UNITED STATES
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 June 30, 1997
Commission File Number 0-21762
Gateway Tax Credit Fund III Ltd.
(Exact name of Registrant as specified in its charter)
Florida 59-3090386
(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:
(813)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 June 30, 1997
Units of Limited Partnership
Interest: $1,000 per unit 33,799
DOCUMENTS INCORPORATED BY REFERENCE
Parts I and II, 1995 Form 10-K, filed with the
Securities and Exchange Commission on July 11, 1997
Parts III and IV - Form S-11 Registration Statement
and all amendments and supplements thereto
File No. 33-44238
<PAGE>
PART I - Financial Information
Item 1. Financial Statements
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
JUNE 30, MARCH 31,
1997 1997
----------- -----------
SERIES 7 (Unaudited) (Unaudited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 277,430 $ 267,980
Investments in Securities 45,553 44,933
Receivable from Project Partnerships 0 0
----------- -----------
Total Current Assets 322,983 312,913
Investments in Securities 429,122 421,843
Investments in Project
Partnerships, Net 4,223,546 4,483,546
----------- -----------
Total Assets $4,975,651 $5,218,302
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 50,818 $ 54,499
Payable to Project Partnerships 0 0
----------- -----------
50,818 54,499
Long-Term Liabilities:
Payable to General Partners 202,440 179,733
Partners' Equity:
Limited Partners (10,395 units for
Series 7, 9,980 for Series 8,
6,254 for Series 9, 5,043 for
Series 10 and 5,127 for Series 11
at March 31, 1997 and 1996) 4,766,447 5,025,507
General Partners (44,054) (41,437)
----------- -----------
Total Partners' Equity 4,722,393 4,984,070
----------- -----------
Total Liabilities and
Partners' Equity $4,975,651 $5,218,302
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
JUNE 30, MARCH 31,
1997 1997
----------- ----------
SERIES 8 (Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 398,604 $ 396,038
Investments in Securities 40,728 40,189
Receivable from Project Partnerships 453 453
----------- -----------
Total Current Assets 439,785 436,680
Investments in Securities 407,383 400,823
Investments in Project
Partnerships, Net 4,341,858 4,614,122
----------- -----------
Total Assets $5,189,026 $5,451,625
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 41,306 $ 42,185
Payable to Project Partnerships 0 0
----------- -----------
41,306 42,185
Long-Term Liabilities:
Payable to General Partners 239,261 217,295
Partners' Equity:
Limited Partners (10,395 units for
Series 7, 9,980 for Series 8,
6,254 for Series 9, 5,043 for
Series 10 and 5,127 for Series 11
at March 31, 1997 and 1996) 4,947,000 5,227,849
General Partners (38,541) (35,704)
----------- -----------
Total Partners' Equity 4,908,459 5,192,145
----------- -----------
Total Liabilities and
Partners' Equity $5,189,026 $5,451,625
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
JUNE 30, MARCH 31,
1997 1997
----------- ----------
SERIES 9 (Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 161,968 $ 161,813
Investments in Securities 27,212 26,879
Receivable from Other Series 2,208 0
----------- -----------
Total Current Assets 191,388 188,692
Investments in Securities 274,523 270,520
Investments in Project
Partnerships, Net 3,747,374 3,848,367
----------- -----------
Total Assets $4,213,285 $4,307,579
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 23,568 $ 24,250
Payable to Other Series 1,003 0
----------- -----------
24,571 24,250
Long-Term Liabilities:
Payable to General Partners 131,287 119,002
Partners' Equity:
Limited Partners (10,395 units for
Series 7, 9,980 for Series 8,
6,254 for Series 9, 5,043 for
Series 10 and 5,127 for Series 11
at March 31, 1997 and 1996) 4,071,690 4,177,521
General Partners (14,263) (13,194)
----------- -----------
Total Partners' Equity 4,057,427 4,164,327
----------- -----------
Total Liabilities and
Partners' Equity $4,213,285 $4,307,579
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
JUNE 30, MARCH 31,
1997 1997
----------- ----------
SERIES 10 (Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 202,950 $ 199,743
Investments in Securities 21,294 20,995
Receivable from Other Series 1,003 0
----------- ----------
Total Current Assets 225,247 220,738
Investments in Securities 218,185 214,600
Investments in Project
Partnerships, Net 3,529,896 3,571,518
----------- -----------
Total Assets $3,973,328 $4,006,856
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 27,325 $ 28,072
Payable to Project Partnerships 7,712 7,712
Payable to Other Series 2,208 0
----------- -----------
37,245 35,784
Long-Term Liabilities:
Payable to General Partners 44,846 37,184
Partners' Equity:
Limited Partners (10,395 units for
Series 7, 9,980 for Series 8,
6,254 for Series 9, 5,043 for
Series 10 and 5,127 for Series 11
at March 31, 1997 and 1996) 3,896,505 3,938,729
General Partners (5,268) (4,841)
----------- -----------
Total Partners' Equity 3,891,237 3,933,888
----------- -----------
Total Liabilities and
Partners' Equity $3,973,328 $4,006,856
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
JUNE 30, MARCH 31,
1997 1997
----------- ----------
SERIES 11 (Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 172,448 $ 169,385
Investments in Securities 20,239 19,915
Receivable from Project Partnerships 0 0
----------- -----------
Total Current Assets 192,687 189,300
Investments in Securities 231,580 227,438
Investments in Project
Partnerships, Net 4,018,455 4,070,301
----------- -----------
Total Assets $4,442,722 $4,487,039
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 26,963 $ 27,882
Payable to Project Partnerships 0 0
----------- -----------
26,963 27,882
Long-Term Liabilities:
Payable to General Partners 14,289 8,161
Partners' Equity:
Limited Partners (10,395 units for
Series 7, 9,980 for Series 8,
6,254 for Series 9, 5,043 for
Series 10 and 5,127 for Series 11
at March 31, 1997 and 1996) 4,403,446 4,452,477
General Partners (1,976) (1,481)
----------- -----------
Total Partners' Equity 4,401,470 4,450,996
----------- -----------
Total Liabilities and
Partners' Equity $4,442,722 $4,487,039
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
JUNE 30, MARCH 31,
1997 1997
----------- ----------
TOTAL SERIES 7 - 11 (Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 1,213,400 $ 1,194,959
Investments in Securities 155,026 152,911
Receivable from Project Partnerships 453 453
Receivable from Other Series 3,211 0
------------ ------------
Total Current Assets 1,372,090 1,348,323
Investments in Securities 1,560,793 1,535,224
Investments in Project
Partnerships, Net 19,861,129 20,587,854
------------ ------------
Total Assets $22,794,012 $23,471,401
============ ============
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 169,980 $ 176,888
Payable to Project Partnerships 7,712 7,712
Payable to Other Series 3,211 0
------------ ------------
180,903 184,600
Long-Term Liabilities:
Payable to General Partners 632,123 561,375
Partners' Equity:
Limited Partners (10,395 units for
Series 7, 9,980 for Series 8,
6,254 for Series 9, 5,043 for
Series 10 and 5,127 for Series 11
at March 31, 1997 and 1996) 22,085,087 22,822,083
General Partners (104,101) (96,657)
------------ ------------
Total Partners' Equity 21,980,986 22,725,426
------------ ------------
Total Liabilities and
Partners' Equity $22,794,012 $23,471,401
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30,
1997 1996
SERIES 7 --------- -----------
Revenue:
Interest Income $ 11,163 $ 10,881
------------ -----------
Expenses:
Asset Management Fee-
General Partner 19,500 19,500
General and Administrative-
General Partner 3,318 2,950
General and Administrative-
Other 2,373 3,702
Amortization 5,136 5,460
------------ -----------
Total Expenses 30,327 31,612
------------ -----------
Loss Before Equity in Losses of
Project Partnerships (19,164) (20,731)
Equity in Losses of Project
Partnerships (242,513) (230,910)
------------ ------------
Net Loss $ (261,677) $ (251,641)
============ ============
Allocation of Net Loss:
Limited Partners $ (259,060) $ (249,125)
General Partners (2,617) (2,516)
------------ ------------
$ (261,677) $ (251,641)
============ ============
Net Loss Per Number of
Limited Partnership Units $ (24.92) $ (23.97)
Number of Limited Partnership
Units Outstanding 10,395 10,395
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30,
1997 1996
SERIES 8 ---------- -----------
Revenues:
Interest Income $ 11,924 $ 11,328
------------ -----------
Expenses:
Asset Management Fee-
General Partner 21,500 21,500
General and Administrative-
General Partner 3,659 3,253
General and Administrative-
Other 2,594 3,927
Amortization 2,314 2,315
------------ -----------
Total Expenses 30,067 30,995
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (18,143) (19,667)
Equity in Losses of Project
Partnerships (265,543) (206,775)
------------ ------------
Net Loss $ (283,686) $ (226,442)
============ ============
Allocation of Net Loss:
Limited Partners $ (280,849) $ (224,178)
General Partners (2,837) (2,264)
------------ ------------
$ (283,686) $ (226,442)
============ ============
Net Loss Per Number of
Limited Partnership Units $ (28.14) $ (22.46)
Number of Limited Partnership
Units Outstanding 9,980 9,980
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30,
1997 1996
SERIES 9 -------- -----------
Revenues:
Interest Income $ 6,306 $ 5,669
------------ -----------
Expenses:
Asset Management Fee-
General Partner 12,000 12,000
General and Administrative-
General Partner 2,042 1,816
General and Administrative-
Other 1,387 2,128
Amortization 1,779 1,779
------------ -----------
Total Expenses 17,208 17,723
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (10,902) (12,054)
Equity in Losses of Project
Partnerships (95,998) (114,657)
------------ ------------
Net Loss $ (106,900) $ (126,711)
============ ============
Allocation of Net Loss:
Limited Partners $ (105,831) $ (125,444)
General Partners (1,069) (1,267)
------------ ------------
$ (106,900) $ (126,711)
============ ============
Net Loss Per Number of
Limited Partnership Units $ (16.92) $ (20.06)
Number of Limited Partnership
Units Outstanding 6,254 6,254
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30,
1997 1996
SERIES 10 ---------- ----------
Revenues:
Interest Income $ 6,327 $ 7,008
------------ -----------
Expenses:
Asset Management Fee-
General Partner 7,500 7,500
General and Administrative-
General Partner 1,276 1,134
General and Administrative-
Other 963 1,455
Amortization 1,460 1,460
------------ -----------
Total Expenses 11,199 11,549
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (4,872) (4,541)
Equity in Losses of Project
Partnerships (37,779) (48,842)
------------ ------------
Net Loss $ (42,651) $ (53,383)
============ ============
Allocation of Net Loss:
Limited Partners $ (42,224) $ (52,849)
General Partners (427) (534)
------------ ------------
$ (42,651) $ (53,383)
============ ============
Net Loss Per Number of
Limited Partnership Units $ (8.37) $ (10.48)
Number of Limited Partnership
Units Outstanding 5,043 5,043
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30,
1997 1996
SERIES 11 ---------- -----------
Revenues:
Interest Income $ 6,530 $ 8,604
------------ -----------
Expenses:
Asset Management Fee-
General Partner 6,000 6,000
General and Administrative-
General Partner 1,021 905
General and Administrative-
Other 871 1,268
Amortization 1,797 1,862
------------ -----------
Total Expenses 9,689 10,035
------------ ------------
Income (Loss) Before Equity in Losses of
Project Partnerships (3,159) (1,431)
Equity in Losses of Project
Partnerships (46,367) 20,160
------------ ------------
Net Income (Loss) $ (49,526) $ 18,729
============ ============
Allocation of Net Income (Loss):
Limited Partners $ (49,031) $ 18,542
General Partners (495) 187
------------ ------------
$ (49,526) $ 18,729
============ ============
Net Income (Loss) Per Number of
Limited Partnership Units $ (9.56) $ 3.62
Number of Limited Partnership
Units Outstanding 5,127 5,127
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30,
1997 1996
TOTAL SERIES 7-11 ---------- -----------
Revenues:
Interest Income $ 42,250 $ 43,490
------------ -----------
Expenses:
Asset Management Fee-
General Partner 66,500 66,500
General and Administrative-
General Partner 11,316 10,058
General and Administrative-
Other 8,188 12,480
Amortization 12,486 12,876
------------ -----------
Total Expenses 98,490 101,914
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (56,240) (58,424)
Equity in Losses of Project
Partnerships (688,200) (581,024)
------------ ------------
Net Loss $ (744,440) $ (639,448)
============ ============
Allocation of Net Loss:
Limited Partners $ (736,996) $ (633,054)
General Partners (7,444) (6,394)
------------ ------------
$ (744,440) $ (639,448)
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996:
Limited General
Partners Partners Total
SERIES 7 ----------- ----------- -----------
(Inception July 16, 1992)
Balance at
March 31, 1996 6,042,156 (31,168) 6,010,988
Net Loss (249,125) (2,516) (251,641)
------------ ---------- ------------
Balance at
June 30, 1996 $ 5,793,031 $ (33,684) $ 5,759,347
============ ========== ============
Balance at
March 31, 1997 5,025,507 (41,437) 4,984,070
Net Loss (259,060) (2,617) (261,677)
------------ ---------- ------------
Balance at
June 30, 1997 $ 4,766,447 $ (44,054) $ 4,722,393
============ ========== ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996:
Limited General
Partners Partners Total
SERIES 8 ----------- ----------- -----------
(Inception January 4, 1993)
Balance at
March 31, 1996 6,306,146 (24,812) 6,281,334
Net Loss (224,178) (2,264) (226,442)
------------ ---------- ------------
Balance at
June 30, 1996 $ 6,081,968 $ (27,076) $ 6,054,892
============ ========== ============
Balance at
March 31, 1997 5,277,849 (35,704) 5,192,145
Net Loss (280,849) (2,837) (283,686)
------------ ---------- ------------
Balance at
June 30, 1997 $ 4,947,000 $ (38,541) $ 4,908,459
============ ========== ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996:
Limited General
Partners Partners Total
SERIES 9 ----------- ----------- -----------
(Inception September 30, 1993)
Balance at
March 31, 1996 4,729,151 (7,622) 4,721,529
Net Loss (125,444) (1,267) (126,711)
------------ ---------- ------------
Balance at
June 30, 1996 $ 4,603,707 $ (8,889) $ 4,594,818
============ ========== ============
Balance at
March 31, 1997 4,177,521 (13,194) 4,164,327
Net Loss (105,831) (1,069) (106,900)
------------ ---------- ------------
Balance at
June 30, 1997 $ 4,071,690 $ (14,263) $ 4,057,427
============ ========== ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996:
Limited General
Partners Partners Total
SERIES 10 ----------- ----------- -----------
(Inception January 21, 1994)
Balance at
March 31, 1996 4,151,503 (2,692) 4,148,811
Net Loss (52,849) (534) (53,383)
------------ ---------- ------------
Balance at
June 30, 1996 $ 4,098,654 $ (3,226) $ 4,095,428
============ ========== ============
Balance at
March 31, 1997 3,938,729 (4,841) 3,933,888
Net Loss (42,224) (427) (42,651)
------------ ---------- ------------
Balance at
June 30, 1997 $ 3,896,505 $ (5,268) $ 3,891,237
============ ========== ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996:
Limited General
Partners Partners Total
SERIES 11 ----------- ----------- -----------
(Inception April 29, 1994)
Balance at
March 31, 1996 4,646,546 479 4,647,025
Net Loss 18,542 187 18,729
------------ ---------- ------------
Balance at
June 30, 1996 $ 4,665,088 $ 666 $ 4,665,754
============ ========== ============
Balance at
March 31, 1997 4,452,477 (1,481) 4,450,996
Net Loss (49,031) (495) (49,526)
------------ ---------- ------------
Balance at
June 30, 1997 $ 4,403,446 $ (1,976) $ 4,401,470
============ ========== ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996:
Limited General
Partners Partners Total
TOTAL SERIES 7-11 ----------- ----------- -----------
Balance at
March 31, 1996 25,875,502 (65,815) 25,809,687
Net Loss (633,054) (6,394) (639,448)
------------ ---------- ------------
Balance at
June 30, 1996 $25,242,448 $ (72,209) $25,170,239
============ ========== ============
Balance at
March 31, 1997 22,822,083 (96,657) 22,725,426
Net Loss (736,996) (7,444) (744,440)
------------ ---------- ------------
Balance at
June 30, 1997 $22,085,087 $(104,101) $21,980,986
============ ========== ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996:
1997 1996
SERIES 7 --------- ---------
Cash Flows from Operating Activities:
Net Loss $ (261,677) $ (251,641)
Adjustments to Reconcile
Net Loss to Net Cash
Provided by (Used in)
Operating Activities:
Amortization 5,136 5,460
Accreted Interest Income
on Investments in
Securities (7,898) (7,914)
Equity in Losses of
Project Partnerships 242,513 230,910
Changes in Operating Assets
and Liabilities:
Increase in Payable to
General Partners 19,025 13,863
------------ ---------
Net Cash Provided by
(Used in) Operating
Activities (2,901) (9,322)
------------ ---------
Cash Flows from Investing Activities:
Investments in Project
Partnerships 0 (3,332)
(Increase) Decrease in
Receivable from
Project Partnerships 0 0
Acquisition Fees and
Expenses 0 (272)
Distributions Received from
Project Partnerships 12,351 7,286
(Increase) Decrease in Payable to:
Project Partnerships - 0 0
------------ ---------
Net Cash Provided by
(Used in) Investing
Activities 12,351 3,682
------------ ---------
Increase (Decrease) in Cash and
Cash Equivalents 9,450 (5,640)
Cash and Cash Equivalents at
Beginning of Year 267,980 259,782
------------ ---------
Cash and Cash Equivalents at
End of Year $ 277,430 $ 254,142
============ =========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996:
1997 1996
SERIES 8 --------- ---------
Cash Flows from Operating Activities:
Net Loss $ (283,686) $ (226,442)
Adjustments to Reconcile
Net Loss to Net Cash
Provided by (Used in)
Operating Activities:
Amortization 2,314 2,315
Accreted Interest Income
on Investments in
Securities (7,100) (7,121)
Equity in Losses of
Project Partnerships 265,543 206,775
Changes in Operating Assets
and Liabilities:
Increase in Payable to
General Partners 21,088 15,447
------------ ------------
Net Cash Provided by
(Used in) Operating
Activities (1,841) (9,026)
------------ ------------
Cash Flows from Investing Activities:
Investments in Project
Partnerships 0 (54,070)
(Increase) Decrease in
Receivable from
Project Partnerships 0 76,027
Acquisition Fees and
Expenses 0 0
Distributions Received from
Project Partnerships 4,407 12,437
(Increase) Decrease in Payable to:
Project Partnerships 0 0
------------ ------------
Net Cash Provided by
(Used in) Investing
Activities 4,407 34,394
------------ ------------
Increase (Decrease) in Cash and
Cash Equivalents 2,566 25,368
Cash and Cash Equivalents at
Beginning of Year 396,038 295,021
------------ ------------
Cash and Cash Equivalents at
End of Year $ 398,604 $ 320,389
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996:
1997 1996
SERIES 9 --------- ---------
Cash Flows from Operating Activities:
Net Loss $ (106,900) $ (126,711)
Adjustments to Reconcile
Net Loss to Net Cash
Provided by (Used in)
Operating Activities:
Amortization 1,779 1,779
Accreted Interest Income
on Investments in
Securities (4,336) (4,389)
Equity in Losses of
Project Partnerships 95,998 114,657
Changes in Operating Assets
and Liabilities:
Increase in Payable to
General Partners 11,603 8,461
------------ ------------
Net Cash Provided by
(Used in) Operating
Activities (1,856) (6,203)
------------ ------------
Cash Flows from Investing Activities:
Investments in Project
Partnerships 0 0
(Increase) Decrease in
Receivable from
Project Partnerships (2,208) 0
Acquisition Fees and
Expense 0 0
Distributions Received from
Project Partnerships 3,216 6,161
(Increase) Decrease in Payable to:
Project Partnerships 1,003 0
------------ ------------
Net Cash Provided by
(Used in) Investing
Activities 2,011 6,161
------------ ------------
Increase (Decrease) in Cash and
Cash Equivalents 155 (42)
Cash and Cash Equivalents at
Beginning of Year 161,813 112,252
------------ ------------
Cash and Cash Equivalents at
End of Year $ 161,968 $ 112,210
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996:
1997 1996
SERIES 10 --------- ---------
Cash Flows from Operating Activities:
Net Loss $ (42,651) $ (53,383)
Adjustments to Reconcile
Net Loss to Net Cash
Provided by (Used in)
Operating Activities:
Amortization 1,460 1,460
Accreted Interest Income
on Investments in
Securities (3,885) (3,894)
Equity in Losses of
Project Partnerships 37,779 48,842
Changes in Operating Assets
and Liabilities:
Increase in Payable to
General Partners 6,916 4,963
------------ ------------
Net Cash Provided by
(Used in) Operating
Activities (381) (2,012)
------------ ------------
Cash Flows from Investing Activities:
Investments in Project
Partnerships 0 0
(Increase) Decrease in
Receivable from
Project Partnerships (1,003) 13,059
Acquisition Fees and
Expenses 0 0
Distributions Received from
Project Partnerships 2,383 2,383
(Increase) Decrease in Payable to:
Project Partnerships 2,208 0
------------ ------------
Net Cash Provided by
(Used in) Investing
Activities 3,588 15,442
------------ ------------
Increase (Decrease) in Cash and
Cash Equivalents 3,207 13,430
Cash and Cash Equivalents at
Beginning of Year 199,743 162,576
------------ ------------
Cash and Cash Equivalents at
End of Year $ 202,950 $ 176,006
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996:
1997 1996
SERIES 11 --------- ---------
Cash Flows from Operating Activities:
Net Loss $ (49,526) $ 18,729
Adjustments to Reconcile
Net Loss to Net Cash
Provided by (Used in)
Operating Activities:
Amortization 1,797 1,862
Accreted Interest Income
on Investments in
Securities (4,466) (4,452)
Equity in Losses of
Project Partnerships 46,367 (20,160)
Changes in Operating Assets
and Liabilities:
Increase in Payable to
General Partners 5,209 (251)
------------ ------------
Net Cash Provided by
(Used in) Operating
Activities (619) (4,272)
------------ ------------
Cash Flows from Investing Activities:
Investments in Project
Partnerships 0 (2,173)
(Increase) Decrease in
Receivable from
Project Partnerships 0 8,250
Acquisition Fees and
Expenses 0 (178)
Distributions Received from
Project Partnerships 3,682 0
(Increase) Decrease in Payable to:
Project Partnerships 0 (150,000)
------------ ------------
Net Cash Provided by
(Used in) Investing
Activities 3,682 (144,101)
------------ ------------
Increase (Decrease) in Cash and
Cash Equivalents 3,063 (148,373)
Cash and Cash Equivalents at
Beginning of Year 169,385 365,027
------------ ------------
Cash and Cash Equivalents at
End of Year $ 172,448 $ 216,654
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996:
1997 1996
TOTAL SERIES 7-11 --------- ---------
Cash Flows from Operating Activities:
Net Loss $ (744,440) $ (639,448)
Adjustments to Reconcile
Net Loss to Net Cash
Provided by (Used in)
Operating Activities:
Amortization 12,486 12,876
Accreted Interest Income
on Investments in
Securities (27,685) (27,770)
Equity in Losses of
Project Partnerships 688,200 581,024
Changes in Operating Assets
and Liabilities:
Increase in Payable to
General Partners 63,841 42,483
------------ ------------
Net Cash Provided by
(Used in) Operating
Activities (7,598) (30,835)
------------ ------------
Cash Flows from Investing Activities:
Investments in Project
Partnerships 0 (59,575)
(Increase) Decrease in
Receivable from
Project Partnerships (3,211) 97,336
Acquisition Fees and
Expenses 0 (450)
Distributions Received from
Project Partnerships 26,039 28,267
(Increase) Decrease in Payable to:
Project Partnerships 3,211 (150,000)
------------ ------------
Net Cash Provided by
(Used in) Investing
Activities 26,039 (84,422)
------------ ------------
Increase (Decrease) in Cash and
Cash Equivalents 18,441 (115,257)
Cash and Cash Equivalents at
Beginning of Year 1,194,959 1,194,658
------------ ------------
Cash and Cash Equivalents at
End of Year $ 1,213,400 $ 1,079,401
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
NOTE 1 - ORGANIZATION:
Gateway Tax Credit Fund III Ltd. ("Gateway"), a Florida
Limited Partnership, was formed October 17, 1991 under the
laws of Florida. Gateway offered its limited partnership
interests in Series. The first Series for Gateway is Series
7. Operations commenced on July 16, 1992 for Series 7,
January 4, 1993 for Series 8, September 30, 1993 for Series
9, January 21, 1994 for Series 10 and April 29, 1994 for
Series 11. Each Series invests, as a limited partner, in
other limited partnerships ("Project Partnerships"), each of
which owns and operates apartment complexes eligible for Low-
Income Housing Tax Credits ("Tax Credits"), provided for in
Section 42 of the Internal Revenue Code of 1986. Gateway will
terminate on December 31, 2040 or sooner, in accordance with
the terms of the Limited Partnership Agreement. As of March
31, 1997, Gateway had received capital contributions of $1,000
from the General Partners and $36,799,000 from the investor
Limited Partners.
Raymond James Partners, Inc. and Raymond James Tax Credit
Funds, Inc., wholly-owned subsidiaries of Raymond James
Financial, Inc., are the General Partner and Managing General
Partner, respectively. The Managing General Partner manages
and controls the business of Gateway.
Gateway received capital contributions of $10,395,000,
$9,980,000, $6,254,000, $5,043,000 and $5,127,000 from the
investor Limited Partners in Series 7, 8, 9, 10 and 11,
respectively. Each Series will be treated as though it were
a separate partnership, investing in a separate and distinct
pool of Project Partnerships. Income or loss and all tax
items from the Project Partnerships acquired by each Series
will be specifically allocated among the limited partners of
such Series.
Operating profits and losses, cash distributions from
operations and Tax Credits from each Series are generally
allocated 99% to the Limited Partners in that Series and 1%
to the General Partners. Profit or loss and cash
distributions from sales of property by each Series are
allocated as formulated in the Limited Partnership Agreement.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounting
Gateway utilizes an accrual basis of accounting whereby
revenues are recognized as earned and expenses are recognized
as obligations are incurred.
Gateway accounts for its investments as the limited partner
in Project Partnerships ("Investments in Project
Partnerships") using the equity method of accounting and
reports the equity in losses of the Project Partnerships on a
3-month lag in the Statement 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,
3) Decreased for the amortization of the acquisition fees
and expenses,
4) In certain Project Partnerships, where Gateway's
investment was greater than Gateway's pro-rata share of the
book value of the underlying assets, decreased for the
amortization of the difference; and
5) In certain Project Partnerships, where Gateway's
investment was less than Gateway's pro-rata share of the
book value of the underlying assets, increased for the
accretion of the difference.
Amortization and accretion is calculated on a straight line
basis over 35 years, as this is the average estimated useful
life of the underlying assets. The net amortization and
accretion 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.
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.
Concentrations 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, 1994, 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.
Treasury Security Strips) until maturity and to use these
reserves to fund Gateway's ongoing operations. Interest
income is recognized ratably on the U.S. Treasury Strips using
the effective yield to maturity.
Receivable from Project Partnerships
Receivable from Project Partnerships represents amounts
due from the Project Partnerships due to a change in the
amount Gateway agreed to pay the Project Partnerships and is
secured with cash in restricted escrow accounts.
Offering and Commission Costs
Offering and commission costs are charged against Limited
Partners' Equity upon 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.
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, 1997. 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 June 30, 1997 Balance Sheet includes Investment in
Securities consisting of U.S. Treasury Security Strips which
represents their cost, plus accreted interest income of
$129,800 for Series 7, $107,223 for Series 8, $56,642 for
Series 9, $46,720 for Series 10 and $50,049 for Series 11.
Gross
Cost Plus Unrealized
Estimated Accreted Gains and
Market Value Interest (Losses)
Series 7 $ 488,492 $ 474,675 $ 13,817
Series 8 451,985 448,111 3,874
Series 9 293,015 301,735 (8,720)
Series 10 242,685 239,479 3,206
Series 11 264,308 251,819 12,489
As of June 30, 1997, the cost and accreted interest of debt
securities by contractual maturities is as follows:
Series 7 Series 8
Due within 1 year $ 45,553 $ 40,728
After 1 year through 5 years 180,458 167,039
After 5 years through 10 years 209,610 201,483
After 10 years 39,054 38,861
--------- ---------
Total Amount Carried on
Balance Sheet $ 474,675 $ 448,111
========= =========
Series 9 Series 10
Due within 1 year $ 27,212 $ 21,294
After 1 year through 5 years 106,243 81,783
After 5 years through 10 years 122,822 87,881
After 10 years 45,458 48,521
--------- ---------
Total Amount Carried on
Balance Sheet $ 301,735 $ 239,479
========= =========
Series 11 Total
Due within 1 year $ 20,239 $ 155,036
After 1 year through 5 years 81,574 617,097
After 5 years through 10 years 97,477 719,273
After 10 years 52,529 224,423
--------- ---------
Total Amount Carried on
Balance Sheet $ 251,819 $1,715,829
========= =========
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 partners of
the Project Partnerships.
For the three months ended June 30, 1997 and 1996 the
General Partners and affiliates are entitled to compensation
and reimbursement for costs and expenses incurred by Gateway
as follows:
Acquisition Expenses - Affiliates of the General Partners
are reimbursed for acquisition expenses incurred on behalf of
Gateway. These expenses are included in Investments in
Project Partnerships on the Balance Sheet.
Series 7 $ 0 $ 272
Series 8 0 0
Series 9 0 0
Series 10 0 0
Series 11 0 176
-------- --------
Total $ 0 $ 450
======== ========
Asset Management Fee - The Managing General Partner is
entitled to receive an annual asset management fee equal to
the greater of (i) $2,000 for each limited partnership in
which Gateway invests, or (ii) 0.275% of Gateway's gross
proceeds from the sale of limited partnership interests. In
either event (i) or (ii), the maximum amount may not exceed
0.2% of the aggregate cost (Gateway's capital contribution
plus Gateway's share of the Properties' mortgage) of Gateway's
interest in properties 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 Statement of Operations.
Series 7 $ 19,500 $ 19,500
Series 8 21,500 21,500
Series 9 12,000 12,000
Series 10 7,500 7,500
Series 11 6,000 6,000
-------- --------
Total $ 66,500 $ 66,500
======== ========
General and Administrative Expenses - The Managing General
Partner is reimbursed for general and administrative expenses
of Gateway on an accountable basis. This expense is included
in the Statement of Operations.
Series 7 $ 3,318 $ 2,950
Series 8 3,659 3,253
Series 9 2,042 1,816
Series 10 1,276 1,134
Series 11 1,021 905
-------- --------
Total $ 11,316 $ 10,058
======== ========
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:
As of June 30, 1997, the Partnership had acquired an interest in
39 Project Partnerships for the Series which own and operate
government assisted multi-family housing complexes. The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.
The following is a summary of Investments in Project Partnerships
as of:
JUNE 30, MARCH 31,
1997 1997
SERIES 7 ---------- ----------
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships) $ 7,732,089 $ 7,732,089
Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1) 1,700 1,172
Cumulative equity in losses of
Project Partnerships (2) (4,115,448) (3,872,935)
Cumulative distributions received
from Project Partnerships (79,558) (67,207)
Acquisition fees and expenses 793,335 793,335
Accumulated amortization of
acquisition fees and expenses (108,572) (102,908)
------------ ------------
Investments in
Project Partnerships $ 4,223,546 $ 4,483,546
============ ============
(1) Includes amounts representing accumulated accretion or
(amortization) of the difference between the book value of the
underlying assets of the Project Partnerships over or under
the purchase price. At June 30, 1997 and March 31, 1997 these
excess costs were $18,470.
(2) In accordance with the Partnership's accounting policy to
not carry Investments in Project Partnerships below zero,
cumulative suspended losses of $51,309 for the period ended
June 30, 1997 and cumulative suspended losses of $40,687 for
the year ended March 31, 1997 are not included.
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of June 30, 1997, the Partnership had acquired an interest in
43 Project Partnerships for the Series which own and operate
government assisted multi-family housing complexes. The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.
The following is a summary of Investments in Project Partnerships
as of:
JUNE 30, MARCH 31,
1997 1997
SERIES 8 ---------- ----------
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships) $ 7,586,105 $ 7,586,105
Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1) 2,495 2,317
Cumulative equity in losses of
Project Partnerships (2) (3,674,177) (3,408,634)
Cumulative distributions received
from Project Partnerships (61,393) (56,986)
Acquisition fees and expenses 549,773 549,773
Accumulated amortization of
acquisition fees and expenses (60,945) (58,453)
------------ ------------
Investments in
Project Partnerships $ 4,341,858 $ 4,614,122
============ ============
(1) Includes amounts representing accumulated accretion or
(amortization) of the difference between the book value of the
underlying assets of the Project Partnerships over or under
the purchase price. At June 30, 1997 and March 31, 1997 these
excess costs were $24,830.
(2) In accordance with the Partnership's accounting policy to
not carry Investments in Project Partnerships below zero,
cumulative suspended losses of $27,832 for the period ended
June 30, 1997 and cumulative suspended losses of $24,072 for
the year ended March 31, 1997 are not included.
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of June 30, 1997, the Partnership had acquired an interest in
24 Project Partnerships for the Series which own and operate
government assisted multi-family housing complexes. The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.
The following is a summary of Investments in Project Partnerships
as of:
JUNE 30, MARCH 31,
1997 1997
SERIES 9 ---------- ----------
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships) $ 4,914,116 $ 4,914,116
Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1) 691 727
Cumulative equity in losses of
Project Partnerships (1,348,228) (1,252,230)
Cumulative distributions received
from Project Partnerships (38,559) (35,343)
Acquisition fees and expenses 244,087 244,087
Accumulated amortization of
acquisition fees and expenses (24,733) (22,990)
------------ ------------
Investments in
Project Partnerships $ 3,747,374 $ 3,848,367
============ ============
(1) Includes amounts representing accumulated accretion or
(amortization) of the difference between the book value of the
underlying assets of the Project Partnerships over or under
the purchase price. At June 30, 1997 and March 31, 1997 these
excess costs were ($5,076).
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of June 30, 1997, the Partnership had acquired an interest in
15 Project Partnerships for the Series which own and operate
government assisted multi-family housing complexes. The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.
The following is a summary of Investments in Project Partnerships
as of:
JUNE 30, MARCH 31,
1997 1997
SERIES 10 ---------- ----------
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships) $ 3,914,672 $ 3,914,672
Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1) (551) (497)
Cumulative equity in losses of
Project Partnerships (517,898) (480,119)
Cumulative distributions received
from Project Partnerships (43,889) (41,506)
Acquisition fees and expenses 196,738 196,738
Accumulated amortization of
acquisition fees and expenses (19,176) (17,770)
------------ ------------
Investments in
Project Partnerships $ 3,529,896 $ 3,571,518
============ ============
(1) Includes amounts representing accumulated accretion or
(amortization) of the difference between the book value of the
underlying assets of the Project Partnerships over or under
the purchase price. At June 30, 1997 and March 31, 1997 these
excess costs were ($7,486).
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of June 30, 1997, the Partnership had acquired an interest in
12 Project Partnerships for the Series which own and operate
government assisted multi-family housing complexes. The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.
The following is a summary of Investments in Project Partnerships
as of:
JUNE 30, MARCH 31,
1997 1997
SERIES 11 ---------- ----------
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships) $ 4,128,042 $ 4,128,042
Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1) 2,141 1,864
Cumulative equity in losses of
Project Partnerships (373,046) (326,679)
Cumulative distributions received
from Project Partnerships (8,777) (5,095)
Acquisition fees and expenses 290,335 290,335
Accumulated amortization of
acquisition fees and expenses (20,240) (18,166)
------------ ------------
Investments in
Project Partnerships $ 4,018,455 $ 4,070,301
============ ============
(1) Includes amounts representing accumulated accretion or
(amortization) of the difference between the book value of the
underlying assets of the Project Partnerships over or under
the purchase price. At June 30, 1997 and March 31, 1997 these
excess costs were $38,728.
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
The following is a summary of Investments in Project
Partnerships:
JUNE 30, MARCH 31,
1997 1997
TOTAL SERIES 7 - 11 ---------- ----------
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships) $ 28,275,024 $ 28,275,024
Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets 6,476 5,583
Cumulative equity in losses of
Project Partnerships (10,028,797) (9,340,597)
Cumulative distributions received
from Project Partnerships (232,176) (206,137)
Acquisition fees and expenses 2,074,268 2,074,268
Accumulated amortization of
acquisition fees and expenses (233,666) (220,287)
------------- -------------
Investments in
Project Partnerships $ 19,861,129 $ 20,587,854
============= =============
<PAGE>
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 March 31 of each year:
1997 1996
SERIES 7 ---------- --------------
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 2,382,026 $ 2,324,412
Investment properties, net 39,061,797 40,536,523
Other assets 97,380 117,448
------------- -------------
Total assets $ 41,541,203 $ 42,978,383
============= =============
Liabilities and Partners' Equity
Current liabilities $ 1,115,422 $ 1,216,485
Long-term debt 36,950,678 37,220,359
------------- -------------
Total liabilities 38,066,100 38,436,844
Partners' Equity
Limited Partner 3,461,558 4,485,903
General Partners 13,545 55,636
------------- ------------
3,475,103 4,541,539
Total liabilities and
partners' equity $ 41,541,203 $ 42,978,383
============= =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income $ 1,073,643 $ 1,052,555
Expenses:
Operating expenses 619,352 557,569
Interest expense 307,713 322,836
Depreciation and amortization 402,267 405,392
------------- -------------
Total expenses 1,329,332 1,285,797
Net loss $ (255,689) $ (233,242)
============= =============
Other partners' share
of net loss $ (2,557) $ (2,332)
Partnership's share
of net loss $ (253,132) $ (230,910)
Suspended loss 10,619 0
------------- -------------
Equity in Loss of
Project Partnerships $ (242,513) $ (230,910)
============= =============
<PAGE>
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 March 31 of each year:
1997 1996
SERIES 8 ---------- --------------
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,988,966 $ 1,777,410
Investment properties,
net 41,981,767 43,584,462
Other assets 65,566 95,264
------------- -------------
Total assets $ 44,036,299 $ 45,457,136
============= =============
Liabilities and Partners' Equity
Current liabilities $ 1,246,574 $ 1,419,615
Long-term debt 38,998,505 39,109,114
------------- -------------
Total liabilities 40,245,079 40,528,729
Partners' Equity
Limited Partner 3,843,554 4,960,886
General Partners (52,334) (32,479)
------------- ------------
3,791,220 4,928,407
Total liabilities and
partners' equity $ 44,036,299 $ 45,457,136
============= =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income $ 1,063,045 $ 948,232
Expenses:
Operating expenses 682,122 551,691
Interest expense 267,830 217,371
Depreciation and
amortization 385,116 388,034
------------- -------------
Total expenses 1,335,068 1,157,096
Net loss $ (272,023) $ (208,864)
============= =============
Other partners' share
of net loss $ (2,720) $ (2,089)
Partnership's share
of net loss $ (269,303) $ (206,775)
Suspended loss 3,760 0
------------- -------------
Equity in Loss of
Project Partnerships $ (265,543) $ (206,775)
============= =============
<PAGE>
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 March 31 of each year:
1997 1996
SERIES 9 ---------- --------------
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,333,321 $ 1,053,666
Investment properties,
net 23,295,181 24,180,155
Other assets 188,752 13,179
------------- -------------
Total assets $ 24,817,254 $ 25,247,000
============= =============
Liabilities and Partners' Equity
Current liabilities $ 677,625 $ 485,281
Long-term debt 20,645,207 20,708,124
------------- -------------
Total liabilities 21,322,832 21,193,405
Partners' Equity
Limited Partner 3,521,357 4,042,577
General Partners (26,935) 11,018
------------- ------------
3,494,422 4,053,595
Total liabilities and
partners' equity $ 24,817,254 $ 25,247,000
============= =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income $ 547,292 $ 530,314
Expenses:
Operating expenses 281,862 275,178
Interest expense 146,617 150,916
Depreciation and
amortization 215,781 220,035
------------- -------------
Total expenses 644,260 646,129
Net loss $ (96,968) $ (115,815)
============= =============
Other partners' share
of net loss $ (970) $ (1,158)
Partnership's share
of net loss $ (95,998) $ (114,657)
Suspended loss 0 0
------------- -------------
Equity in Loss of
Project Partnerships $ (95,998) $ (114,657)
============= =============
<PAGE>
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 March 31 of each year:
1997 1996
SERIES 10 ---------- --------------
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,028,221 $ 1,022,681
Investment properties,
net 16,079,503 16,563,334
Other assets 20,402 26,677
------------- -------------
Total assets $ 17,128,126 $ 17,612,692
============= =============
Liabilities and Partners' Equity
Current liabilities $ 240,248 $ 407,719
Long-term debt 13,535,883 13,605,647
------------- -------------
Total liabilities 13,776,131 14,013,366
Partners' Equity
Limited Partner 3,364,035 3,559,231
General Partners (12,040) 40,095
------------- ------------
3,351,995 3,599,326
Total liabilities and
partners' equity $ 17,128,126 $ 17,612,692
============= =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income $ 345,176 $ 348,206
Expenses:
Operating expenses 199,620 201,959
Interest expense 60,860 69,485
Depreciation and
amortization 122,857 126,097
------------- -------------
Total expenses 383,337 397,541
Net loss $ (38,161) $ (49,335)
============= =============
Other partners' share
of net loss $ (382) $ (493)
Partnership's share
of net loss $ (37,779) $ (48,842)
Suspended loss 0 0
------------- -------------
Equity in Loss of
Project Partnerships $ (37,779) $ (48,842)
============= =============
<PAGE>
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 March 31 of each year:
1997 1996
SERIES 11 ---------- --------------
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 630,783 $ 1,844,884
Investment properties,
net 14,350,170 14,647,464
Other assets 28,421 133,439
------------- -------------
Total assets $ 15,009,374 $ 16,625,787
============= =============
Liabilities and Partners' Equity
Current liabilities $ 194,137 $ 1,312,762
Long-term debt 10,918,640 11,071,935
------------- -------------
Total liabilities 11,112,777 12,384,697
Partners' Equity
Limited Partner 3,759,019 3,902,588
General Partners 137,578 338,502
------------- ------------
3,896,597 4,241,090
Total liabilities and
partners' equity $ 15,009,374 $ 16,625,787
============= =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income $ 376,957 $ 332,519
Expenses:
Operating expenses 179,721 167,232
Interest expense 109,833 88,675
Depreciation and
amortization 134,238 56,248
------------- -------------
Total expenses 423,792 312,155
Net loss $ (46,835) $ 20,364
============= =============
Other partners' share
of net loss $ (468) $ 204
Partnership's share
of net loss $ (46,367) $ 20,160
Suspended loss 0 0
------------- -------------
Equity in Loss of
Project Partnerships $ (46,367) $ 20,160
============= =============
<PAGE>
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 March 31 of each year:
1997 1996
TOTAL SERIES 7-11 ---------- --------------
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 7,363,317 $ 8,023,053
Investment properties,
net 134,768,418 139,511,938
Other assets 400,521 386,007
------------- -------------
Total assets $142,532,256 $147,920,998
============= =============
Liabilities and Partners' Equity
Current liabilities $ 3,474,006 $ 4,841,862
Long-term debt 121,048,913 121,715,179
------------- -------------
Total liabilities 124,522,919 126,557,041
Partners' Equity
Limited Partner 17,949,523 20,951,185
General Partners 59,814 412,772
------------- ------------
18,009,337 21,363,957
Total liabilities and
partners' equity $142,532,256 $147,920,998
============= =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income $ 3,406,113 $ 3,211,826
Expenses:
Operating expenses 1,962,677 1,753,629
Interest expense 892,853 849,283
Depreciation and
amortization 1,260,259 1,195,806
------------- -------------
Total expenses 4,115,789 3,798,718
Net loss $ (709,676) $ (586,892)
============= =============
Other partners' share
of net loss $ (7,097) $ (5,868)
Partnership's share
of net loss $ (702,579) $ (581,024)
Suspended loss 14,379 0
------------- -------------
Equity in Loss of
Project Partnerships $ (688,200) $ (581,024)
============= =============
<PAGE>
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations, Liquidity and Capital Resources
The proceeds from Limited Partner investors' capital contributions
available for investment are 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
three months ended June 30 1997 and June 30, 1996. The General and
Administrative expenses - General Partner and General and
Administrative expenses - Other for the three months ended June 30,
1997 are comparable to June 30, 1996. 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 investors' return of their
original capital contribution.)
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.
Series 7 - Gateway closed this series on October 16, 1992 after
receiving $10,395,000 from 635 Limited Partner investors. Equity
in Losses of Project Partnerships were comparable for the three
months ended June 30, 1997 and June 30, 1996. 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 June 30, 1997, the Series had $277,430 of short-term
investments (Cash and Cash Equivalents). It also had $474,675 in
Zero Coupon Treasuries with annual maturities providing $50,000 in
fiscal year 1999 increasing to $80,000 in fiscal year 2008.
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 $261,677 for the three months ended June 30, 1997.
However, after adjusting for Equity in Losses of Project
Partnerships of $242,513 and the changes in operating assets and
liabilities, net cash used in operating activities was $2,901.
Cash provided by investing activities totaled $12,351, consisting
of cash distributions from the Project Partnerships.
Series 8 - Gateway closed this Series on June 28, 1993 after
receiving $9,980,000 from 664 Limited Partner investors. Equity
in Losses of Project Partnerships were comparable for the three
months ended June 30, 1997 and June 30, 1996. At June 30, 1997,
the Series had $398,604 of short-term investments (Cash and Cash
Equivalents). It also had $448,111 in Zero Coupon Treasuries with
annual maturities providing $45,000 in fiscal year 1999 increasing
to $82,000 in fiscal year 2008. 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 $283,686 for the three months ended June 30, 1997.
However, after adjusting for Equity in Losses of Project
Partnerships of $265,543 and the changes in operating assets and
liabilities, net cash used in operating activities was $1,841. Cash
provided by investing activities totaled $4,407, consisting of cash
distributions from the Project Partnerships. There were no unusual
events or trends to describe.
Series 9 - Gateway closed this Series on September 30, 1993 after
receiving $6,254,000 from 406 Limited Partner investors. Equity in
Losses of Project Partnerships were comparable for the three months
ended June 30, 1997 and June 30, 1996. At June 30, 1997, the
Series had $161,968 of short-term investments (Cash and Cash
Equivalents). It also had $301,735 in Zero Coupon Treasuries with
annual maturities providing $29,000 in fiscal year 1999 increasing
to $47,000 in fiscal year 2009. 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 $106,900 for the three months ended June 30, 1997.
However, after adjusting for Equity in Losses of Project
Partnerships of $95,998 and the changes in operating assets and
liabilities, net cash used in operating activities was $1,856. Cash
provided by investing activities totaled $2,011, consisting
primarily of $3,216 of cash distributions from the Project
Partnerships. There were no unusual events or trends to describe.
Series 10 - Gateway closed this Series on January 21, 1994 after
receiving $5,043,000 from 325 Limited Partner investors. Equity
in Losses of Project Partnerships were comparable for the three
months ended June 30, 1997 and June 30, 1996. At June 30, 1997,
the Series had $202,950 of short-term investments (Cash and Cash
Equivalents). It also had $239,479 in Zero Coupon Treasuries with
annual maturities providing $24,000 in fiscal year 1999 increasing
to $40,000 in fiscal year 2010. 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 $42,651 for the three months ended June 30, 1997. However,
after adjusting for Equity in Losses of Project Partnerships of
$37,779 and the changes in operating assets and liabilities, net
cash used in operating activities was $381. Cash provided by
investing activities totaled $3,588, consisting primarily of $2,383
of cash distributions from the Project Partnerships. There were no
unusual events or trends to describe.
Series 11 - Gateway closed this Series on April 29, 1994 after
receiving $5,127,000 from 330 Limited investors. Equity in losses
of Project Partnerships increased from income of $20,160 for the
three months ended June 30, 1996 to losses of $46,367 for the three
months ended June 30, 1997 due to the number of properties moving
from the construction and rent-up phases to fully operational. At
June 30, 1997, the Series had $172,448 of short-term investments
(Cash and Cash Equivalents). It also had $251,819 in Zero Coupon
Treasuries with annual maturities providing $23,000 in fiscal year
1999 increasing to $44,000 in fiscal year 2010. 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 $49,526 for the three months ended June 30, 1997.
However, after adjusting for Equity in Losses of Project
Partnerships of $46,367 and the changes in operating assets and
liabilities, net cash used in operating activities was $619. Cash
provided by investing activities totaled $3,682, consisting of cash
distributions from the Project Partnerships. There were no unusual
events or trends to describe.
<PAGE>
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 III LTD.
(A Florida Limited Partnership)
By: Raymond James Tax Credit Funds,Inc.
Date: August 29, 1997 By:/s/ Ronald M. Diner
Ronald M. Diner
President
Date: August 29, 1997 By:/s/ Sandra L. Furey
Sandra L. Furey
Secretary and Treasurer<PAGE>
<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 JUNE 30, 1997.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 1,213,400
<SECURITIES> 11,715,819
<RECEIVABLES> 3,664
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,372,090
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 22,794,012
<CURRENT-LIABILITIES> 180,903
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 21,980,986
<TOTAL-LIABILITY-AND-EQUITY> 22,794,012
<SALES> 0
<TOTAL-REVENUES> 42,250
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 98,490
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (744,440)
<INCOME-TAX> 0
<INCOME-CONTINUING> (744,440)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (744,440)
<EPS-PRIMARY> (20.03)<F1>
<EPS-DILUTED> (20.03)<F1>
<FN>
<F1>EPS IS NET LOSS PER $1,000 LIMITED PARTNERSHIP UNIT.
</FN>
</TABLE>
