<PAGE>
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 September 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
____ ____ ____ ____
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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
<PAGE>
COMMUNITY INVESTMENT PARTNERS, L.P.
BALANCE SHEET
(Unaudited)
September 30, December 31,
1996 1995
ASSETS
Cash and cash equivalents $ 232,647 $ 395,499
Investments (at fair market value, cost
$1,572,087 and $1,641,327
respectively) 3,020,372 3,217,156
Accrued interest receivable 638 8,022
_____________ __________
Total Assets $ 3,253,657 $3,620,677
=========== ==========
LIABILITIES AND PARTNERSHIP CAPITAL
Accounts payable & accrued expenses $ - $ 43,018
_____________ ___________
Total Liabilities - 43,018
_____________ ___________
Partnership Capital:
Capital - Limited Partners 2,657,984 2,921,886
Capital - General Partners 595,673 655,773
_____________ __________
Total Partnership Capital 3,253,657 3,577,659
_____________ __________
Total Liabilities and Partnership
Capital $ 3,253,657 $3,620,677
=========== ==========
The accompanying notes are an integral part of these financial
statements.
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COMMUNITY INVESTMENT PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS
Sept. 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 $21,680
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 78,400 819,000
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
Citation Computers Provider of clinical
(CITA) laboratory information
October 31, 1991 16,480 shares of
Common Stock 40,410 220,420
<PAGE>
COMMUNITY INVESTMENT PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS
Sept. 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 72,609
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
Isolyser Company, Inc. Makes healthcare disposables
from hot-water soluble polymer.
August 30, 1996 128,563 shares of
Common Stock 491,429 1,012,433
__________ _________
$1,572,087 $3,020,372
=========== =========
<PAGE>
COMMUNITY INVESTMENT PARTNERS, L.P.
INCOME STATEMENT
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
INCOME
Interest income $ 4,133 $ 1,482 $ 12,191 $4,123
Realized gain on
sale of investments 92,268 369,611 1,410,453 373,953
_________ _________ _________ _________
Total Income 96,401 371,093 1,422,644 378,076
_________ _________ _________ _________
EXPENSES
Amortization of deferred
organizational costs - - - 4,058
Professional fees - - - 7,000
Legal fees - - 174 1,753
Trustee fees 276 245 863 676
Other 515 363 765 613
_________ _________ _________ _________
Total Expenses 791 2,361 1,802 14,100
_________ _________ _________ _________
Net income before unrealized
(losses) gains 95,610 368,732 1,420,842 363,976
Unrealized (loss) gain on
investments (1,178,984) 311,982 (127,544) 248,621
_________ _________ _________ _________
Net income (loss) $(1,083,374)$ 680,71$1,293,298 $612,597
======== ======= ======= =========
Per unit of Partnership interest:
Net income (loss) $ (10.05) $ 6.31 $ 11.99 $ 5.68
======= ======= ======= ========
Net asset value
(9/96 and 12/95) $ 36.15 $ 33.18
======= =======
Units Outstanding:
Limited Partners 87,820
General Partners 20,000
The accompanying notes are an integral part of these financial
statements.
<PAGE>
COMMUNITY INVESTMENT PARTNERS, L.P.
STATEMENT OF CASH FLOWS
(Unaudited)
Nine Months Ended September 30,
1996 1995
CASH FLOWS PROVIDED (USED) BY OPERATING
ACTIVITIES:
Net income $ 1,293,298 $ 612,597
Adjustments to reconcile net income to net
cash provided by operating activities:
Amortization of deferred organization
costs - 4,058
Sale of portfolio investment 1,485,464 484,255
Realized gain on portfolio investments(1,410,453) (372,621)
Unrealized loss (gain) on portfolio
investments 127,544 (248,621)
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 1,454,448 474,865
_____________ _____________
CASH FLOWS USED BY FINANCING ACTIVITIES:
Distribution to unitholders (1,617,300) (539,100)
_____________ _____________
Net cash used by financing activities (1,617,300) (539,100)
_____________ _____________
Net decrease in cash and cash
equivalents (162,852) (64,235)
CASH AND EQUIVALENTS, beginning of year 395,499 143,314
_____________ _____________
CASH AND EQUIVALENTS, end of year $ 232,647 $ 79,079
=========== =============
The accompanying notes are an integral part of these financial
statements.
<PAGE>
COMMUNITY INVESTMENT PARTNERS, L.P.
STATEMENT OF CHANGES IN PARTNERSHIP CAPITAL
(Unaudited)
Nine Months Ended September 30, 1996 and 1995
Limited General
Partners Partners Totals
Balance December 31, 1994 $2,632,198 $ 589,800 $ 3,221,998
Net income 498,963 113,634 612,597
Capital Distribution (439,100) (100,000) (539,100)
________________________ ____________
Balance September 30, 1995 $2,692,061 $ 603,434 $ 3,295,495
Balance, December 31, 1995 $2,921,886 $ 655,773 $ 3,577,659
Net income 1,053,398 239,900 1,293,298
Capital Distribution (1,317,300) (300,000) (1,617,300)
________________________ ____________
Balance, September 30, 1996 $2,657,984 $ 595,673 $ 3,253,657
The accompanying notes are an integral part of these financial
statements.
<PAGE>
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.
<PAGE>
COMMUNITY INVESTMENT PARTNERS, L.P.
MANAGEMENT'S FINANCIAL DISCUSSION
RESULTS OF OPERATIONS
Net loss for the three months ended September 30, 1996 was
$1,083,374, compared to net income of $680,714 for 1995. The loss is
primarily attributable to realized gains of $92,268 and unrealized
losses of $1,178,984.
Net income for the nine months ended September 30, 1996, was
$1,293,298 compared to $612,597 for the same period ended 1995. Net
income is primarily attributable to realized gains of $1,410,453 and
unrealized losses of $127,544. The Partnership sold shares of Citation
Computer Systems, Inc., and Intermedia Communications of Florida and
Isolyser Co., which resulted in realized gains of $530,535, $787,650
and $92,268, respectively.
CASH FLOWS
Cash flows for the nine months ended September 30, 1996, resulted
from operating and financing activities, primarily from the investment
sales and receipt of accrued interest. Cash was used to reduce
accounts payable and accrued expenses and make distributions to
unitholders.
FINANCIAL CONDITION
At September 30, 1996, CIP held $2,146,142 in publicly traded
investments. Investments totaling $874,230 were recorded at
historical cost.
CIP owns 108,400 shares of Saztec International, Inc. As of
September 30, 1996, the market value of the shares is $21,680. Saztec
provides services for database construction and information
conversion.
CIP owns 28,000 shares of common stock in Intermedia
Communications. As of September 30, 1996, the market value of the
<PAGE>
shares is $819,000. Intermedia was organized to install and provide
private, dedicated telecommunication lines using fiber optic cable.
CIP owns 16,480 shares of common stock in Citation Computers. As
of September 30, 1996, the value of the shares is $220,420. Citation
is a provider of clinical laboratory information.
CIP currently owns approximately 2,323 shares of common stock of
PDT, Inc. As of September 30, 1996, the value of the stock is
$72,609. PDT develops, manufactures and markets the drug devices used
in Photodynamic Therapy.
<PAGE>
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.
CIP owns 17,000 shares of Isolyser Company. As of September 30,
1996, the value of the shares is $1,012,433. Isolyser makes health-
care disposables from hot-water soluble polymer.
LIQUIDITY AND CAPITAL RESOURCES
The partnership's total capital of $3,253,657 as of September 30,
1996, consisted of $2,657,984 in limited partner capital and $595,673
in general partner capital. Net income was allocated to the limited
partners in the amount of $1,053,398 and to the general partners in
the amount of $239,900. Distributions in the amount of $1,617,300
were made to unitholders. Of this amount, $1,317,300 went to limited
partners and $300,000 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 September 30, 1996, 3,000 shares of Intermedia
Communications, Inc. and 15,000 shares of Isolyser Company, Inc. were
sold for gains of $91,913 and $59,798, respectively.
<PAGE>
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 September
30, 1996.
<PAGE> 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 November 7, 1996
/s/Ray L. Robbins Vice-President
_______________________ and Director November 7, 1996
Ray L. Robbins
<PAGE>
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 November 7, 1996
Vice-President
_______________________ and Director November 7, 1996
Ray L. Robbins
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements for Community Investment Partners, L.P. for the
quarter ended September 30, 1996 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
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<NAME> COMMUNITY INVESTMENT PARTNERS, L.P.
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