<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 June 30, 1997
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.......................................13
Item 6.Exhibits and Reports on Form 8-K........................13
Signatures ..............................................14
* Items 2, 3,4 and 5 are omitted as they are not applicable
<PAGE>
COMMUNITY INVESTMENT PARTNERS, L.P.
BALANCE SHEET
(Unaudited)
June 30, December 31,
1997 1996
ASSETS
Investments at Fair Market Value (cost
$1,411,570 and $1,418,821 respectively)$2,089,749 $ 2,341,691
Cash and Cash Equivalents 152,390 80,365
Accrued Interest Receivable 4,184 3,426
____________ ___________
TOTAL ASSETS $ 2,246,323 $ 2,425,482
=========== ===========
LIABILITIES AND PARTNERSHIP CAPITAL
Liabilities:
Accounts Payable & Accrued Expenses $ - $ 12,100
_____________ __________
TOTAL LIABILITIES - 12,100
_____________ __________
Partnership Capital:
Capital - Limited Partners 1,837,505 1,973,575
Capital - General Partners 408,818 439,807
_____________ __________
TOTAL PARTNERSHIP CAPITAL 2,246,323 2,413,382
_____________ __________
TOTAL LIABILITIES AND PARTNERSHIP
CAPITAL $ 2,246,323 $ 2,425,482
============= ==========
The accompanying notes are an integral part of these financial
statements.
<PAGE>
COMMUNITY INVESTMENT PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS
Company Nature of Business Fair Market
Initial Investment Value
Investment Date Cost June 30, 1997
______________________________________________________________________
Saztec International,
Inc. Provides services for database
(Sazz) construction and information
conversion
June 7, 1990 108,400 shares Common
Stock $ 78,324 $ 23,713
Intermedia
Communications of FloridaOrganized to install and provide
(ICIX) private, dedicated telecommunication
lines using fiber optic cable
May 31, 1991 22,285 shares Common
Stock 62,749 721,477
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
Warrants to purchase
14,440 shares of Common Stock
May 26, 1994 5% Term Notes, due
December 31, 1997 15,008 15,008
Warrants to purchase
2,800 shares of
Common Stock
Citation ComputersProvides clinical
(CITA) laboratory information
October 31, 1991 16,480 shares of Common
Stock 40,410 140,080
The accompanying notes are an integral
part of these financial statements.
<PAGE>
COMMUNITY INVESTMENT PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (cont'd.)
Company Nature of Business Fair Market
Initial Investment Value
Investment Date Cost June 30, 1997
______________________________________________________________________
PDT, Inc. Develops, manufactures
(PDTI) and markets the drug
devices used in Photodynamic
Therapy
May 28, 1992 2,323.50 shares of Common
Stock 9,294 84,808
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
Interests 124,965 124,965
Isolyser Company, Inc. Makes healthcare disposables
from hot-water soluble
polymer
August 30, 199691,563 shares of Common
Stock 350,063 248,941
__________ __________
$1,411,570 $2,089,749
========== ==========
The accompanying notes are an integral
part of these financial statements.
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COMMUNITY INVESTMENT PARTNERS, L.P.
INCOME STATEMENT
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30,June 30,
1997 1996 1997 1996
INCOME
Interest Income $ 697 $ 5,412 $ 758 $ 8,059
Gain on Sale of Investments 78,174 604,185 78,174 1,318,185
_________ _________ _________ _________
TOTAL INCOME 78,871 609,597 78,932 1,326,244
_________ _________ _________ _________
EXPENSES
Professional Fees 774 761 1,300 761
Other - 250 - 250
_________ _________ _________ _________
TOTAL EXPENSES 774 1,011 1,300 1,011
_________ _________ _________ _________
Net Income (Loss) Before
Unrealized Gains (Losses) 78,097 608,586 77,632 1,325,233
Net Unrealized Gain (Loss)
on Sale of Investments 151,664 773,897 (244,691) 1,051,440
_________ _________ _________ _________
NET INCOME (LOSS) $229,761 $1,382,483 $(167,059)$2,376,673
========= ========= ========= =========
Per Unit Information:
Net Income (Loss) $ 2.13 $ 12.82 $ (1.55)$ 22.04
======= ======= ======= =======
Net Asset Value (as of June 30, 1997
and December 31, 1996) $ 20.83 $ 22.38
======= =======
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.
<PAGE>
COMMUNITY INVESTMENT PARTNERS, L.P.
STATEMENT OF CASH FLOWS
(Unaudited)
Six Months Ended June 30,
1997 1996
CASH FLOWS PROVIDED (USED) BY OPERATING
ACTIVITIES:
Net (Loss) Income $ (167,059) $2,376,673
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Purchase of Portfolio Investments (1,197) -
Sale of Portfolio Investments 86,622 1,328,213
Net Realized Gain on Sale of Portfolio
Investments (78,174) (1,318,185)
Unrealized Loss (Gain) on Investments 244,691 (1,051,440)
Interest Rollover into Investment - (5,771)
(Increase) Decrease in Accrued
Interest Receivable (758) 7,384
Decrease in Accounts Payable and
Accrued Expenses (12,100) (43,018)
__________ ________
Net Cash Provided by
Operating Activities 72,025 1,293,856
__________ ________
CASH FLOWS USED BY FINANCING ACTIVITIES:
Distribution to Unitholders - (539,100)
__________ ________
Net Cash Used by Financing Activities - (539,100)
__________ ________
Net Increase in Cash and Cash Equivalents 72,025 754,756
CASH AND EQUIVALENTS, beginning of year 80,365 395,499
__________ ________
CASH AND EQUIVALENTS, end of year $ 152,390 $ 1,150,255
=========== ========
The accompanying notes are an integral part of these financial
statements.
<PAGE>
COMMUNITY INVESTMENT PARTNERS, L.P.
STATEMENT OF CHANGES IN PARTNERSHIP CAPITAL
(Unaudited)
Three Months Ended June 30, 1997 and 1996
Limited General
Partners Partners Totals
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
Balance, December 31, 1996 $1,973,575 $ 439,807 $ 2,413,382
Net (Loss) (136,070) (30,989) (167,059)
___________ ___________ ____________
Balance, June 30, 1997 $1,837,505 $ 408,818 $ 2,246,323
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 income for the three months ended June 30, 1997 and 1996 was
$229,761 and $1,382,483, respectively. Net income for the three month
period ended June 30, 1997, was primarily due to the realized gain of
$78,174 on the sale of 3,000 shares of Intermedia Communications of
Florida and to unrealized gains of approximately $351,000 on
Intermedia Communications of Florida which almost doubled its share
price during the period. These gains were offset by unrealized losses
of approximately ($186,000) on Isolyser Company, Inc., due to the
decline in its share price. Net income for the three month period
ended June 30, 1996, was mainly attributable to realized gains of
$604,185 and unrealized gains of $773,897.
Losses for the six months ended June 30, 1997, were ($167,059),
compared to income of $2,376,673 for the six months ended June 30,
1996. Losses for the six month period ended June 30, 1997 were
attributable primarily to unrealized losses on investments. These
unrealized losses were mainly due to a decline in share price of
Isolyser Company, Inc., which resulted in an unrealized loss during
the six month period of ($392,000). This unrealized loss was offset
by unrealized gains on other investments and realized gains on the
sale of Intermedia Communications of Florida. Income for the six
month period ended June 30, 1996, was mainly due to realized gains of
$530,535 on the sale of Citation Computer Systems, Inc., and realized
gains of $787,650 on Intermedia Communications of Florida, and
unrealized gains of $1,051,440. Cumulative unrealized gains for the
investments totaled $678,179 as of June 30, 1997.
<PAGE>
INVESTMENT TRANSACTIONS
Following is a summary of portfolio investment transactions during the
period ending June 30, 1997.
For the period ending June 30, 1997
Unrealized/Realized
Investment Cost Proceeds Gain (Loss)
___________ __________ _________ _____________
Purchases:
Quarter 1:
Intermedia Communications
of Florida
(exercise of
warrants) $ 1,197 $ - $ 3,828
__________ _________ ___________
Total Purchases $ 1,197 $ - $ -
========= ========= ===========
Sales:
Quarter 2:
Intermedia Communications
of Florida $ 8,448 $ 86,622 $ 78,174
_________ _________ ___________
Total Sales $ 8,448 $ 86,622 $ 78,174
========= ========= ===========
LIQUIDITY AND CAPITAL RESOURCES
The partnership's total capital of $2,246,323 as of June 30, 1997,
consisted of $1,837,505 in limited partner capital and $408,818 in
general partner capital. Net loss for the quarter was allocated to
the limited partners in the amount of $136,070 and to the general
partners in the amount of $30,989. 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
On July 1, 1997, the Partnership sold 10,000 shares of Isolyser
Company, Inc. which resulted in a loss of $11,326.
Also on July 1, 1997, the Partnership sold 2,000 shares of
Intermedia Communications of Florida which resulted in a gain of
<PAGE>
$57,366.
On July 15, 1997, the Partnership sold the remainder of its
investment in PDT, Inc. resulting in a gain of $91,753.
On July 16, 1997, the Partnership sold 2,000 shares of Intermedia
Communications of Florida which resulted in a gain of $61,366.
<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 June 30,
1997.
<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 July 28, 1997
/s/Ray L. Robbins Vice-President
_______________________ and Director July 28, 1997
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 July 28, 1997
Vice-President
_______________________ and Director July 28, 1997
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 June 30, 1997 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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