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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC
20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: December 10, 1996
(Date of earliest event reported)
INSIGNIA FINANCIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-19066 13-3591193
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification
Number)
One Insignia Financial Plaza
Post Office Box 1089
Greenville, South Carolina 29602
(Address of Principal Executive Office)
Registrant's telephone number, including area code: (864) 239-1000
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Item 7. Financial Statements and Exhibits
(a) Condensed Combined Financial Statements (Unaudited)
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NPI PROPERTY MANAGEMENT CORPORATION
NATIONAL PROPERTY INVESTORS, INC.
AND NPI-CL MANAGEMENT L.P. (NOTE 1)
CONDENSED COMBINED CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Current assets:
Cash and cash equivalents .............................. $ 1,352,123
Accounts receivable .................................... 108,125
Advances to partnerships ............................... 568,977
Prepaid expenses ....................................... 7,445
Other assets ........................................... 1,241,937
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Total current assets .................................. 3,278,607
Restricted cash ......................................... 287,472
Office furniture and equipment and leasehold
improvements ........................................... 379,878
Investments in real estate partnerships ................. 56,132,903
Acquired management agreements .......................... 3,703,036
Other assets ............................................ 6,904
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Total assets .......................................... $63,788,800
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LIABILITIES
Current liabilities:
Notes payable currently due ............................ $30,070,862
Accounts payable and accrued expenses .................. 767,415
Other current liabilities .............................. 50,703
Payable to affiliate ................................... 84,892
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Total current liabilities ............................. 30,973,872
Commitments and contingencies ........................... --
Long-term liabilities--deferred income taxes ........... 101,399
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Total liabilities ..................................... 31,075,271
Minority interest ....................................... 32,578,968
EQUITY
Common stock ............................................ 404
Other shareholders' equity .............................. 134,157
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Total liabilities and equity .......................... $63,788,800
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</TABLE>
The accompanying notes are an integral part of these
condensed combined consolidated financial statements.
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NPI PROPERTY MANAGEMENT CORPORATION
NATIONAL PROPERTY INVESTORS, INC.
AND NPI-CL MANAGEMENT L.P. (NOTE 1)
CONDENSED COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
DECEMBER 31
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1995 1994
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<S> <C> <C>
REVENUES:
Management fee income ............................................ $5,121,807 $4,500,149
Interest income .................................................. 248,151 282,337
Other expense recoveries ......................................... 3,651,255 3,961,631
------------ ------------
Total revenue ................................................... 9,021,213 8,744,117
COSTS AND EXPENSES:
Selling, general and administrative .............................. 2,736,810 2,735,904
Officers' compensation ........................................... 937,000 885,880
Amortization and depreciation .................................... 867,774 780,998
Interest expense ................................................. 4,305,560 390,979
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Total costs and expenses ........................................ 8,847,144 4,793,761
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Operating income before benefit for deferred income taxes,
minority interest and extraordinary item ......................... 174,069 3,950,356
Equity in income of real estate partnerships ...................... 6,330,985 --
INCOME TAXES:
Deferred tax benefit ............................................. -- 47,185
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Income before minority interest and extraordinary item ........... 6,505,054 3,997,541
Minority interest ................................................. 2,393,157 774,957
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Net income ...................................................... $4,111,897 $3,222,584
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</TABLE>
The accompanying notes are an integral part of these
condensed combined consolidated financial statements.
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NPI PROPERTY MANAGEMENT CORPORATION
NATIONAL PROPERTY INVESTORS, INC.
AND NPI-CL MANAGEMENT L.P. (NOTE 1)
CONDENSED COMBINED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
DECEMBER 31
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1995 1994
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ................................................ $ 4,111,897 $ 3,222,584
Adjustments to reconcile net income to net cash
provided by operating activities:
Minority interest in income of subsidiaries ............. 2,393,157 774,957
Depreciation and amortization ........................... 867,774 780,998
Equity in income of real estate partnerships ........... (6,330,985) --
Decrease in deferred income taxes ....................... -- (301,281)
Changes in assets and liabilities:
Accounts receivable .................................... 250,942 53,046
Other assets ........................................... 9,177 (405,908)
Payable to affiliate ................................... (793,774) --
Accounts payable and other current liabilities ........ (154,102) 240,790
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Net cash provided by operating activities .............. 354,086 4,365,186
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from partnership distributions ................... 20,712,434 --
Payment of note receivable ................................ -- 169,505
Decrease in advances to partnerships ...................... 2,100 178,647
Purchase of Limited Partnership interest in Publicly
Traded Real Estate Limited Partnerships ................... (6,602,374) (48,167,706)
Organization costs capitalized ............................ -- (650,354)
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Net cash provided by (used in) investing activities ..... 14,112,160 (48,469,908)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuance of notes payable ............... 19,663,789 39,147,888
Repayment of notes payable ................................ (28,740,815) (6,987,450)
Repayment of notes payable from shareholders .............. -- (2,416,250)
Proceeds from loans to shareholders ....................... 113,333 (113,334)
Proceeds from loans to affiliates ......................... 1,876,602 (2,101,236)
Capital contributions received ............................ 298,070 625,000
Loan commitment fee capitalized ........................... (67,423) (1,418,066)
Capital contributions received by subsidiaries ........... 311,846 23,177,000
Distributions to shareholders ............................. (8,110,176) (4,197,461)
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Net cash (used in) provided by financing activities ..... (14,654,774) 45,716,091
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Net (decrease) increase in cash ............................ (188,528) 1,611,369
Cash and cash equivalents at beginning of period .......... 1,540,651 998,011
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Cash and cash equivalents at end of period ................. $ 1,352,123 $ 2,609,380
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</TABLE>
The accompanying notes are an integral part of these
condensed combined consolidated financial statements.
<PAGE>
NPI PROPERTY MANAGEMENT CORPORATION
NATIONAL PROPERTY INVESTORS, INC.
AND NPI-CL MANAGEMENT L.P.
NOTES TO CONDENSED COMBINED
CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
DECEMBER 31, 1995
1. The accompanying unaudited financial statements present the combined
consolidated financial position and results of operations of NPI Property
Management Corporation, National Property Investors, Inc. and NPI-CL Management
L.P. (collectively "NPI"). These entities have been combined based on the
existence of common control and management's plan to sell these entities in a
single transaction (see Note 3). All significant intercompany transactions and
balances have been eliminated in their respective consolidations.
2. The accompanying unaudited condensed combined consolidated financial
statements have been prepared in accordance with generally accepted accounting
principles for interim financial information. Accordingly, they do not include
all of the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for
a fair presentation have been included. Operating results for the six month
period ended December 31, 1995 are not necessarily indicative of the results
that would be expected for a full fiscal year.
3. On August 17, 1995, NPI entered into certain agreements (the "Purchase
Agreements") to sell substantially all of the assets of NPI to Insignia
Financial Group, Inc. and certain of its affiliates for consideration of
approximately $116,000,000 in cash. The closing of the transaction occurred on
January 19 and 22, 1996.
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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 hereunto duly authorized.
INSIGNIA FINANCIAL GROUP, INC.
By: /s/ John K. Lines
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John K. Lines
General Counsel
Date: December 10, 1996
