<PAGE> 1
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 MARCH 31, 1998 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. YES X NO
--- ---
1
<PAGE> 2
COMMUNITY INVESTMENT PARTNERS, L.P.
<TABLE>
INDEX
<CAPTION>
Page
Number
<S> <C>
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 <F*>
Item 1. Legal Proceedings 12
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 13
<FN>
<F*> Items 2,3,4 and 5 are omitted as they are not applicable
</TABLE>
2
<PAGE> 3
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
COMMUNITY INVESTMENT PARTNERS, L.P.
BALANCE SHEET
(UNAUDITED)
<CAPTION>
March 31, December 31,
1998 1997
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
------
Investments at Fair Value
(cost $1,207,461 and $1,282,944, respectively) $1,663,861 $1,951,068
Cash and Cash Equivalents 52,169 146,085
Accrued Dividend and Interest Receivable 3,617 59,784
---------- ----------
TOTAL ASSETS $1,719,647 $2,156,937
========== ==========
LIABILITIES AND PARTNERSHIP CAPITAL
-----------------------------------
Liabilities:
Accounts Payable and Accrued Expenses $ 16,250 $ 13,000
---------- ----------
TOTAL LIABILITIES 16,250 13,000
---------- ----------
Partnership Capital:
Capital - Limited Partners 1,395,285 1,754,109
Capital - General Partners 308,112 389,828
---------- ----------
TOTAL PARTNERSHIP CAPITAL 1,703,397 2,143,937
---------- ----------
TOTAL LIABILITIES AND
PARTNERSHIP CAPITAL $1,719,647 $2,156,937
========== ==========
- ------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
3
<PAGE> 4
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
COMMUNITY INVESTMENT PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Company Nature of Business Fair Value
Initial Investment Date Investment Cost March 31, 1998
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Saztec International, Inc. Provides services for database
(SAZZ) construction and information
conversion
June 7, 1990 27,100 shares Common Stock $ 78,324 $ 20,325
Intermedia Organized to install and provide
Communications of private, dedicated telecommunication
Florida (ICIX) lines using fiber optic cable
May 31, 1991 6,535 shares Common Stock 18,397 520,349
Innovation Medical Manufactures highly specialized
Technologies, Inc. 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 6% Class B
Convertible Preferred Stock 90,000 90,000
September 30, 1992 Warrants to purchase
14,440 shares of Common Stock
at $2.50 per share, expiring 12/31/00 0 0
May 26, 1994 Warrants to purchase 2,800 shares of
Common Stock at $5.00 per share,
expiring 12/31/02 0 0
Citation Computers Provides clinical
(CITA) laboratory information
October 31, 1991 13,680 shares of Common Stock 33,578 128,250
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
4
<PAGE> 5
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
COMMUNITY INVESTMENT PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------------------------------------------
Company Nature of Business Fair Value
Initial Investment Date Investment Cost March 31, 1998
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
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
(OREX) hot-water soluble polymer
August 30, 1996 68,563 shares of Common Stock 262,203 179,978
---------- ----------
$1,207,461 $1,663,861
========== ==========
- ------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
5
<PAGE> 6
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
COMMUNITY INVESTMENT PARTNERS, L.P.
INCOME STATEMENT
(UNAUDITED)
<CAPTION>
Three Months Three Months
Ended Ended
March 31, 1998 March 31, 1997
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCOME
------
Dividend and Interest Income $ 3,703 $ 61
---------- ----------
TOTAL INCOME 3,703 61
---------- ----------
EXPENSES
--------
Professional Fees 3,986 --
Trustee Fees -- 526
Directors Fees 1,000 --
---------- ----------
TOTAL EXPENSES 4,986 526
---------- ----------
Net Loss before Realized Gains and Unrealized Losses (1,283) (465)
Net Realized Gain on Sale of Investments 527,207 --
Net Unrealized Losses on Investments (211,724) (396,355)
---------- ----------
NET INCOME (LOSS) $ 314,200 $ (396,820)
========== ==========
Per Unit Information:
Net Income (Loss) $ 2.91 $ (3.68)
========== ==========
Net Asset Value (as of March 31, 1998 and
December 31, 1997) $ 15.79 $ 19.88
========== ==========
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.
</TABLE>
6
<PAGE> 7
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
COMMUNITY INVESTMENT PARTNERS, L.P.
STATEMENT OF CASH FLOWS
(UNAUDITED)
<CAPTION>
Three Months Three Months
Ended Ended
March 31, 1998 March 31, 1997
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS PROVIDED (USED) BY OPERATING
ACTIVITIES:
Net Income (Loss) $ 314,200 $ (396,820)
Adjustments to reconcile Net Income (Loss) to Net
Cash Provided (Used) by Operating Activities -
Purchase of Portfolio Investments -- (1,197)
Sale of Portfolio Investments 602,690 --
Net Realized Gain on Sale of Portfolio Investments (527,207) --
Unrealized Loss on Investments 211,724 396,355
Decrease (Increase) in Accrued Interest
Receivable 56,167 (61)
Increase (Decrease) in Accounts Payable
and Accrued Expenses 3,250 (5,610)
---------- ----------
Total Cash Provided (Used) by
Operating Activities 660,824 (7,333)
---------- ----------
CASH FLOWS USED BY FINANCING ACTIVITIES:
Capital Distribution (754,740) --
---------- ----------
Total Cash Used by Financing Activities (754,740) --
---------- ----------
Net Decrease in Cash and Cash Equivalents (93,916) (7,333)
CASH AND EQUIVALENTS, Beginning of year 146,085 80,365
---------- ----------
CASH AND EQUIVALENTS, End of year $ 52,169 $ 73,032
========== ==========
- --------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
7
<PAGE> 8
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
COMMUNITY INVESTMENT PARTNERS, L.P.
STATEMENT OF CHANGES IN PARTNERSHIP CAPITAL
(UNAUDITED)
<CAPTION>
Three Months Ended March 31, 1998 and 1997
Limited Partners General Partners Total
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Balance, December 31, 1996 $ 1,973,575 $ 439,807 $ 2,413,382
Net (Loss) (323,210) (73,610) (396,820)
Distribution -- -- --
----------- ----------- -----------
Balance, March 31, 1997 $ 1,650,365 $ 366,197 $ 2,016,562
=========== =========== ===========
Balance, December 31, 1997 $ 1,754,109 $ 389,828 $ 2,143,937
Net Income 255,916 58,284 314,200
Distribution (614,740) (140,000) (754,740)
----------- ----------- -----------
Balance, March 31, 1998 $ 1,395,285 $ 308,112 $ 1,703,397
=========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
8
<PAGE> 9
Part I. FINANCIAL INFORMATION
Item 1. 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., LLLP (Management), a limited liability 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. Due to the
inherent uncertainty of valuation, those estimated values for portfolio
investments carried at cost may differ significantly from the values that
would have been used had a ready market for the investment existed, and the
differences could be material to the financial statements. 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. Investment
transactions are recorded on a trade date basis. Income is recorded on an
accrual basis.
9
<PAGE> 10
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
COMMUNITY INVESTMENT PARTNERS, L.P.
MANAGEMENT'S FINANCIAL DISCUSSION
RESULTS OF OPERATIONS
Net income for the quarter ended March 31, 1998, was $314, 200,
compared to net loss of $396,820 for the same period ended 1997. This
increase in net income is primarily attributable to realized gains on the
sale of Intermedia Communications of Florida common stock totaling $527,207
during the first quarter of 1998. There was also a net unrealized loss on
investments of $211,724. This was due to reversals of prior period unrealized
gains on stock sold partially offset by unrealized gains recorded on shares
of Isolyser Company, Inc., Citation Computers, and Saztec International,
Inc., as their share prices increased.
In addition, income derived from dividends and interest increased
approximately $3,600 from the quarter ended March 31, 1997 due to dividends
from Innovation Medical Technologies, Inc. 6% Class A and 6% Class B
Preferred Stock. Expenses increased approximately $4,500 from the quarter
ended March 31, 1997 due to audit and tax fees and directors fees.
The Partnership made a distribution of $7 per unit, totaling $754,740,
during the first quarter of 1998.
As of March 31, 1998, unrealized gains on investments totaled $456,400.
The future income or loss of the Partnership is contingent upon the performance
of the portfolio investments.
INVESTMENT TRANSACTIONS
Following is a summary of portfolio investment transactions during the quarter
ending March 31, 1998.
<TABLE>
<CAPTION>
Type of Realized
Company Transaction Cost Proceeds Gain (Loss)
- ------------------------- ------------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Innovation Medical Payment of
Technologies, Inc. Term Note $ 40,763 $ 40,763 $ 0
Innovation Medical Payment of
Technologies, Inc. Term Note 15,008 15,008 0
Intermedia Communications Sale of
of Florida Common Stock 19,712 546,919 527,207
---------- ----------- ----------
Totals $ 75,483 $ 602,690 $ 527,207
========== =========== ==========
</TABLE>
10
<PAGE> 11
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
LIQUIDITY AND CAPITAL RESOURCES
The partnership's total capital of $1,703,397 as of March 31, 1998,
consisted of $1,395,285 in limited partner capital and $308,112 in general
partner capital.
Net income for the quarter was allocated to the limited partners in the
amount of $255,916 and to the general partners in the amount of $58,284.
At March 31, 1998, the Partnership had $52,169 in cash and cash
equivalents.
SUBSEQUENT EVENTS
There were no subsequent events.
11
<PAGE> 12
Part II. OTHER INFORMATION
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 March 31,
1998.
12
<PAGE> 13
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., LLLP, Managing General Partner
By: CIP Management, Inc., its Managing General Partner
<TABLE>
<S> <C> <C>
/s/ Daniel A. Burkhardt
----------------------- President, Treasurer and Director May 15, 1998
Daniel A. Burkhardt
/s/ Ray L. Robbins, Jr.
----------------------- Vice-President and Director May 15, 1998
Ray L. Robbins, Jr.
</TABLE>
13
<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 March 31, 1998 and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 1,207,461
<INVESTMENTS-AT-VALUE> 1,663,861
<RECEIVABLES> 3,617
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,719,647
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 16,250
<TOTAL-LIABILITIES> 16,250
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 107,820
<SHARES-COMMON-PRIOR> 107,820
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 1,703,397
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,703
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 527,207
<APPREC-INCREASE-CURRENT> (211,724)
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> (754,740)
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4,986
<AVERAGE-NET-ASSETS> 1,923,667
<PER-SHARE-NAV-BEGIN> 19.88
<PER-SHARE-NII> 2.91
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (7.00)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.79
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
