIP is no longer making initial investments.
All portfolio investments are carried at cost until significant
developments affecting an investment provide a basis for revaluation.
Thereafter, portfolio investments are carried at fair value as
obtained from outside sources or at a value determined quarterly by
the Managing General Partner under the supervision of the Independent
General Partners. Investments in securities traded on a national
securities exchange are valued at the latest reported sales price on
the last business day of the period. If no sale has taken place, the
securities are valued at the last bid price. If no bid price has been
reported, or if no exchange quotation is available, the securities are
valued at the quotation obtained from an outside broker.
COMMUNITY INVESTMENT PARTNERS, L.P.
MANAGEMENT'S FINANCIAL DISCUSSION
RESULTS OF OPERATIONS
Net income for the three months ended June 30, 1996 and 1995 was
$1,382,483 and $118,102, respectively. Net income is attributable to
realized gains of $604,185 and unrealized gains of $773,897.
Net income for the six months ended June 30, 1996, was $2,376,673
compared to a net loss of $68,117 for the same period ended 1995. Net
income is primarily attributable to realized gains of $1,318,185 and
unrealized gains of $1,051,440. The Partnership sold shares of
Citation Computer Systems, Inc. and Intermedia Communications of
Florida, which resulted in realized gains of $530,535 and $787,650,
respectively.
CASH FLOWS
Cash flows for the six months ended June 30, 1996, resulted from
operating and financing activities, primarily from the investment
sales and decreased accrued interest receivable. Cash was used to
decrease accounts payable and accrued expenses and make distributions
to unitholders.
FINANCIAL CONDITION
At June 30, 1996, CIP held $3,390,109 in publicly traded
investments. Investments totaling $874,230 were recorded at
historical cost.
CIP owns 108,400 shares of Saztec International, Inc. As of June
30, 1996, the market value of the shares is $30,488. Saztec provides
services for database construction and information conversion.
CIP owns 28,000 shares of common stock in Intermedia
Communications. As of June 30, 1996, the market value of the shares
is $1,451,250. Intermedia was organized to install and provide
private, dedicated telecommunication lines using fiber optic cable.
CIP holds 88,221 shares of common stock in Microtek Medical, Inc.
As of June 30, 1996, the value of the shares is $1,323,315. Microtek
Medical, Inc., is a manufacturer of disposable medical products.
CIP owns 16,480 shares of common stock in Citation Computers. As
of June 30, 1996, the value of the shares is $508,380. Citation is a
provider of clinical laboratory information.
CIP currently owns approximately 2,323 shares of common stock of
PDT, Inc. As of June 30, 1996, the value of the stock is $76,676.
PDT develops, manufactures and markets the drug devices used in
Photodynamic Therapy.
CIP owns 5,769 shares of 6% Class A cumulative convertible
preferred stock and 5,625 shares of Class B convertible preferred
stock in Innovation Medical Technologies, Inc. The value of the stock
is $149,994 and $90,000, respectively. CIP also holds two term notes,
bearing interest at 5%, valued at $59,271. Innovation manufactures
highly specialized medical instrument for rust in ophthalmic surgery.
CIP has invested $574,965 in limited partnership interests in
Vision Partners, L.P. Vision Partners owns stock in Family Vision
Center, Inc., which operates leased optical departments in host
stores.
LIQUIDITY AND CAPITAL RESOURCES
The partnership's total capital of $5,415,232 as of June 30, 1996,
consisted of $4,418,599 in limited partner capital and $996,633 in
general partner capital. Net income for the quarter was allocated to
the limited partners in the amount of $1,935,813 and to the general
partners in the amount of $440,860. During the first quarter, a
$539,100 distribution was made to unitholders. Of this amount,
$439,100 went to limited partners and $100,000 went to general
partners. The partnership intends to invest its cash balances in U.S.
Government securities, investment grade state and municipal bonds,
certificates of deposit at banks with at least $25 million in assets,
or investment grade money market securities sold by banks.
SUBSEQUENT EVENTS
Subsequent to June 30, 1996, a $1,078,200 distribution was made to
unitholders.
COMMUNITY INVESTMENT PARTNERS, L.P.
Item 1: Legal Proceedings
The partnership is not a party to any material pending legal
proceedings.
Item 6: Exhibits and Reports on Form 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
No reports were filed on Form 8-K for the quarter ended June 30,
1996.
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.
COMMUNITY INVESTMENT PARTNERS, L.P.
By: CIP Management, L.P., Managing General Partner
By: CIP Management, Inc., Its Managing General Partner
/s/Daniel A. Burkhardt President, Treasurer
_______________________ and Director
Daniel A. Burkhardt August 7, 1996
/s/Ray L. Robbins Vice-President
_______________________ and Director August 7, 1996
Ray L. Robbins
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.
COMMUNITY INVESTMENT PARTNERS, L.P.
By: CIP Management, L.P., Managing General Partner
By: CIP Management, Inc., Its Managing General Partner
President, Treasurer
_______________________ and Director
Daniel A. Burkhardt August 7, 1996
Vice-President
_______________________ and Director August 7, 1996
Ray L. Robbins
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This schedule contains summary financial information extracted from the
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quarter ended June 30, 1996 and is qualified in its entirety by reference
to such financial statements.
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