GTWY2
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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 December 31, 1999
Commission File Number 0-19022
Gateway Tax Credit Fund II Ltd.
(Exact name of Registrant as specified in its charter)
Florida 65-0142704
(State or other jurisdiction of ( I.R.S. Employer No.)
incorporation or organization)
880 Carillon Parkway, St. Petersburg, Florida 33716
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (727)573-3800
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
Number of Units
Title of Each Class December 31, 1999
Beneficial Assignee Certificates:
$1,000 per certificate 37,228
DOCUMENTS INCORPORATED BY REFERENCE
Parts I and II, 1998 Form 10-K, filed with the
Securities and Exchange Commission on July 13, 1999
Parts III and IV - Form S-11 Registration Statement
and all amendments and supplements thereto
File No. 33-31821
PART I - Financial Information
Item 1. Financial Statements
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 2 December 31, March 31,
1999 1999
--------- ----------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 182,963 $ 169,513
Investments in Securities 50,942 49,538
------------ ------------
Total Current Assets 233,905 219,051
Investments in Securities 269,267 302,427
Investments in Project Partnerships, Net 136,426 331,579
------------- -------------
Total Assets $ 639,598 $ 853,057
============= =============
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners 42,513 44,229
------------- -------------
Total Current Liabilities 42,513 44,229
------------- -------------
Long-Term Liabilities:
Payable to General Partners 345,989 326,949
------------- -------------
Partners' Equity:
Assignor Limited Partner
Units of limited partnership interest
consisting of 40,000 authorized BAC's, of
which 37,228 at December 31, 1999 and
March 31,1999 have been issued to the
assignees
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $1,000 stated
value per BAC, 37,228 at December 31,
1999 and March 31,1999, issued and
outstanding 302,385 530,860
General Partners (51,289) (48,981)
------------- -------------
Total Partners' Equity 251,096 481,879
------------- -------------
Total Liabilities and Partners' Equity $ 639,598 $ 853,057
============= =============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 3 December 31, March 31,
1999 1999
--------- ----------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 149,682 $ 137,981
Investments in Securities 45,312 44,063
------------ ------------
Total Current Assets 194,994 182,044
Investments in Securities 239,507 269,002
Investments in Project Partnerships, Net 85,092 218,820
------------- -------------
Total Assets $ 519,593 $ 669,866
============= =============
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners 46,618 48,298
------------- -------------
Total Current Liabilities 46,618 48,298
------------- -------------
Long-Term Liabilities:
Payable to General Partners 255,292 248,238
------------- -------------
Partners' Equity:
Assignor Limited Partner
Units of limited partnership interest
consisting of 40,000 authorized BAC's, of
which 37,228 at December 31, 1999 and
March 31, 1999 have been issued to the
assignees
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $1,000 stated
value per BAC, 37,228 at December 31,
1999 and March 31, 1999, issued and
outstanding 263,321 417,412
General Partners (45,638) (44,082)
------------- -------------
Total Partners' Equity 217,683 373,330
------------- -------------
Total Liabilities and Partners' Equity $ 519,593 $ 669,866
============= =============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 4 December 31, March 31,
1999 1999
--------- ----------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 223,253 $ 207,632
Investments in Securities 57,406 55,823
------------ ------------
Total Current Assets 280,659 263,455
Investments in Securities 303,432 340,799
Investments in Project Partnerships, Net 491,106 676,348
------------- -------------
Total Assets $ 1,075,197 $ 1,280,602
============= =============
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners 51,574 53,248
------------- -------------
Total Current Liabilities 51,574 53,248
------------- -------------
Long-Term Liabilities:
Payable to General Partners 330,154 312,891
------------- -------------
Partners' Equity:
Assignor Limited Partner
Units of limited partnership interest
consisting of 40,000 authorized BAC's, of
which 37,228 at December 31, 1999 and
March 31, 1999 have been issued to the
assignees
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $1,000 stated
value per BAC, 37,228 at December 31,
1999 and March 31, 1999, issued and
outstanding 747,188 965,972
General Partners (53,719) (51,509)
------------- -------------
Total Partners' Equity 693,469 914,463
------------- -------------
Total Liabilities and Partners' Equity $ 1,075,197 $ 1,280,602
============= =============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 5 December 31, March 31,
1999 1999
--------- ----------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 307,249 $ 292,994
Investments in Securities 71,549 69,576
------------ ------------
Total Current Assets 378,798 362,570
Investments in Securities 378,188 424,763
Investments in Project Partnerships, Net 945,512 1,145,581
------------- -------------
Total Assets $ 1,702,498 $ 1,932,914
============= =============
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners 69,345 71,427
------------- -------------
Total Current Liabilities 69,345 71,427
------------- -------------
Long-Term Liabilities:
Payable to General Partners 323,576 308,232
------------- -------------
Partners' Equity:
Assignor Limited Partner
Units of limited partnership interest
consisting of 40,000 authorized BAC's, of
which 37,228 at December 31, 1999 and
March 31,1999 have been issued to the
assignees
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $1,000 stated
value per BAC, 37,228 at December 31,
1999 and March 31,1999, issued and
outstanding 1,372,105 1,613,346
General Partners (62,528) (60,091)
------------- -------------
Total Partners' Equity 1,309,577 1,553,255
------------- -------------
Total Liabilities and Partners' Equity $ 1,702,498 $ 1,932,914
============= =============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 6 December 31, March 31,
1999 1999
--------- ----------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 352,673 $ 408,672
Investments in Securities 54,861 52,341
------------ ------------
Total Current Assets 407,534 461,013
Investments in Securities 366,656 347,635
Investments in Project Partnerships, Net 2,026,224 2,464,086
------------- -------------
Total Assets $ 2,800,414 $ 3,272,734
============= =============
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners 64,269 67,059
------------- -------------
Total Current Liabilities 64,269 67,059
------------- -------------
Long-Term Liabilities:
Payable to General Partners 414,258 388,370
------------- -------------
Partners' Equity:
Assignor Limited Partner
Units of limited partnership interest
consisting of 40,000 authorized BAC's, of
which 37,228 at December 31, 1999 and
March 31,1999 have been issued to the
assignees
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $1,000 stated
value per BAC, 37,228 at December 31,
1999 and March 31, 1999, issued and
outstanding 2,387,394 2,877,858
General Partners (65,507) (60,553)
------------- -------------
Total Partners' Equity 2,321,887 2,817,305
------------- -------------
Total Liabilities and Partners' Equity $ 2,800,414 $ 3,272,734
============= =============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
TOTAL SERIES 2 - 6 December 31, March 31,
1999 1999
--------- ----------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 1,215,820 $ 1,216,792
Investments in Securities 280,070 271,341
------------ ------------
Total Current Assets 1,495,890 1,488,133
Investments in Securities 1,557,050 1,684,626
Investments in Project Partnerships, Net 3,684,360 4,836,414
------------- -------------
Total Assets $ 6,737,300 $ 8,009,173
============= =============
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners 274,319 284,261
------------- -------------
Total Current Liabilities 274,319 284,261
------------- -------------
Long-Term Liabilities:
Payable to General Partners 1,669,269 1,584,680
------------- -------------
Partners' Equity:
Assignor Limited Partner
Units of limited partnership interest
consisting of 40,000 authorized BAC's, of
which 37,228 at December 31, 1999 and
March 31, 1999 have been issued to the
assignees
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $1,000 stated
value per BAC, 37,228 at December 31,
1999 and March 31, 1999, issued and
outstanding 5,072,392 6,405,448
General Partners (278,680) (265,216)
------------- -------------
Total Partners' Equity 4,793,712 6,140,232
------------- -------------
Total Liabilities and Partners' Equity $ 6,737,300 $ 8,009,173
============= =============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 2 1999 1998
---- ----
Revenues:
Interest Income $ 8,413 $ 8,489
------------ ------------
Expenses:
Asset Management Fee-General Partner 17,162 17,193
General and Administrative:
General Partner 1,745 1,313
Other 971 3,947
Amortization 1,212 1,345
------------ ------------
Total Expenses 21,090 23,798
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (12,677) (15,309)
Equity in Losses of Project Partnerships (64,347) (224,967)
------------ ------------
Net Loss $ (77,024) $ (240,276)
============ ============
Allocation of Net Loss:
Assignees (76,254) (237,873)
General Partners (770) (2,403)
------------ ------------
$ (77,024) $ (240,276)
============ ============
Net Loss Per Beneficial
Assignee Certificate $ (12.43) $ (38.77)
Number of Beneficial Assignee ============ ============
Certificates Outstanding 6,136 6,136
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 3 1999 1998
---- ----
Revenues:
Interest Income $ 7,300 $ 7,360
------------ ------------
Expenses:
Asset Management Fee-General Partner 15,870 15,911
General and Administrative:
General Partner 1,825 1,402
Other 1,056 1,258
Amortization 760 1,115
------------ ------------
Total Expenses 19,511 19,686
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (12,211) (12,326)
Equity in Losses of Project Partnerships (62,128) (75,156)
------------ ------------
Net Loss $ (74,339) $ (87,482)
============ ============
Allocation of Net Loss:
Assignees (73,596) (86,607)
General Partners (743) (875)
------------ ------------
$ (74,339) $ (87,482)
============ ============
Net Loss Per Beneficial
Assignee Certificate $ (13.49) $ (15.87)
Number of Beneficial Assignee ============ ============
Certificates Outstanding 5,456 5,456
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 4 1999 1998
---- ----
Revenues:
Interest Income $ 9,707 $ 9,766
------------ ------------
Expenses:
Asset Management Fee-General Partner 19,497 19,533
General and Administrative:
General Partner 2,301 1,731
Other 1,800 1,690
Amortization 1,932 2,264
------------ ------------
Total Expenses 25,530 25,218
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (15,823) (15,452)
Equity in Losses of Project Partnerships (39,732) (178,955)
------------ ------------
Net Loss $ (55,555) $ (194,407)
============ ============
Allocation of Net Loss:
Assignees (54,999) (192,463)
General Partners (556) (1,944)
------------ ------------
$ (55,555) $ (194,407)
============ ============
Net Loss Per Beneficial Assignee
Certificate $ (7.95) $ (27.83)
Number of Beneficial Assignee ============ ============
Certificates Outstanding 6,915 6,915
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 5 1999 1998
---- ----
Revenues:
Interest Income $ 12,448 $ 12,507
------------ ------------
Expenses:
Asset Management Fee-General Partner 24,115 24,166
General and Administrative:
General Partner 2,857 2,148
Other 1,716 4,680
Amortization 1,632 3,256
------------ ------------
Total Expenses 30,320 34,250
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (17,872) (21,743)
Equity in Losses of Project Partnerships (68,472) (356,986)
------------ ------------
Net Loss $ (86,344) $ (378,729)
============ ============
Allocation of Net Loss:
Assignees (85,480) (374,942)
General Partners (864) (3,787)
------------ ------------
$ (86,344) $ (378,729)
============ ============
Net Loss Per Beneficial Assignee
Certificate $ (9.92) $ (43.52)
Number of Beneficial Assignee ============ ============
Certificates Outstanding 8,616 8,616
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 6 1999 1998
---- ----
Revenues:
Interest Income $ 11,905 $ 11,705
------------ ------------
Expenses:
Asset Management Fee-General Partner 26,704 26,780
General and Administrative:
General Partner 3,015 2,283
Other 1,720 2,259
Amortization 4,014 4,855
------------ ------------
Total Expenses 35,453 36,177
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (23,548) (24,472)
Equity in Losses of Project Partnerships (76,542) (284,840)
------------ ------------
Net Loss $ (100,090) $ (309,312)
============ ============
Allocation of Net Loss:
Assignees (99,089) (306,219)
General Partners (1,001) (3,093)
------------ ------------
$ (100,090) $ (309,312)
============ ============
Net Loss Per Beneficial Assignee
Certificate $ (9.81) $ (30.30)
Number of Beneficial Assignee ============ ============
Certificates Outstanding 10,105 10,105
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(Unaudited)
TOTAL SERIES 2 - 6 1999 1998
---- ----
Revenues:
Interest Income $ 49,773 $ 49,827
------------ ------------
Expenses:
Asset Management Fee-General Partner 103,348 103,583
General and Administrative:
General Partner 11,743 8,877
Other 7,263 13,834
Amortization 9,550 12,835
------------ ------------
Total Expenses 131,904 139,129
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (82,131) (89,302)
Equity in Losses of Project Partnerships (311,221) (1,120,904)
------------ ------------
Net Loss $ (393,352) $(1,210,206)
============ ============
Allocation of Net Loss:
Assignees (389,419) (1,198,104)
General Partners (3,933) (12,102)
------------ ------------
$ (393,352) $(1,210,206)
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 2 1999 1998
---- ----
Revenues:
Interest Income $ 24,630 $ 26,359
------------ ------------
Expenses:
Asset Management Fee-General Partner 51,486 51,579
General and Administrative:
General Partner 6,223 5,835
Other 8,314 10,822
Amortization 3,636 4,035
------------ ------------
Total Expenses 69,659 72,271
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (45,029) (45,912)
Equity in Losses of Project Partnerships (185,754) (319,676)
------------ ------------
Net Loss $ (230,783) $ (365,588)
============ ============
Allocation of Net Loss:
Assignees (228,475) (361,932)
General Partners (2,308) (3,656)
------------ ------------
$ (230,783) $ (365,588)
============ ============
Net Loss Per Beneficial
Assignee Certificate $ (37.24) $ (58.99)
Number of Beneficial Assignee ============ ============
Certificates Outstanding 6,136 6,136
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 3 1999 1998
---- ----
Revenues:
Interest Income $ 21,435 $ 22,731
------------ ------------
Expenses:
Asset Management Fee-General Partner 47,610 47,733
General and Administrative:
General Partner 6,506 6,129
Other 7,995 8,661
Amortization 2,280 3,345
------------ ------------
Total Expenses 64,391 65,868
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (42,956) (43,137)
Equity in Losses of Project Partnerships (112,691) (227,683)
------------ ------------
Net Loss $ (155,647) $ (270,820)
============ ============
Allocation of Net Loss:
Assignees (154,091) (268,112)
General Partners (1,556) (2,708)
------------ ------------
$ (155,647) $ (270,820)
============ ============
Net Loss Per Beneficial
Assignee Certificate $ (28.24) $ (49.14)
Number of Beneficial Assignee ============ ============
Certificates Outstanding 5,456 5,456
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 4 1999 1998
---- ----
Revenues:
Interest Income $ 28,316 $ 29,747
------------ ------------
Expenses:
Asset Management Fee-General Partner 58,491 58,599
General and Administrative:
General Partner 8,199 7,692
Other 10,096 10,612
Amortization 5,796 6,042
------------ ------------
Total Expenses 82,582 82,945
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (54,266) (53,198)
Equity in Losses of Project Partnerships (166,728) (213,692)
------------ ------------
Net Loss $ (220,994) $ (266,890)
============ ============
Allocation of Net Loss:
Assignees (218,784) (264,221)
General Partners (2,210) (2,669)
------------ ------------
$ (220,994) $ (266,890)
============ ============
Net Loss Per Beneficial Assignee
Certificate $ (31.64) $ (38.21)
Number of Beneficial Assignee ============ ============
Certificates Outstanding 6,915 6,915
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 5 1999 1998
---- ----
Revenues:
Interest Income $ 36,294 $ 38,262
------------ ------------
Expenses:
Asset Management Fee-General Partner 72,345 72,498
General and Administrative:
General Partner 10,184 9,548
Other 12,055 16,944
Amortization 4,896 9,768
------------ ------------
Total Expenses 99,480 108,758
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (63,186) (70,496)
Equity in Losses of Project Partnerships (180,492) (605,247)
------------ ------------
Net Loss $ (243,678) $ (675,743)
============ ============
Allocation of Net Loss:
Assignees (241,241) (668,986)
General Partners (2,437) (6,757)
------------ ------------
$ (243,678) $ (675,743)
============ ============
Net Loss Per Beneficial Assignee
Certificate $ (28.00) $ (77.64)
Number of Beneficial Assignee ============ ============
Certificates Outstanding 8,616 8,616
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 6 1999 1998
---- ----
Revenues:
Interest Income $ 34,665 $ 36,218
------------ ------------
Expenses:
Asset Management Fee-General Partner 80,112 80,340
General and Administrative:
General Partner 10,749 10,093
Other 12,695 14,616
Amortization 12,042 14,565
------------ ------------
Total Expenses 115,598 119,614
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (80,933) (83,396)
Equity in Losses of Project Partnerships (414,485) (623,238)
------------ ------------
Net Loss $ (495,418) $ (706,634)
============ ============
Allocation of Net Loss:
Assignees (490,464) (699,568)
General Partners (4,954) (7,066)
------------ ------------
$ (495,418) $ (706,634)
============ ============
Net Loss Per Beneficial Assignee
Certificate $ (48.54) $ (69.23)
Number of Beneficial Assignee ============ ============
Certificates Outstanding 10,105 10,105
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
TOTAL SERIES 2 - 6 1999 1998
---- ----
Revenues:
Interest Income $ 145,340 $ 153,317
------------ ------------
Expenses:
Asset Management Fee-General Partner 310,044 310,749
General and Administrative:
General Partner 41,861 39,297
Other 51,155 61,655
Amortization 28,650 37,755
------------ ------------
Total Expenses 431,710 449,456
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (286,370) (296,139)
Equity in Losses of Project Partnerships (1,060,150) (1,989,536)
------------ ------------
Net Loss $(1,346,520) $(2,285,675)
============ ============
Allocation of Net Loss:
Assignees (1,333,056) (2,262,819)
General Partners (13,464) (22,856)
------------ ------------
$(1,346,520) $(2,285,675)
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 31, 1999 AND 1998
(Unaudited)
General
SERIES 2 Assignees Partners Total
--------- -------- -----
Balance at March 31, 1998 $ 749,952 $ (46,768) $ 703,184
Net Loss (361,932) (3,656) (365,588)
------------- ------------ -------------
Balance at December 31,1998 $ 388,020 $ (50,424) $ 337,596
============= ============ =============
Balance at March 31, 1999 $ 530,860 $ (48,981) $ 481,879
Net Loss (228,475) (2,308) (230,783)
------------- ------------ -------------
Balance at December 31,1999 $ 302,385 $ (51,289) $ 251,096
============= ============ =============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 31, 1999 AND 1998
(Unaudited)
General
SERIES 3 Assignees Partners Total
--------- -------- -----
Balance at March 31, 1998 $ 602,863 $ (42,209) $ 560,654
Net Loss (268,112) (2,708) (270,820)
------------- ------------ -------------
Balance at December 31,1998 $ 334,751 $ (44,917) $ 289,834
============= ============ =============
Balance at March 31, 1999 $ 417,412 $ (44,082) $ 373,330
Net Loss (154,091) (1,556) (155,647)
------------- ------------ -------------
Balance at December 31,1999 $ 263,321 $ (45,638) $ 217,683
============= ============ =============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 31, 1999 AND 1998
(Unaudited)
General
SERIES 4 Assignees Partners Total
--------- -------- -----
Balance at March 31, 1998 $ 1,311,156 $ (48,022) $ 1,263,134
Net Loss (264,221) (2,669) (266,890)
------------- ------------ -------------
Balance at December 31,1998 $ 1,046,935 $ (50,691) $ 996,244
============= ============ =============
Balance at March 31, 1999 $ 965,972 $ (51,509) $ 914,463
Net Loss (218,784) (2,210) (220,994)
------------- ------------ -------------
Balance at December 31,1999 $ 747,188 $ (53,719) $ 693,469
============= ============ =============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 31, 1999 AND 1998
(Unaudited)
General
SERIES 5 Assignees Partners Total
--------- -------- -----
Balance at March 31, 1998 $ 2,012,865 $ (56,055) $ 1,956,810
Net Loss (668,986) (6,757) (675,743)
------------- ------------ -------------
Balance at December 31,1998 $ 1,343,879 $ (62,812) $ 1,281,067
============= ============ =============
Balance at March 31, 1999 $ 1,613,346 $ (60,091) $ 1,553,255
Net Loss (241,241) (2,437) (243,678)
------------- ------------ -------------
Balance at December 31,1999 $ 1,372,105 $ (62,528) $ 1,309,577
============= ============ =============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 31, 1999 AND 1998
(Unaudited)
General
SERIES 6 Assignees Partners Total
--------- -------- -----
Balance at March 31, 1998 $ 3,572,169 $ (53,540) $ 3,518,629
Net Loss (699,568) (7,066) (706,634)
------------- ------------ -------------
Balance at December 31,1998 $ 2,872,601 $ (60,606) $ 2,811,995
============= ============ =============
Balance at March 31, 1999 $ 2,877,858 $ (60,553) $ 2,817,305
Net Loss (490,464) (4,954) (495,418)
------------- ------------ -------------
Balance at December 30,1999 $ 2,387,394 $ (65,507) $ 2,321,887
============= ============ =============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 30, 1999 AND 1998
(Unaudited)
General
TOTAL SERIES 2 - 6 Assignees Partners Total
--------- -------- -----
Balance at March 31, 1998 $ 8,249,005 $ (246,594) $ 8,002,411
Net Loss (2,262,819) (22,856) (2,285,675)
------------- ------------ -------------
Balance at December 31,1998 $ 5,986,186 $ (269,450) $ 5,716,736
============= ============ =============
Balance at March 31, 1999 $ 6,405,448 $ (265,216) $ 6,140,232
Net Loss (1,333,056) (13,464) (1,346,520)
------------- ------------ -------------
Balance at December 31,1999 $ 5,072,392 $ (278,680) $ 4,793,712
============= ============ =============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31, 1999 AND 1998
(Unaudited)
SERIES 2 1999 1998
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (230,783) $ (365,588)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 3,636 4,035
Accreted Interest Income on Investments
in Securities (17,782) (19,051)
Equity in Losses of Project
Partnerships 185,754 319,676
Interest Income from Redemption of
Securities 20,241 16,834
Changes in Operating Assets and
Liabilities:
Increase in Payable to General
Partners 17,324 14,806
------------ ------------
Net Cash Used in Operating Activities (21,610) (29,288)
------------ ------------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 5,763 6,850
Redemption of Investment in Securities 29,297 30,668
------------ ------------
Net Cash Provided by Investing
Activities 35,060 37,518
------------ ------------
Increase (Decrease) in Cash and Cash
Equivalents 13,450 8,230
Cash and Cash Equivalents at Beginning of
Year 169,513 160,851
------------ ------------
Cash and Cash Equivalents at End of Year $ 182,963 $ 169,081
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31, 1999 AND 1998
(Unaudited)
SERIES 3 1999 1998
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (155,647) $ (270,820)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 2,280 3,345
Accreted Interest Income on Investments
in Securities (15,816) (16,946)
Equity in Losses of Project
Partnerships 112,691 227,683
Interest Income from Redemption of
Securities 18,004 14,974
Changes in Operating Assets and
Liabilities:
Increase in Payable to General
Partners 5,373 (4,250)
------------ ------------
Net Cash Provided by (Used in)
Operating Activities (33,115) (46,014)
------------ ------------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 18,757 16,276
Redemption of Investment in Securities 26,059 27,278
------------ ------------
Net Cash Provided by (Used in)
Investing Activities 44,816 43,554
------------ ------------
Increase (Decrease) in Cash and Cash
Equivalents 11,701 (2,460)
Cash and Cash Equivalents at Beginning of
Year 137,981 135,622
------------ ------------
Cash and Cash Equivalents at End of Year $ 149,682 $ 133,162
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31, 1999 AND 1998
(Unaudited)
SERIES 4 1999 1998
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (220,994) $ (266,890)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 5,796 6,042
Accreted Interest Income on Investments
in Securities (20,038) (21,468)
Equity in Losses of Project
Partnerships 166,728 213,692
Interest Income from Redemption of
Securities 22,808 18,970
Changes in Operating Assets and
Liabilities:
Increase in Payable to General
Partners 15,588 10,660
------------ ------------
Net Cash Provided by (Used in)
Operating Activities (30,112) (38,994)
------------ ------------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 12,718 13,882
Redemption of Investment in Securities 33,015 34,559
------------ ------------
Net Cash Provided by (Used in)
Investing Activities 45,733 48,441
------------ ------------
Increase (Decrease) in Cash and Cash
Equivalents 15,621 9,447
Cash and Cash Equivalents at Beginning of
Year 207,632 196,876
------------ ------------
Cash and Cash Equivalents at End of Year $ 223,253 $ 206,323
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31, 1999 AND 1998
(Unaudited)
SERIES 5 1999 1998
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (243,678) $ (675,743)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 4,896 9,768
Accreted Interest Income on Investments
in Securities (24,975) (26,758)
Equity in Losses of Project
Partnerships 180,492 605,247
Interest Income from Redemption of
Securities 28,428 23,644
Changes in Operating Assets and
Liabilities:
Increase in Payable to General
Partners 13,263 10,076
------------ ------------
Net Cash Provided by (Used in)
Operating Activities (41,574) (53,766)
------------ ------------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 14,681 16,474
Redemption of Investment in Securities 41,148 43,073
------------ ------------
Net Cash Provided by (Used in)
Investing Activities 55,829 59,547
------------ ------------
Increase (Decrease) in Cash and Cash
Equivalents 14,255 5,781
Cash and Cash Equivalents at Beginning of
Year 292,994 280,813
------------ ------------
Cash and Cash Equivalents at End of Year $ 307,249 $ 286,594
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31, 1999 AND 1998
(Unaudited)
SERIES 6 1999 1998
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (495,418) $ (706,634)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 12,042 14,565
Accreted Interest Income on Investments
in Securities (21,542) (22,315)
Equity in Losses of Project
Partnerships 414,485 623,238
Interest Income from Redemption of
Securities 0 0
Changes in Operating Assets and
Liabilities:
Increase in Payable to General
Partners 23,099 17,910
------------ ------------
Net Cash Provided by (Used in)
Operating Activities (67,334) (73,236)
------------ ------------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 11,335 12,535
Redemption of Investment in Securities 0 0
------------ ------------
Net Cash Provided by (Used in)
Investing Activities 11,335 12,535
------------ ------------
Increase (Decrease) in Cash and Cash
Equivalents (55,999) (60,701)
Cash and Cash Equivalents at Beginning of
Year 408,672 406,255
------------ ------------
Cash and Cash Equivalents at End of Year $ 352,673 $ 345,554
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31, 1999 AND 1998
(Unaudited)
TOTAL SERIES 2 - 6 1999 1998
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (1,346,520) $(2,285,675)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 28,650 37,755
Accreted Interest Income on Investments
in Securities (100,153) (106,538)
Equity in Losses of Project
Partnerships 1,060,150 1,989,536
Interest Income from Redemption of
Securities 89,481 74,422
Changes in Operating Assets and
Liabilities:
Increase in Payable to General
Partners 74,647 49,202
------------ ------------
Net Cash Provided by (Used in)
Operating Activities (193,745) (241,298)
------------ ------------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 63,254 66,017
Redemption of Investment in Securities 129,519 135,578
------------ ------------
Net Cash Provided by (Used in)
Investing Activities 192,773 201,595
------------ ------------
Increase (Decrease) in Cash and Cash
Equivalents (972) (39,703)
Cash and Cash Equivalents at Beginning of
Year 1,216,792 1,180,417
------------ ------------
Cash and Cash Equivalents at End of Year $ 1,215,820 $ 1,140,714
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
DECEMBER 31, 1999
NOTE 1 - ORGANIZATION:
Gateway Tax Credit Fund II Ltd. ("Gateway"), a Florida Limited Partnership,
was formed September 12, 1989, under the laws of Florida. Operations
commenced on September 14, 1990 for Series 2, September 28, 1990 for Series
3, February 1, 1991 for Series 4, July 1, 1991 for Series 5 and January 1,
1992 for Series 6. Gateway has invested, as a limited partner, in other
limited partnerships ("Project Partnerships") each of which owns and operates
one or more apartment complexes expected to qualify for Low-Income Housing
Tax Credits. Gateway will terminate on December 31, 2040, or sooner, in
accordance with the terms of the Limited Partnership Agreement. As of
December 31, 1999, Gateway had received capital contributions of $1,000 from
the General Partners and $37,228,000 from Beneficial Assignee Certificate
investors (the "Assignees"). The fiscal year of Gateway for reporting
purposes ends on March 31.
Pursuant to the Securities Act of 1933, Gateway filed a Form S-11
Registration Statement with the Securities and Exchange Commission, effective
September 12, 1989, which covered the offering (the "Public Offering") of
Gateway's Beneficial Assignee Certificates ("BACs") representing assignments
of units for the beneficial interest of the limited partnership interest of
the Assignor Limited Partner. The Assignor Limited Partner was formed for
the purpose of serving in that capacity for the Fund and will not engage in
any other business.
Raymond James Partners, Inc. and Raymond James Tax Credit Funds, Inc.,
wholly-owned subsidiaries of Raymond James Financial, Inc., are the General
Partner and the Managing General Partner, respectively. The Managing General
Partner manages and controls the business of Gateway.
Gateway offered BACs in five series. BACs in the amounts of $6,136,000,
$5,456,000, $6,915,000, $8,616,000 and $10,105,000 for Series 2, 3, 4, 5 and
6, respectively had been issued as of March 31, 1997. Each Series is treated
as a separate partnership, investing in a separate and distinct pool of
Project Partnerships. Net proceeds from each Series are used to acquire
Project Partnerships which are specifically allocated to such Series. Income
or loss and all tax items from the Project Partnerships acquired by each
Series are specifically allocated among the Assignees of such Series.
Operating profits and losses, cash distributions from operations and tax
credits are allocated 99% to the Assignees and 1% to the General Partners.
Profit or loss and cash distributions from sales of properties will be
allocated as formulated in the Limited Partnership Agreement.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounting
Gateway utilizes the accrual basis of accounting whereby revenues are
recognized when earned and expenses are recognized when obligations are
incurred.
Gateway accounts for its investments as the sole limited partner in Project
Partnerships ("Investments in Project Partnerships") using the equity method
of accounting, because management believes that Gateway does not have a
majority control of the major operating and financial policies of the Project
Partnerships in which it invests, and reports the equity in losses of the
Project Partnerships on a 3-month lag in the Statements of Operations. Under
the equity method, the Investments in Project Partnerships initially include:
1)Gateway's capital contribution,
2)Acquisition fees paid to the General Partner for services rendered
in selecting properties for acquisition, and
3)Acquisition expenses including legal fees, travel and other
miscellaneous costs relating to acquiring properties.
Quarterly the Investments in Project Partnerships are increased or decreased
as follows:
1)Increased for equity in income or decreased for equity in losses of
the Project Partnerships,
2)Decreased for cash distributions received from the Project
Partnerships, and
3)Decreased for the amortization of the acquisition fees and expenses.
Amortization is calculated on a straight-line basis over 35 years, as this
is the average estimated useful life of the underlying assets. The
amortization is shown as amortization expense on the Statements of
Operations.
Pursuant to the limited partnership agreements for the Project Partnerships,
cash losses generated by the Project Partnerships are allocated to the
general partners of those partnerships. In subsequent years, cash profits,
if any, are first allocated to the general partners to the extent of the
allocation of prior years' cash losses.
Since Gateway invests as a limited partner, and therefore is not obligated
to fund losses or make additional capital contributions, it does not
recognize losses from individual Project Partnerships to the extent that
these losses would reduce the investment in those Project Partnerships below
zero. The suspended losses will be used to offset future income from the
individual Project Partnerships.
Gateway recognizes a decline in the carrying value of its investment in the
Project Partnerships when there is evidence of a non-temporary decline in the
recoverable amount of the investment. There is a possibility that the
estimates relating to reserves for non-temporary declines in carrying value
of the investments in Project Partnerships may be subject to material near
term adjustments.
Gateway, as a limited partner in the Project Partnerships, is subject to
risks inherent in the ownership of property which are beyond its control,
such as fluctuations in occupancy rates and operating expenses, variations in
rental schedules, proper maintenance and continued eligibility of tax
credits. If the cost of operating a property exceeds the rental income
earned thereon, Gateway may deem it in its best interest to voluntarily
provide funds in order to protect its investment.
Cash and Cash Equivalents
It is Gateway's policy to include short-term investments with an original
maturity of three months or less in Cash and Cash Equivalents. Short-term
investments are comprised of money market mutual funds.
Concentration of Credit Risk
Financial instruments which potentially subject Gateway to concentrations of
credit risk consist of cash investments in a money market mutual fund that is
a wholly-owned subsidiary of Raymond James Financial, Inc.
Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles requires the use of estimates that affect
certain reported amounts and disclosures. These estimates are based on
management's knowledge and experience. Accordingly, actual results could
differ from these estimates.
Investment in Securities
Effective April 1, 1995, Gateway adopted Statement of Financial Accounting
Standards No. 115, Accounting for Certain Investments in Debt and Equity
Securities ("FAS 115"). Under FAS 115, Gateway is required to categorize its
debt securities as held-to-maturity, available-for-sale or trading
securities, dependent upon Gateway's intent in holding the securities.
Gateway's intent is to hold all of its debt securities (U. S. Government
Security Strips) until maturity and to use these reserves to fund Gateway's
ongoing operations. Interest income is recognized ratably on the U. S.
Government Strips using the effective yield to maturity.
Offering and Commission Costs
Offering and commission costs were charged against Assignees' Equity upon
the admission of Limited Partners.
Income Taxes
No provision for income taxes has been made in these financial statements,
as income taxes are a liability of the partners rather than of Gateway.
Reclassifications
For comparability, the 1998 figures have been reclassified, where
appropriate, to conform with the financial statement presentation used in
1999.
Basis of Preparation
The unaudited financial statements presented herein have been prepared in
accordance with the instructions to Form 10-Q and do not include all of the
information and note disclosures required by generally accepted accounting
principles. These statements should be read in conjunction with the
financial statements and notes thereto included with the Partnership's Form
10-K for the year ended March 31, 1999. In the opinion of management these
financial statements include adjustments, consisting only of normal recurring
adjustments, necessary to fairly summarize the Partnership's financial
position and results of operations. The results of operations for the
periods may not be indicative of the results to be expected for the year.
NOTE 3 - INVESTMENT IN SECURITIES:
The December 31, 1999 Balance Sheet includes Investment in Securities
consisting of U.S. Government Security Strips which represents their cost,
plus accreted interest income of $146,574 for Series 2, $130,375 for Series
3, $165,174 for Series 4, $205,866 for Series 5 and $167,204 for Series 6.
For convenience, the Investment in Securities are commonly held in a
brokerage account with Raymond James and Associates, Inc. A separate
accounting is maintained for each series' share of the investments.
Gross Unrealized
Estimated Market Cost Plus Gains and
Value Accreted Interest (Losses)
----------------- ----------------- ----------------
Series 2 $ 331,537 $ 320,209 $ 11,328
Series 3 294,801 284,819 9,982
Series 4 373,629 360,838 12,791
Series 5 465,535 449,737 15,798
Series 6 430,099 421,517 8,582
As of December 31, 1999, the cost and accreted interest of debt securities
by contractual maturities is as follows:
Series 2 Series 3 Series 4
-------- -------- --------
Due with 1 year $ 50,942 $ 45,312 $ 57,406
After 1 year through 5 years 186,284 165,695 209,920
After 5 years through 10 years 82,983 73,812 93,512
---------- ---------- ----------
Total Amount Carried on
Balance Sheet $ 320,209 $ 284,819 $ 360,838
========== ========== ==========
Series 5 Series 6 Total
-------- -------- --------
Due with 1 year $ 71,549 $ 54,861 $ 280,070
After 1 year through 5 years 261,640 214,518 1,038,057
After 5 years through 10 years 116,548 152,138 518,993
---------- ---------- ----------
Total Amount Carried on
Balance Sheet $ 449,737 $ 421,517 $1,837,120
========== ========== ==========
NOTE 4 - RELATED PARTY TRANSACTIONS:
The Payable to General Partners primarily represents the asset management
fees owed to the General Partners at the end of the period. It is unsecured,
due on demand and, in accordance with the limited partnership agreement, non-
interest bearing. Within the next 12 months, the Managing General Partner
does not intend to demand payment on the portion of Asset Management Fees
payable classified as long-term on the Balance Sheet.
The Payable to Project Partnerships represents unpaid capital contributions
to the Project Partnerships and will be paid after certain performance
criteria are met. Such contributions are in turn payable to the general
partner of the Project Partnerships.
For the nine months ended December 31, 1999 and 1998 the General Partners
and affiliates are entitled to compensation and reimbursement for costs and
expenses incurred by Gateway as follows:
Asset Management Fee - The Managing General Partner is entitled to be paid
an annual asset management fee equal to 0.25% of the aggregate cost of
Gateway's interest in the projects owned by the Project Partnerships. The
asset management fee will be paid only after all other expenses of Gateway
have been paid. These fees are included in the Statements of Operations.
1999 1998
---- ------
Series 2 $ 51,486 $ 51,579
Series 3 47,610 47,733
Series 4 58,491 58,599
Series 5 72,345 72,498
Series 6 80,112 80,340
--------- ---------
Total $ 310,044 $ 310,749
========= =========
General and Administrative Expenses - The Managing General Partner is reim
bursed for general and administrative expenses of Gateway on an accountable
basis. This expense is included in the Statements of Operations.
Series 2 $ 6,223 $ 5,835
Series 3 6,506 6,129
Series 4 8,199 7,692
Series 5 10,184 9,548
Series 6 10,749 10,093
--------- --------
Total $ 41,861 $ 39,297
========= ========
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:
As of December 31, 1999, the Partnership had acquired a 99% interest in the
profits, losses and tax credits as a limited partner in 148 Project
Partnerships for the Series which own and operate government assisted multi-
family housing complexes(Series 2 - 22,Series 3 - 23, Series 4 - 29, Series
5 - 36 and Series 6 - 38).
Cash flows from operations are allocated according to each partnership
agreement. Upon dissolution proceeds will be distributed according to each
partnership agreement.
The following is a summary of Investments in Project Partnerships as of:
SERIES 2 DECEMBER 31, MARCH 31,
1999 1999
-------------- ----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships $ 4,524,678 $ 4,524,678
Cumulative equity in losses of Project
Partnerships (1) (4,623,436) (4,437,682)
Cumulative distributions received from (75,417) (69,654)
Project Partnerships ------------ -------------
Investment in Project Partnerships before
Adjustment (174,175) 17,342
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 390,838 390,838
Accumulated amortization of acquisition
fees and expenses (80,237) (76,601)
----------- ------------
Investments in Project Partnerships $ 136,426 $ 331,579
============ ============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $1,632,032 for the period ended December 31, 1999 and cumulative suspended
losses of $1,142,213 for the year ended March 31, 1999 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
The following is a summary of Investments in Project Partnerships as of:
SERIES 3 DECEMBER 31, MARCH 31,
1999 1999
-------------- ----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships $ 3,888,713 $ 3,888,713
Cumulative equity in losses of Project
Partnerships (1) (4,040,292) (3,927,601)
Cumulative distributions received from
Project Partnerships (174,623) (155,866)
----------- -------------
Investment in Project Partnerships before
Adjustment (326,202) (194,754)
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 491,746 491,746
Accumulated amortization of acquisition
fees and expenses (80,452) (78,172)
----------- ------------
Investments in Project Partnerships $ 85,092 $ 218,820
============ ============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $2,057,948 for the period ended December 31, 1999 and cumulative suspended
losses of $1,581,681 for the year ended March 31, 1999 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
The following is a summary of Investments in Project Partnerships as of:
SERIES 4 DECEMBER 31, MARCH 31,
1999 1999
-------------- ----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships $ 4,952,519 $ 4,952,519
Cumulative equity in losses of Project
Partnerships (1) (4,800,914) (4,634,186)
Cumulative distributions received from
Project Partnerships (113,708) (100,990)
----------- -------------
Investment in Project Partnerships before
Adjustment 37,897 217,343
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 562,967 562,967
Accumulated amortization of acquisition
fees and expenses (109,758) (103,962)
----------- ------------
Investments in Project Partnerships $ 491,106 $ 676,348
============ ============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $1,367,510 for the period ended December 31, 1999 and cumulative suspended
losses of $1,002,895 for the year ended March 31, 1999 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
The following is a summary of Investments in Project Partnerships as of:
SERIES 5 DECEMBER 31, MARCH 31,
1999 1999
-------------- ----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships $ 6,164,472 $ 6,164,472
Cumulative equity in losses of Project
Partnerships (1) (5,587,891) (5,407,399)
Cumulative distributions received from
Project Partnerships (161,396) (146,715)
----------- -------------
Investment in Project Partnerships before
Adjustment 415,185 610,358
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 650,837 650,837
Accumulated amortization of acquisition
fees and expenses (120,510) (115,614)
------------ ------------
Investments in Project Partnerships $ 945,512 $ 1,145,581
============ ============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $1,634,032 for the period ended December 31, 1999 and cumulative suspended
losses of $929,309 for the year ended March 31, 1999 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
The following is a summary of Investments in Project Partnerships as of:
SERIES 6 DECEMBER 31, MARCH 31,
1999 1999
-------------- ----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships $ 7,462,215 $ 7,462,215
Cumulative equity in losses of Project
Partnerships (1) (5,910,709) (5,496,224)
Cumulative distributions received from
Project Partnerships (156,991) (145,656)
------------ -------------
Investment in Project Partnerships before
Adjustment 1,394,515 1,820,335
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 785,179 785,179
Accumulated amortization of acquisition
fees and expenses (153,470) (141,428)
------------ ------------
Investments in Project Partnerships $ 2,026,224 $ 2,464,086
============ ============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $963,224 for the period ended December 31, 1999 and cumulative suspended
losses of $598,829 for the year ended March 31, 1999 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
The following is a summary of Investments in Project Partnerships as of:
TOTAL SERIES 2 - 6 DECEMBER 31, MARCH 31,
1999 1999
-------------- ----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships $ 26,992,597 $ 26,992,597
Cumulative equity in losses of Project
Partnerships (1) (24,963,242) (23,903,092)
Cumulative distributions received from
Project Partnerships (682,135) (618,881)
----------- -------------
Investment in Project Partnerships before
Adjustment 1,347,220 2,470,624
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 2,881,567 2,881,567
Accumulated amortization of acquisition
fees and expenses (544,427) (515,777)
----------- ------------
Investments in Project Partnerships $ 3,684,360 $ 4,836,414
============ ============
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
In accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is the
summarized financial information for the Series' Project Partnerships as of
September 30, of each year:
SEPTEMBER 30,
1999 1998
SERIES 2 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,911,654 $ 1,851,356
Investment properties, net 20,092,832 20,976,868
Other assets 12,832 11,140
----------- -----------
Total assets $22,017,318 $22,839,364
=========== ===========
Liabilities and Partners' Equity:
Current liabilities 631,795 501,706
Long-term debt 23,147,629 23,203,641
----------- -----------
Total liabilities 23,779,424 23,705,347
----------- -----------
Partners' equity
Limited Partner (1,781,427) (911,848)
General Partners 19,321 45,865
----------- -----------
Total Partners' equity (1,762,106) (865,983)
----------- -----------
Total liabilities and partners'
equity $22,017,318 $22,839,364
=========== ===========
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 2,046,468 $ 1,865,707
Expenses: ----------- -----------
Operating expenses 1,381,364 1,251,202
Interest expense 659,121 439,776
Depreciation and amortization 688,380 701,694
----------- -----------
Total expenses 2,728,865 2,392,672
----------- -----------
Net loss $ (682,397) $ (526,965)
=========== ===========
Other partners' share of net loss $ (6,824) $ (5,270)
=========== ===========
Partnerships' share of net loss (675,573) (521,695)
Suspended losses 489,819 202,019
----------- -----------
Equity in Losses of Project Partnerships $ (185,754) $ (319,676)
=========== ===========
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
In accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is the
summarized financial information for the Series' Project Partnerships as of
September 30, of each year:
SEPTEMBER 30,
1999 1998
SERIES 3 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 2,227,705 $ 2,194,850
Investment properties, net 17,186,657 18,234,573
Other assets 215,545 218,802
----------- -----------
Total assets $19,629,907 $20,648,225
=========== ===========
Liabilities and Partners' Equity:
Current liabilities 347,333 565,803
Long-term debt 21,680,513 21,748,548
----------- -----------
Total liabilities 22,027,846 22,314,351
----------- -----------
Partners' equity
Limited Partner (2,646,512) (1,948,665)
General Partners 248,573 282,539
----------- -----------
Total Partners' equity (2,397,939) (1,666,126)
----------- -----------
Total liabilities and partners'
equity $19,629,907 $20,648,225
=========== ===========
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 1,842,589 $ 1,791,299
Expenses: ----------- -----------
Operating expenses 1,293,155 1,277,548
Interest expense 467,178 399,383
Depreciation and amortization 679,386 686,655
----------- -----------
Total expenses 2,439,719 2,363,586
----------- -----------
Net loss $ (597,130) $ (572,287)
=========== ===========
Other partners' share of net loss $ (8,172) $ (5,723)
=========== ===========
Partnerships' share of net loss (588,958) (566,564)
Suspended losses 476,267 338,881
----------- -----------
Equity in Losses of Project Partnerships $ (112,691) $ (227,683)
=========== ===========
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
In accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is the
summarized financial information for the Series' Project Partnerships as of
September 30, of each year:
SEPTEMBER 30,
1999 1998
SERIES 4 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 2,541,267 $ 2,326,789
Investment properties, net 23,543,349 24,514,486
Other assets 21,410 49,341
----------- -----------
Total assets $26,106,026 $26,890,616
=========== ===========
Liabilities and Partners' Equity:
Current liabilities 934,099 534,451
Long-term debt 26,295,326 26,551,287
----------- -----------
Total liabilities 27,229,425 27,085,738
----------- -----------
Partners' equity
Limited Partner (1,300,107) (407,604)
General Partners 176,708 212,482
----------- -----------
Total Partners' equity (1,123,399) (195,122)
----------- -----------
Total liabilities and partners'
equity $26,106,026 $26,890,616
=========== ===========
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 2,461,783 $ 2,426,495
Expenses: ----------- -----------
Operating expenses 1,547,163 1,502,100
Interest expense 692,237 505,288
Depreciation and amortization 761,430 795,465
----------- -----------
Total expenses 3,000,830 2,802,853
----------- -----------
Net loss $ (539,047) $ (376,358)
=========== ===========
Other partners' share of net loss $ (7,704) $ (3,764)
=========== ===========
Partnerships' share of net loss (531,343) (372,594)
Suspended losses 364,615 158,902
----------- -----------
Equity in Losses of Project Partnerships $ (166,728) $ (213,692)
=========== ===========
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
In accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is the
summarized financial information for the Series' Project Partnerships as of
September 30, of each year:
SEPTEMBER 30,
1999 1998
SERIES 5 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 3,045,010 $ 2,941,760
Investment properties, net 29,479,878 30,706,370
Other assets 3,958 19,759
----------- -----------
Total assets $32,528,846 $33,667,889
=========== ===========
Liabilities and Partners' Equity:
Current liabilities 1,055,779 823,788
Long-term debt 32,709,285 32,811,485
----------- -----------
Total liabilities 33,765,064 33,635,273
----------- -----------
Partners' equity
Limited Partner (1,109,346) 109,337
General Partners (126,872) (76,721)
----------- -----------
Total Partners' equity (1,236,218) 32,616
----------- -----------
Total liabilities and partners'
equity $32,528,846 $33,667,889
=========== ===========
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 2,709,707 $ 2,699,019
Expenses: ----------- -----------
Operating expenses 1,954,824 1,753,713
Interest expense 664,184 630,629
Depreciation and amortization 984,855 999,648
----------- -----------
Total expenses 3,603,863 3,383,990
----------- -----------
Net loss $ (894,156) $ (684,971)
=========== ===========
Other partners' share of net loss $ (8,941) $ (6,850)
=========== ===========
Partnerships' share of net loss (885,215) (678,121)
Suspended losses 704,723 72,874
----------- -----------
Equity in Losses of Project Partnerships $ (180,492) $ (605,247)
=========== ===========
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
In accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is the
summarized financial information for the Series' Project Partnerships as of
September 30, of each year:
SEPTEMBER 30,
1999 1998
SERIES 6 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 3,277,688 $ 3,294,860
Investment properties, net 33,402,818 34,691,072
Other assets 18,470 38,679
----------- -----------
Total assets $36,698,976 $38,024,611
=========== ===========
Liabilities and Partners' Equity:
Current liabilities 994,123 959,629
Long-term debt 35,460,996 35,655,864
----------- -----------
Total liabilities 36,455,119 36,615,493
----------- -----------
Partners' equity
Limited Partner 463,586 1,585,598
General Partners (219,729) (176,480)
----------- -----------
Total Partners' equity 243,857 1,409,118
----------- -----------
Total liabilities and partners' $36,698,976 $38,024,611
equity =========== ===========
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 3,002,363 $ 2,821,903
Expenses: ----------- -----------
Operating expenses 1,884,951 1,741,846
Interest expense 844,850 687,698
Depreciation and amortization 1,061,186 1,069,336
----------- -----------
Total expenses 3,790,987 3,498,880
----------- -----------
Net loss $ (788,624) $ (676,977)
=========== ===========
Other partners' share of net loss $ (9,744) $ (6,770)
=========== ===========
Partnerships' share of net loss (778,880) (670,207)
Suspended losses 364,395 46,969
----------- -----------
Equity in Losses of Project Partnerships $ (414,485) $ (623,238)
=========== ===========
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
In accordance with the Partnership's policy of presenting the financial
information of the Project Partnerships on a three month lag, below is the
summarized financial information for the Series' Project Partnerships as of
September 30, of each year:
SEPTEMBER 30,
1999 1998
TOTAL SERIES 2- 6 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 13,003,324 $ 12,609,615
Investment properties, net 123,705,534 129,123,369
Other assets 272,215 337,721
----------- -----------
Total assets $136,981,073 $142,070,705
=========== ===========
Liabilities and Partners' Equity:
Current liabilities 3,963,129 3,385,377
Long-term debt 139,293,749 139,970,825
----------- -----------
Total liabilities 143,256,878 143,356,202
----------- -----------
Partners' equity
Limited Partner (6,373,806) (1,573,182)
General Partners 98,001 287,685
----------- -----------
Total Partners' equity (6,275,805) (1,285,497)
----------- -----------
Total liabilities and partners'
equity $136,981,073 $142,070,705
=========== ===========
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $12,062,910 $11,604,423
Expenses: ----------- -----------
Operating expenses 8,061,457 7,526,409
Interest expense 3,327,570 2,662,774
Depreciation and amortization 4,175,237 4,252,798
----------- -----------
Total expenses 15,564,264 14,441,981
----------- -----------
Net loss $(3,501,354) $(2,837,558)
=========== ===========
Other partners' share of net loss $ (41,385) $ (28,376)
=========== ===========
Partnerships' share of net loss (3,459,969) (2,809,182)
Suspended losses 2,399,819 819,645
----------- -----------
Equity in Losses of Project
Partnerships $(1,060,150) $(1,989,537)
=========== ===========
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations, Liquidity and Capital Resources
Operations commenced on September 14, 1990, with the first admission of
Assignees in Series 2. The proceeds from Assignees' capital contributions
available for investment were used to acquire interests in Project
Partnerships.
As disclosed on the statement of operations for each Series, except as
described below, interest income is comparable for the nine and three months
ended December 31, 1999 and December 31, 1998. The General and
Administrative expenses - General Partner and General and Administrative
expenses - Other for the nine and three months ended December 31, 1999 are
comparable for the same period ended December 31, 1998. There were no
unusual variations in the operating results between these two periods.
The capital resources of each Series are used to pay General and
Administrative operating costs including personnel, supplies, data
processing, travel and legal and accounting associated with the
administration and monitoring of Gateway and the Project Partnerships. The
capital resources are also used to pay the Asset Management Fee due the
Managing General Partner, but only to the extent that Gateway's remaining
resources are sufficient to fund Gateway's ongoing needs. (Payment of any
Asset Management Fee unpaid at the time Gateway sells its interests in the
Project Partnerships is subordinated to the return of the investors' original
capital contributions).
The sources of funds to pay the operating costs of each Series are short
term investments and interest earned thereon, the maturity of U.S. Treasury
Security Strips ("Zero Coupon Treasuries") which were purchased with funds
set aside for this purpose, and cash distributed to the Series from the
operations of the Project Partnerships.
From inception, no Series has paid distributions and management does not
anticipate distributions in the future.
Series 2 - Gateway closed this series on September 14, 1990 after receiving
$6,136,000 from 375 Assignees. Equity in Losses of Project Partnerships for
the nine months ended December 31, 1999 decreased from $319,676 for the nine
months ended December 31, 1998 to $185,754, as a result of not including
losses of $489,819 in 1999 as compared to $202,019 in 1998, as these losses
would reduce the investment in certain Project Partnerships below zero. In
general, it is common in the real estate industry to experience losses for
financial and tax reporting purposes because of the non-cash expenses of
depreciation and amortization. As a result, management expects that this
Series, as well as those described below, will report its equity in Project
Partnerships as a loss for tax and financial reporting purposes. Overall,
management believes the Project Partnerships are operating as expected and
are generating tax credits which meet projections.
At December 31, 1999, the Series had $182,963 of short-term investments
(Cash and Cash Equivalents). It also had $320,209 in Zero Coupon Treasuries
with annual maturities providing $51,800 in fiscal year 2001 increasing to
$66,285 in fiscal year 2007. Management believes the sources of funds are
sufficent to meet current and ongoing operating costs for the foreseeable
future, and to pay part of the Asset Management Fee.
As disclosed on the statement of cash flows, the Series had a net loss of
$230,783 for the nine months ended December 31, 1999. However, after
adjusting for Equity in Losses of Project Partnerships of $185,754 and the
changes in operating assets and liabilities, net cash used in operating
activities was $21,610, primarily due to the maturity of the Zero Coupon
Treasuries, a portion of which is payable to the other Series. Cash provided
by investing activities totaled $35,060, consisting of $5,763 in cash
distributions from the Project Partnerships and $29,297 from matured Zero
Coupon Treasuries. There were no unusual events or trends to describe.
Series 3 - Gateway closed this series on December 13, 1990 after receiving
$5,456,000 from 398 Assignees. Equity in Losses of Project Partnerships for
the nine months ended December 31, 1999 decreased from $227,683 for the nine
months ended December 31, 1998 to $112,691 as a result of not including
losses of $476,267 in 1999 as compared to $338,881 in 1998, as these losses
would reduce the investment in certain Project Partnerships below zero.
At December 31, 1998, the Series had $149,682 of short-term investments (Cash
and Cash Equivalents). It also had $284,819 in Zero Coupon Treasuries with
annual maturities providing $46,075 in fiscal year 2001 increasing to $58,940
in fiscal year 2007. Management believes the sources of funds are sufficient
to meet current and ongoing operating costs for the foreseeable future, and
to pay part of the Asset Management Fee.
As disclosed on the statement of cash flows, the Series had a net loss of
$155,647 for the nine months ended December 31, 1999. However, after
adjusting for Equity in Losses of Project Partnerships of $112,691 and the
changes in operating assets and liabilities, net cash used in operating
activities was $33,115, primarily due to the Receivable from Other Series for
the maturity of Zero Coupon Treasuries. Cash provided by investing
activities totaled $44,816, consisting of $18,757 in cash distributions from
the Project Partnerships and $26,059 from matured Zero Coupon Treasuries.
There were no unusual events or trends to describe.
Series 4 - Gateway closed this series on May 31, 1991 after receiving
$6,915,000 from 465 Assignees. Equity in Losses of Project Partnerships for
the nine months ended December 31, 1999 decreased from $213,692 for the nine
months ended December 31, 1998 to $166,728, as a result of not including
losses of $364,615 in 1999 as compared to $158,902 in 1998, as these losses
would reduce the investment in certain Project Partnerships below zero.
At December 31, 1999, the Series had $223,253 of short-term investments
(Cash and Cash Equivalents). It also had $360,838 in Zero Coupon Treasuries
with annual maturities providing $58,372 in fiscal year 2001 increasing to
$74,700 in fiscal year 2007. Management believes the sources of funds are
sufficient to meet current and ongoing operating costs for the foreseeable
future, and to pay part of the Asset Management Fee.
As disclosed on the statement of cash flows, the Series had a net loss of
$220,994 for the nine months ended December 31, 1999. However, after
adjusting for Equity in Losses of Project Partnerships of $166,728 and the
changes in operating assets and liabilities, net cash used in operating
activities was $30,112, primarily due to the Receivable from Other Series for
the maturity of Zero Coupon Treasuries. Cash provided by investing
activities totaled $45,733, consisting of $12,718 in cash distributions from
the Project Partnerships and $33,015 from matured Zero Coupon Treasuries.
There were no unusual events or trends to describe.
Series 5 - Gateway closed this series on October 11, 1991 after receiving
$8,616,000 from 535 Assignees. Equity in Losses of Project Partnerships for
the nine months ended December 31, 1999 decreased from $605,247 for the nine
months ended December 31, 1998 to $180,492 as a result of not including
losses of $704,723 in 1999 as compared to $72,874 in 1998, as these losses
would reduce the investment in certain Project Partnerships below zero.
At December 31, 1999, the Series had $307,249 of short-term investments
(Cash and Cash Equivalents). It also had $449,737 in Zero Coupon Treasuries
with annual maturities providing $72,753 in fiscal year 2001 increasing to
$93,075 in fiscal year 2007. Management believes the sources of funds are
sufficient to meet current and ongoing operating costs for the foreseeable
future, and to pay part of the Asset Management Fee.
As disclosed on the statement of cash flows, the Series had a net loss of
$243,678 for the nine months ended December 31, 1999. However, after
adjusting for Equity in Losses of Project Partnerships of $180,492 and the
changes in operating assets and liabilities, net cash used in operating
activities was $41,574, primarily due to the Receivable from Other Series for
the maturity of Zero Coupon Treasuries. Cash provided by investing
activities totaled $55,829, consisting of $14,681 in cash distributions from
the Project Partnerships and $41,148 from matured Zero Coupon Treasuries.
There were no unusual events or trends to describe.
Series 6 - Gateway closed this series on March 11, 1992 after receiving
$10,105,000 from 625 Assignees. Equity in Losses of Project Partnerships for
the nine months ended December 31, 1999 decreased from $623,238 for the nine
months ended December 31, 1998 to $414,485, as a result of not including
losses of $364,395 in 1999 as compared to $46,969 in 1998, as these losses
would reduce the investment in certain Project Partnerships below zero.
At December 31, 1999, the Series had $352,673 of short-term investments
(Cash and Cash Equivalents). It also had $421,517 in Zero Coupon Treasuries
with annual maturities providing $55,000 in fiscal year 2001 increasing to
$83,000 in fiscal year 2007. Management believes the sources of funds are
sufficient to meet current and ongoing operating costs for the foreseeable
future, and to pay part of the Asset Management Fee.
As disclosed on the statement of cash flows, the Series had a net loss of
$495,418 for the nine months ended December 31, 1999. However, after
adjusting for Equity in Losses of Project Partnerships of $414,485 and the
changes in operating assets and liabilities, net cash used in operating
activities was $67,334, primarily due to the increase in payable to the
General Partners. Cash provided by investing activities totaled $11,335,
consisting of cash distributions from the Project Partnerships. There were
no unusual events or trends to describe.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed by the following persons on behalf of the Registrant
and in the capacities and on the dates indicated.
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
By: Raymond James Tax Credit Funds,Inc.
Date: February 9, 2000 By:/s/ Ronald M. Diner
Ronald M. Diner
President
Date: February 9, 2000 By:/s/ Sandra L. Furey
Sandra L. Furey
Secretary and Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1999.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-END> DEC-31-1999
<CASH> 1,215,820
<SECURITIES> 1,837,120
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,495,890
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 6,737,300
<CURRENT-LIABILITIES> 274,319
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 4,793,712
<TOTAL-LIABILITY-AND-EQUITY> 6,737,300
<SALES> 0
<TOTAL-REVENUES> 145,340
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 431,710
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,346,520)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,346,520)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,346,520)
<EPS-BASIC> (35.81)<F1>
<EPS-DILUTED> (35.81)<F1>
<FN>
<F1>EPS IS NET LOSS PER $1,000 LIMITED PARTNERSHIP UNIT
</FN>
</TABLE>
