45
GTWY3
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, 2000
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: (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 June 30, 2000
Units of Limited Partnership
Interest: $1,000 per unit 33,799
DOCUMENTS INCORPORATED BY REFERENCE
Parts I and II, 1999 Form 10-K, filed with the
Securities and Exchange Commission on July 14, 2000
Parts III and IV - Form S-11 Registration Statement
and all amendments and supplements thereto
File No. 33-44238
PART I - Financial Information
Item 1. Financial Statements
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 7 JUNE 30, MARCH 31,
2000 2000
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 320,605 $ 324,156
Investments in Securities 54,940 54,067
------------ ------------
Total Current Assets 375,545 378,223
Investments in Securities 362,610 356,248
Investments in Project Partnerships, Net 2,068,145 2,237,728
----------- -----------
Total Assets $ 2,806,300 $ 2,972,199
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 48,334 $ 54,468
----------- -----------
Total Current Liabilities 48,334 54,468
----------- -----------
Long-Term Liabilities:
Payable to General Partners 333,283 312,688
----------- -----------
Partners' Equity (Deficit):
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 June 30, 2000 and March 31, 2000) 2,491,714 2,670,270
General Partners (67,031) (65,227)
----------- -----------
Total Partners' Equity 2,424,683 2,605,043
----------- -----------
Total Liabilities and Partners' Equity $ 2,806,300 $ 2,972,199
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 8 JUNE 30, MARCH 31,
2000 2000
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 425,283 $ 425,447
Investments in Securities 52,115 51,329
------------ ------------
Total Current Assets 477,398 476,776
Investments in Securities 344,410 338,702
Investments in Project Partnerships, Net 1,263,554 1,423,188
----------- -----------
Total Assets $ 2,085,362 $ 2,238,666
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 38,685 $ 45,318
----------- -----------
Total Current Liabilities 38,685 45,318
----------- -----------
Long-Term Liabilities:
Payable to General Partners 386,050 364,673
----------- -----------
Partners' Equity (Deficit):
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 June 30, 2000 and March 31, 2000) 1,731,645 1,898,013
General Partners (71,018) (69,338)
----------- -----------
Total Partners' Equity 1,660,627 1,828,675
----------- -----------
Total Liabilities and Partners' Equity $ 2,085,362 $ 2,238,666
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 9 JUNE 30, MARCH 31,
2000 2000
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 212,232 $ 209,964
Investments in Securities 30,982 30,560
------------ ------------
Total Current Assets 243,214 240,524
Investments in Securities 233,250 229,761
Investments in Project Partnerships, Net 2,148,595 2,303,872
----------- -----------
Total Assets $ 2,625,059 $ 2,774,157
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 22,299 $ 25,970
----------- -----------
Total Current Liabilities 22,299 25,970
----------- -----------
Long-Term Liabilities:
Payable to General Partners 226,245 214,521
----------- -----------
Partners' Equity (Deficit):
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 June 30, 2000 and March 31, 2000) 2,407,587 2,563,166
General Partners (31,072) (29,500)
----------- -----------
Total Partners' Equity 2,376,515 2,533,666
----------- -----------
Total Liabilities and Partners' Equity $ 2,625,059 $ 2,774,157
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 10 JUNE 30, MARCH 31,
2000 2000
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 227,814 $ 226,070
Investments in Securities 24,162 23,784
------------ ------------
Total Current Assets 251,976 249,854
Investments in Securities 191,507 188,259
Investments in Project Partnerships, Net 2,662,114 2,764,397
----------- -----------
Total Assets $ 3,105,597 $ 3,202,510
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 26,559 $ 29,116
----------- -----------
Total Current Liabilities 26,559 29,116
----------- -----------
Long-Term Liabilities:
Payable to General Partners 65,517 57,475
----------- -----------
Partners' Equity (Deficit):
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 June 30, 2000 and March 31, 2000) 3,027,566 3,128,940
General Partners (14,045) (13,021)
----------- -----------
Total Partners' Equity 3,013,521 3,115,919
----------- -----------
Total Liabilities and Partners' Equity $ 3,105,597 $ 3,202,510
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 11 JUNE 30, MARCH 31,
2000 2000
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 229,070 $ 230,874
Investments in Securities 24,994 24,571
------------ ------------
Total Current Assets 254,064 255,445
Investments in Securities 212,247 208,405
Investments in Project Partnerships, Net 3,471,049 3,534,837
----------- -----------
Total Assets $ 3,937,360 $ 3,998,687
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 26,660 $ 28,842
----------- -----------
Total Current Liabilities 26,660 28,842
----------- -----------
Long-Term Liabilities:
Payable to General Partners 25,877 19,190
----------- -----------
Partners' Equity (Deficit):
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 June 30, 2000 and March 31, 2000) 3,891,965 3,957,139
General Partners (7,142) (6,484)
----------- -----------
Total Partners' Equity 3,884,823 3,950,655
----------- -----------
Total Liabilities and Partners' Equity $ 3,937,360 $ 3,998,687
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
TOTAL SERIES 7 - 11 JUNE 30, MARCH 31,
2000 2000
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 1,415,004 $ 1,416,511
Investments in Securities 187,193 184,311
------------ ------------
Total Current Assets 1,602,197 1,600,822
Investments in Securities 1,344,024 1,321,375
Investments in Project Partnerships, Net 11,613,457 12,264,022
----------- -----------
Total Assets $14,559,678 $15,186,219
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 162,537 $ 183,714
----------- -----------
Total Current Liabilities 162,537 183,714
----------- -----------
Long-Term Liabilities:
Payable to General Partners 1,036,972 968,547
----------- -----------
Partners' Equity (Deficit):
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 June 30, 2000 and March 31, 2000) 13,550,477 14,217,528
General Partners (190,308) (183,570)
----------- -----------
Total Partners' Equity 13,360,169 14,033,958
----------- -----------
Total Liabilities and Partners' Equity $14,559,678 $15,186,219
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
SERIES 7 2000 1999
---- ----
Revenues:
Interest Income $ 11,720 $ 10,670
----------- -----------
Expenses:
Asset Management Fee-General Partner 21,988 22,052
General and Administrative:
General Partner 3,257 2,936
Other 3,255 3,038
Amortization 3,549 4,368
----------- -----------
Total Expenses 32,049 32,394
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (20,329) (21,724)
Equity in Losses of Project
Partnerships (160,031) (149,531)
---------- ----------
Net Loss $ (180,360) $ (171,255)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (178,556) $ (169,542)
General Partners (1,804) (1,713)
----------- -----------
$ (180,360) $ (171,255)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (17.18) $ (16.31)
============ ============
Number of Limited Partnership Units
Outstanding 10,395 10,395
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
SERIES 8 2000 1999
---- ----
Revenues:
Interest Income $ 12,359 $ 11,075
----------- -----------
Expenses:
Asset Management Fee-General Partner 22,914 22,983
General and Administrative:
General Partner 3,591 3,237
Other 3,343 3,369
Amortization 2,264 3,260
----------- -----------
Total Expenses 32,112 32,849
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (19,753) (21,774)
Equity in Losses of Project
Partnerships (148,295) (206,077)
---------- ----------
Net Loss $ (168,048) $ (227,851)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (166,368) $ (225,572)
General Partners (1,680) (2,279)
----------- -----------
$ (168,048) $ (227,851)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (16.67) $ (22.60)
============ ============
Number of Limited Partnership Units
Outstanding 9,980 9,980
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
SERIES 9 2000 1999
---- ----
Revenues:
Interest Income $ 6,832 $ 6,140
----------- -----------
Expenses:
Asset Management Fee-General Partner 12,580 12,615
General and Administrative:
General Partner 2,004 1,807
Other 2,166 1,911
Amortization 1,430 1,743
----------- -----------
Total Expenses 18,180 18,076
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (11,348) (11,936)
Equity in Losses of Project
Partnerships (145,803) (133,500)
---------- ----------
Net Loss $ (157,151) $ (145,436)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (155,579) $ (143,982)
General Partners (1,572) (1,454)
----------- -----------
$ (157,151) $ (145,436)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (24.88) $ (23.02)
============ ============
Number of Limited Partnership Units
Outstanding 6,254 6,254
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
SERIES 10 2000 1999
---- ----
Revenues:
Interest Income $ 6,779 $ 6,009
----------- -----------
Expenses:
Asset Management Fee-General Partner 8,577 8,607
General and Administrative:
General Partner 1,253 1,129
Other 1,555 1,388
Amortization 1,405 1,406
----------- -----------
Total Expenses 12,790 12,530
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (6,011) (6,521)
Equity in Losses of Project
Partnerships (96,387) (48,979)
---------- ----------
Net Loss $ (102,398) $ (55,500)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (101,374) $ (54,945)
General Partners (1,024) (555)
----------- -----------
$ (102,398) $ (55,500)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (20.10) $ (10.90)
============ ============
Number of Limited Partnership Units
Outstanding 5,043 5,043
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
SERIES 11 2000 1999
---- ----
Revenues:
Interest Income $ 7,456 $ 6,666
----------- -----------
Expenses:
Asset Management Fee-General Partner 7,116 6,930
General and Administrative:
General Partner 1,002 903
Other 1,564 1,300
Amortization 2,073 2,074
----------- -----------
Total Expenses 11,755 11,207
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (4,299) (4,541)
Equity in Losses of Project
Partnerships (61,533) (38,629)
---------- ----------
Net Loss $ (65,832) $ (43,170)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (65,174) $ (42,738)
General Partners (658) (432)
----------- -----------
$ (65,832) $ (43,170)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (12.71) $ (8.34)
============ ============
Number of Limited Partnership Units
Outstanding 5,127 5,127
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
TOTAL SERIES 7 - 11 2000 1999
---- ----
Revenues:
Interest Income $ 45,146 $ 40,560
----------- -----------
Expenses:
Asset Management Fee-General Partner 73,175 73,187
General and Administrative:
General Partner 11,107 10,012
Other 11,883 11,006
Amortization 10,721 12,851
----------- -----------
Total Expenses 106,886 107,056
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (61,740) (66,496)
Equity in Losses of Project
Partnerships (612,049) (576,716)
---------- ----------
Net Loss $ (673,789) $ (643,212)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (667,051) $ (636,780)
General Partners (6,738) (6,432)
----------- -----------
$ (673,789) $ (643,212)
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999:
Limited General
SERIES 7 Partners Partners Total
--------- -------- -----
Balance at March 31, 1999 $ 3,220,449 $ (59,670) $ 3,160,779
Net Loss (169,542) (1,713) (171,255)
----------- ----------- -----------
Balance at June 30, 1999 $ 3,050,907 $ (61,383) $ 2,989,524
============ ============ ============
Balance at March 31, 2000 $ 2,670,270 $ (65,227) $ 2,605,043
Net Loss (178,556) (1,804) (180,360)
----------- ----------- -----------
Balance at June 30, 2000 $ 2,491,714 $ (67,031) $ 2,424,683
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999:
Limited General
SERIES 8 Partners Partners Total
--------- -------- -----
Balance at March 31, 1999 $ 3,132,833 $ (56,866) $ 3,075,967
Net Loss (225,572) (2,279) (227,851)
----------- ----------- -----------
Balance at June 30, 1999 $ 2,907,261 $ (59,145) $ 2,848,116
============ ============ ============
Balance at March 31, 2000 $ 1,898,013 $ (69,338) $ 1,828,675
Net Loss (166,368) (1,680) (168,048)
----------- ----------- -----------
Balance at June 30, 2000 $ 1,731,645 $ (71,018) $ 1,660,627
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999:
Limited General
SERIES 9 Partners Partners Total
--------- -------- -----
Balance at March 31, 1999 $ 3,105,611 $ (24,021) $ 3,081,590
Net Loss (143,982) (1,454) (145,436)
----------- ----------- -----------
Balance at June 30, 1999 $ 2,961,629 $ (25,475) $ 2,936,154
============ ============ ============
Balance at March 31, 2000 $ 2,563,166 $ (29,500) $ 2,533,666
Net Loss (155,579) (1,572) (157,151)
----------- ----------- -----------
Balance at June 30, 2000 $ 2,407,587 $ (31,072) $ 2,376,515
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999:
Limited General
SERIES 10 Partners Partners Total
--------- -------- -----
Balance at March 31, 1999 $ 3,454,065 $ (9,737) $ 3,444,328
Net Loss (54,945) (555) (55,500)
----------- ----------- -----------
Balance at June 30, 1999 $ 3,399,120 $ (10,292) $ 3,388,828
============ ============ ============
Balance at March 31, 2000 $ 3,128,940 $ (13,021) $ 3,115,919
Net Loss (101,374) (1,024) (102,398)
----------- ----------- -----------
Balance at June 30, 2000 $ 3,027,566 $ (14,045) $ 3,013,521
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999:
Limited General
SERIES 11 Partners Partners Total
--------- -------- -----
Balance at March 31, 1999 $ 4,120,106 $ (4,838) $ 4,115,268
Net Loss (42,738) (432) (43,170)
----------- ----------- -----------
Balance at June 30, 1999 $ 4,077,368 $ (5,270) $ 4,072,098
============ ============ ============
Balance at March 31, 2000 $ 3,957,139 $ (6,484) $ 3,950,655
Net Loss (65,174) (658) (65,832)
----------- ----------- -----------
Balance at June 30, 2000 $ 3,891,965 $ (7,142) $ 3,884,823
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999:
Limited General
TOTAL SERIES 7 - 11 Partners Partners Total
--------- -------- -----
Balance at March 31, 1999 $17,033,064 $ (155,132) $16,877,932
Net Loss (636,780) (6,432) (643,212)
----------- ----------- -----------
Balance at June 30, 1999 $16,396,284 $ (161,564) $16,234,720
============ ============ ============
Balance at March 31, 2000 $14,217,528 $ (183,570) $14,033,958
Net Loss (667,051) (6,738) (673,789)
----------- ----------- -----------
Balance at June 30, 2000 $13,550,477 $ (190,308) $13,360,169
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
SERIES 7 2000 1999
-------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (180,360) $ (171,255)
Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Amortization 3,549 4,368
Accreted Interest Income on Investments
in Securities (7,235) (7,517)
Equity in Losses of Project Partnerships 160,031 149,531
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 14,462 22,018
----------- -----------
Net Cash Used in Operating Activities (9,553) (2,855)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 6,002 8,993
----------- -----------
Net Cash Provided by Investing
Activities 6,002 8,993
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (3,551) 6,138
Cash and Cash Equivalents at Beginning of
Year 324,156 299,313
----------- -----------
Cash and Cash Equivalents at End of Year $ 320,605 $ 305,451
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
SERIES 8 2000 1999
-------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (168,048) $ (227,851)
Adjustments to Reconcile Net Loss to Net
Cash Used In Operating Activities:
Amortization 2,264 3,260
Accreted Interest Income on Investments
in Securities (6,496) (6,751)
Equity in Losses of Project Partnership 148,295 206,077
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 14,746 23,061
----------- -----------
Net Cash Used in Operating Activities (9,239) (2,204)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 9,075 12,745
----------- -----------
Net Cash Provided by Investing
Activities 9,075 12,745
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (164) 10,541
Cash and Cash Equivalents at Beginning of
Year 425,447 411,602
----------- -----------
Cash and Cash Equivalents at End of Year $ 425,283 $ 422,143
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
SERIES 9 2000 1999
-------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (157,151) $ (145,436)
Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Amortization 1,430 1,743
Accreted Interest Income on Investments
in Securities (3,912) (4,079)
Equity in Losses of Project Partnerships 145,803 133,500
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 8,053 12,481
----------- -----------
Net Cash Used in Operating Activities (5,777) (1,791)
----------- -----------
Cash Flows from Investing Activities:
Increase in Receivable from Other Series 0 (2,208)
Decrease in Receivable from Project
Partnerships 0 2,208
Distributions Received from Project
Partnerships 8,045 5,846
Increase (Decrease) in Payable -
Other Series 0 1,003
Project Partnerships - Capital
Contributions 0 (1,003)
----------- -----------
Net Cash Provided by Investing
Activities 8,045 5,846
----------- -----------
Increase in Cash and Cash Equivalents 2,268 4,055
Cash and Cash Equivalents at Beginning of
Year 209,964 195,618
----------- -----------
Cash and Cash Equivalents at End of Year $ 212,232 $ 199,673
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
SERIES 10 2000 1999
-------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (102,398) $ (55,500)
Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Amortization 1,405 1,406
Accreted Interest Income on Investments
in Securities (3,624) (3,735)
Equity in Losses of Project Partnerships 96,387 48,979
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 5,485 8,610
----------- -----------
Net Cash Used in Operating Activities (2,745) (240)
----------- -----------
Cash Flows from Investing Activities:
Increase in Receivable from Other Series 0 (1,003)
Decrease in Receivable from Project
Partnerships 0 253
Distributions Received from Project
Partnerships 4,489 4,489
Increase (Decrease) in Payable -
Other Series 0 2,208
Project Partnerships - Capital
Contributions 0 (2,208)
----------- -----------
Net Cash Provided by Investing
Activities 4,489 3,739
----------- -----------
Increase in Cash and Cash Equivalents 1,744 3,499
Cash and Cash Equivalents at Beginning of
Year 226,070 216,566
----------- -----------
Cash and Cash Equivalents at End of Year $ 227,814 $ 220,065
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
SERIES 11 2000 1999
-------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (65,832) $ (43,170)
Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Amortization 2,073 2,074
Accreted Interest Income on Investments
in Securities (4,263) (4,347)
Equity in Losses of Project Partnerships 61,533 38,629
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 4,505 6,940
----------- -----------
Net Cash Provided by (Used in)
Operating Activities (1,984) 126
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 180 0
----------- -----------
Net Cash Provided by Investing
Activities 180 0
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (1,804) 126
Cash and Cash Equivalents at Beginning of
Year 230,874 223,024
----------- -----------
Cash and Cash Equivalents at End of Year $ 229,070 $ 223,150
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
TOTAL SERIES 7 - 11 2000 1999
------------------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (673,789) $ (643,212)
Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Amortization 10,721 12,851
Accreted Interest Income on Investments
in Securities (25,530) (26,429)
Equity in Losses of Project Partnerships 612,049 576,716
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 47,251 73,110
----------- -----------
Net Cash Used in Operating Activities (29,298) (6,964)
----------- -----------
Cash Flows from Investing Activities:
Increase in Receivable from Other Series 0 (3,211)
Decrease in Receivable from Project
Partnerships 0 2,461
Distributions Received from Project
Partnerships 27,791 32,073
Increase (Decrease) in Payable -
Other Series 0 3,211
Project Partnerships - Capital
Contributions 0 (3,211)
----------- -----------
Net Cash Provided by Investing
Activities 27,791 31,323
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (1,507) 24,359
Cash and Cash Equivalents at Beginning of
Year 1,416,511 1,346,123
----------- -----------
Cash and Cash Equivalents at End of Year $ 1,415,004 $ 1,370,482
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
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 June 30, 2000, 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 in
curred.
Gateway accounts for its investments as the 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 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
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.
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.
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, 2000. 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, 2000 Balance Sheet includes Investment in Securities
consisting of U.S. Treasury Security Strips which represents their cost,
plus accreted interest income of $175,979 for Series 7, $152,414 for Series
8, $86,473 for Series 9, $75,274 for Series 10 and $85,289 for Series 11.
Gross Unrealized
Estimated Market Cost Plus Gains and
Value Accreted Interest (Losses)
----------------- ----------------- ----------------
Series 7 $ 435,474 $ 417,550 $ 17,924
Series 8 407,274 396,525 10,749
Series 9 264,349 264,232 117
Series 10 223,053 215,669 7,384
Series 11 252,420 237,241 15,179
As of June 30, 2000, the cost and accreted interest of debt securities by
contractual maturities is as follows:
Series 7 Series 8 Series 9
-------- -------- --------
Due with 1 year $ 54,940 $ 52,115 $ 30,982
After 1 year through 5 years 212,583 198,639 120,629
After 5 years through 10 years 150,027 145,771 112,621
Over 10 years 0 0 0
---------- ---------- ----------
Total Amount Carried on
Balance Sheet $ 417,550 $ 396,525 $ 264,232
========== ========== ==========
Series 10 Series 11 Total
-------- -------- --------
Due with 1 year $ 24,162 $ 24,994 $ 187,193
After 1 year through 5 years 89,853 99,147 720,851
After 5 years through 10 years 101,654 113,100 623,173
Over 10 years 0 0 0
---------- ---------- ----------
Total Amount Carried on
Balance Sheet $ 215,669 $ 237,241 $1,531,217
========== ========== ==========
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 2000 and 1999 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 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.
2000 1999
----- -----
Series 7 $ 21,988 $ 22,052
Series 8 22,914 22,983
Series 9 12,580 12,615
Series 10 8,577 8,607
Series 11 7,116 6,930
-------- --------
Total $ 73,175 $ 73,187
======== ========
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 $ 3,257 $ 2,936
Series 8 3,591 3,237
Series 9 2,004 1,807
Series 10 1,253 1,129
Series 11 1,002 903
-------- --------
Total $ 11,107 $ 10,012
======== ========
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:
As of June 30, 2000, the Partnership had acquired a 99% interest in the
profits, losses and tax credits as a limited partner in 39 Project
Partnerships which own and operate government assisted multi-family housing
complexes. 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 7 JUNE 30, MARCH 31,
2000 2000
-------------- -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships $ 7,732,089 $ 7,732,089
Cumulative equity in losses of Project
Partnerships (1) (6,133,399) (5,973,368)
Cumulative distributions received from
Project Partnerships (163,553) (157,551)
----------- -----------
Investment in Project Partnerships before
adjustment 1,435,137 1,601,170
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 793,335 793,335
Accumulated amortization of acquisition
fees and expenses (160,327) (156,777)
------------ ------------
Investments in Project Partnerships $ 2,068,145 $ 2,237,728
============ ============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $797,990 for the period ended June 30, 2000 and cumulative suspended
losses of $650,567 for the year ended March 31, 2000 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (CONTINUED):
As of June 30, 2000, the Partnership had acquired a 99% interest in the
profits, losses and tax credits as a limited partner in 43 Project
Partnerships which own and operate government assisted multi-family housing
complexes. 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 8 JUNE 30, MARCH 31,
2000 2000
-------------- -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships $ 7,586,105 $ 7,586,105
Cumulative equity in losses of Project
Partnerships (1) (6,639,422) (6,491,127)
Cumulative distributions received from
Project Partnerships (134,679) (125,604)
----------- -----------
Investment in Project Partnerships before
adjustment 812,004 969,374
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 549,773 549,773
Accumulated amortization of acquisition
fees and expenses (98,223) (95,959)
------------ ------------
Investments in Project Partnerships $ 1,263,554 $ 1,423,188
============ ============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $840,015 for the period ended June 30, 2000 and cumulative suspended
losses of $678,455 for the year ended March 31, 2000 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (CONTINUED):
As of June 30, 2000, the Partnership had acquired a 99% interest in the
profits, losses and tax credits as a limited partner in 24 Project
Partnerships which own and operate government assisted multi-family housing
complexes. 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 9 JUNE 30, MARCH 31,
2000 2000
-------------- -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships $ 4,914,116 $ 4,914,116
Cumulative equity in losses of Project
Partnerships (1) (2,871,743) (2,725,940)
Cumulative distributions received from
Project Partnerships (93,781) (85,736)
----------- ----------
Investment in Project Partnerships before
adjustment 1,948,592 2,102,440
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 244,087 244,087
Accumulated amortization of acquisition
fees and expenses (44,084) (42,655)
------------ ------------
Investments in Project Partnerships $ 2,148,595 $ 2,303,872
============ ============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $104,334 for the period ended June 30, 2000 and cumulative suspended
losses of $78,588 for the year ended March 31, 2000 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (CONTINUED):
As of June 30, 2000, the Partnership had acquired a 99% interest in the
profits, losses and tax credits as a limited partner in 15 Project
Partnerships which own and operate government assisted multi-family housing
complexes. 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 10 JUNE 30, MARCH 31,
2000 2000
-------------- -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships $ 3,914,672 $ 3,914,672
Cumulative equity in losses of Project
Partnerships (1) (1,308,147) (1,211,760)
Cumulative distributions received from
Project Partnerships (105,106) (100,617)
----------- ----------
Investment in Project Partnerships before
adjustment 2,501,419 2,602,295
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 196,738 196,738
Accumulated amortization of acquisition
fees and expenses (36,043) (34,636)
------------- ------------
Investments in Project Partnerships $ 2,662,114 $ 2,764,397
============= ============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $0 for the period ended June 30, 2000 and cumulative suspended losses of
$0 for the year ended March 31, 2000 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (CONTINUED):
As of June 30, 2000, the Partnership had acquired a 99% interest in the
profits, losses and tax credits as a limited partner in 12 Project
Partnerships which own and operate government assisted multi-family housing
complexes. 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 11 JUNE 30, MARCH 31,
2000 2000
-------------- -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships $ 4,128,042 $ 4,128,042
Cumulative equity in losses of Project
Partnerships (1) (823,559) (762,026)
Cumulative distributions received from
Project Partnerships (78,646) (78,466)
----------- -----------
Investment in Project Partnerships before
adjustment 3,225,837 3,287,550
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 290,335 290,335
Accumulated amortization of acquisition
fees and expenses (45,123) (43,048)
------------ -----------
Investments in Project Partnerships $ 3,471,049 $ 3,534,837
============= =============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $0 for the period June 30, 2000 and cumulative suspended losses of $0
for the year ended March 31, 2000 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (CONTINUED):
The following is a summary of Investments in Project Partnerships as of:
TOTAL SERIES 7 - 11 JUNE 30, MARCH 31,
2000 2000
-------------- -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships $28,275,024 $28,275,024
Cumulative equity in losses of Project
Partnerships (1) (17,776,270) (17,164,221)
Cumulative distributions received from
Project Partnerships (575,765) (547,974)
------------ -----------
Investment in Project Partnerships before
adjustment 9,922,989 10,562,829
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 2,074,268 2,074,268
Accumulated amortization of acquisition
fees and expenses (383,800) (373,075)
------------ ------------
Investments in Project Partnerships $11,613,457 $12,264,022
============ =============
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:
2000 1999
SERIES 7 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 3,286,607 $ 2,946,638
Investment properties, net 34,766,675 36,185,284
Other assets 28,215 24,358
------------ ------------
Total assets $38,081,497 $39,156,280
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 962,471 $ 877,536
Long-term debt 36,595,769 36,724,911
------------ ------------
Total liabilities 37,558,240 37,602,447
------------ ------------
Partners' equity
Limited Partner 581,482 1,579,997
General Partners (58,225) (26,164)
----------- -----------
Total Partners' equity 523,257 1,553,833
----------- -----------
Total liabilities and partners' equity $38,081,497 $39,156,280
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 1,102,980 $ 1,134,117
Expenses: ------------ ------------
Operating expenses 722,145 650,599
Interest expense 315,721 329,624
Depreciation and amortization 375,674 381,100
------------ ------------
Total expenses 1,413,540 1,361,323
------------ ------------
Net loss $ (310,560) $ (227,206)
============ ============
Other partners' share of net loss $ (3,106) $ (2,272)
============ ============
Partnerships' share of net loss $ (307,454) $ (224,934)
Suspended losses 147,423 75,403
------------ ------------
Equity in Losses of Project Partnerships $ (160,031) $ (149,531)
============ ============
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:
2000 1999
SERIES 8 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 2,805,294 $ 2,586,755
Investment properties, net 36,799,203 38,841,818
Other assets 35,540 44,825
------------ ------------
Total assets $39,640,037 $41,473,398
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 1,174,362 $ 1,177,277
Long-term debt 38,632,651 38,748,083
------------ ------------
Total liabilities 39,807,013 39,925,360
------------ ------------
Partners' equity
Limited Partner 191,888 1,687,033
General Partners (358,864) (138,995)
----------- -----------
Total Partners' equity (166,976) 1,548,038
----------- -----------
Total liabilities and partners' equity $39,640,037 $41,473,398
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 1,084,656 $ 1,053,058
Expenses: ------------ ------------
Operating expenses 718,440 640,304
Interest expense 280,925 267,569
Depreciation and amortization 399,364 401,700
------------ ------------
Total expenses 1,398,729 1,309,573
------------ ------------
Net loss $ (314,073) $ (256,515)
============ ============
Other partners' share of net loss $ (4,218) $ (2,565)
============ ============
Partnerships' share of net loss $ (309,855) $ (253,950)
Suspended losses 161,560 47,873
------------ ------------
Equity in Losses of Project Partnerships $ (148,295) $ (206,077)
============ ============
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:
2000 1999
SERIES 9 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,690,741 $ 1,653,121
Investment properties, net 20,783,276 21,578,510
Other assets 7,171 5,434
------------ ------------
Total assets $22,481,188 $23,237,065
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 345,590 $ 354,208
Long-term debt 20,453,083 20,522,119
------------ ------------
Total liabilities 20,798,673 20,876,327
------------ ------------
Partners' equity
Limited Partner 1,828,026 2,467,825
General Partners (145,511) (107,087)
----------- -----------
Total Partners' equity 1,682,515 2,360,738
----------- -----------
Total liabilities and partners' equity $22,481,188 $23,237,065
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 545,549 $ 554,665
Expenses: ------------ ------------
Operating expenses 353,939 317,369
Interest expense 154,609 150,571
Depreciation and amortization 210,283 221,573
------------ ------------
Total expenses 718,831 689,513
------------ ------------
Net loss $ (173,282) $ (134,848)
============ ============
Other partners' share of net los s $ (1,733) $ (1,348)
============ ============
Partnerships' share of net loss $ (171,549) $ (133,500)
Suspended losses 25,746 0
------------ ------------
Equity in Losses of Project Partnerships $ (145,803) $ (133,500)
============ ============
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:
2000 1999
SERIES 10 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,335,477 $ 1,328,224
Investment properties, net 14,640,911 15,093,954
Other assets 3,344 7,179
------------ ------------
Total assets $15,979,732 $16,429,357
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 269,297 $ 234,746
Long-term debt 13,401,127 13,434,411
------------ ------------
Total liabilities 13,670,424 13,669,157
------------ ------------
Partners' equity
Limited Partner 2,504,580 2,880,006
General Partners (195,272) (119,806)
----------- -----------
Total Partners' equity 2,309,308 2,760,200
----------- -----------
Total liabilities and partners' equity $15,979,732 $16,429,357
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 355,705 $ 391,315
Expenses: ------------ ------------
Operating expenses 250,645 221,226
Interest expense 78,897 91,366
Depreciation and amortization 123,912 128,197
------------ ------------
Total expenses 453,454 440,789
------------ ------------
Net loss $ (97,749) $ (49,474)
============ ============
Other partners' share of net loss $ (1,362) $ (495)
============ ============
Partnerships' share of net loss $ (96,387) $ (48,979)
Suspended losses 0 0
------------ ------------
Equity in Losses of Project Partnerships $ (96,387) $ (48,979)
============ ============
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:
2000 1999
SERIES 11 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,185,791 $ 1,093,783
Investment properties, net 12,950,062 13,401,509
Other assets 14,574 7,113
------------ ------------
Total assets $14,150,427 $14,502,405
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 315,787 $ 308,954
Long-term debt 10,626,656 10,736,223
------------ ------------
Total liabilities 10,942,443 11,045,177
------------ ------------
Partners' equity
Limited Partner 3,233,666 3,416,236
General Partners (25,682) 40,992
----------- -----------
Total Partners' equity 3,207,984 3,457,228
----------- -----------
Total liabilities and partners' equity $14,150,427 $14,502,405
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 398,064 $ 384,790
Expenses: ------------ ------------
Operating expenses 226,952 189,341
Interest expense 108,112 107,063
Depreciation and amortization 128,922 127,405
------------ ------------
Total expenses 463,986 423,809
------------ ------------
Net loss $ (65,922) $ (39,019)
============ ============
Other partners' share of net loss $ (4,389) $ (390)
============ ============
Partnerships' share of net loss $ (61,533) $ (38,629)
Suspended losses 0 0
------------ ------------
Equity in Losses of Project Partnerships $ (61,533) $ (38,629)
============ ============
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:
2000 1999
TOTAL SERIES 7 - 11 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 10,303,910 $ 9,608,521
Investment properties, net 119,940,127 125,101,075
Other assets 88,844 88,909
------------ ------------
Total assets $130,332,881 $134,798,505
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 3,067,507 $ 2,952,721
Long-term debt 119,709,286 120,165,747
------------ ------------
Total liabilities 122,776,793 123,118,468
------------ ------------
Partners' equity
Limited Partner 8,339,642 12,031,097
General Partners (783,554) (351,060)
----------- -----------
Total Partners' equity 7,556,088 11,680,037
----------- -----------
Total liabilities and partners' equity $130,332,881 $134,798,505
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 3,486,954 $ 3,517,945
Expenses: ------------ ------------
Operating expenses 2,272,121 2,018,839
Interest expense 938,264 946,193
Depreciation and amortization 1,238,155 1,259,975
------------ ------------
Total expenses 4,448,540 4,225,007
------------ ------------
Net loss $ (961,586) $ (707,062)
============ ============
Other partners' share of net loss $ (14,809) $ (7,071)
============ ============
Partnerships' share of net loss $ (946,777) $ (699,992)
Suspended losses 334,729 123,276
------------ ------------
Equity in Losses of Project Partnerships $ (612,048) $ (576,716)
============ ============
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, 2000 and June 30, 1999. The General and Administrative expenses -
General Partner and General and Administrative expenses - Other for the
three months ended June 30, 2000 are comparable to June 30, 1999. 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 for the three months ended June 30, 1999 were
comparable for the three months ended June 30, 2000. 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, 1999, the Series had $320,605 of short-term investments (Cash
and Cash Equivalents). It also had $417,550 in Zero Coupon Treasuries with
annual maturities providing $57,000 in fiscal year 2001 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
$180,360 for the three months ended June 30, 2000. However, after
adjusting for Equity in Losses of Project Partnerships of $160,031 and the
changes in operating assets and liabilities, net cash used in operating
activities was $9,553. Cash provided by investing activities totaled
$6,002 consisting of cash distributions from the Project Partnerships.
Series 8 - Gateway closed this Series on September 28, 1993 after
receiving $9,980,000 from 664 Limited Partner investors. Equity in Losses
of Project Partnerships for the three months ended June 30, 2000 decreased
from $206,077 for the three months ended June 30, 1999 to $148,295 as a
result of not including losses of $161,560 in 2000 as compared to $47,873
in 1999, as these losses would reduce the investment in certain Project
Partnerships below zero. At June 30, 2000, the Series had $425,283 of
short-term investments (Cash and Cash Equivalents). It also had $396,525
in Zero Coupon Treasuries with annual maturities providing $54,000 in
fiscal year 2001 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
$168,048 for the three months ended June 30, 2000. However, after
adjusting for Equity in Losses of Project Partnerships of $148,295 and the
changes in operating assets and liabilities, net cash used in operating
activities was $9,239. Cash provided by investing activities totaled
$9,075, consisting of cash distributions from the Project Partnerships.
There were no unusual events or trends to describe.
Series 9 - Gateway closed this Series on December 31, 1993 after receiving
$6,254,000 from 406 Limited Partner investors. Equity in Losses of Project
Partnerships for the three months ended June 30, 1999 were comparable for
the three months ended June 30, 2000 At June 30, 2000, the Series had
$212,232 of short-term investments (Cash and Cash Equivalents). It also
had $264,232 in Zero Coupon Treasuries with annual maturities providing
$32,000 in fiscal year 2001 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
$157,151 for the three months ended June 30, 2000. However, after
adjusting for Equity in Losses of Project Partnerships of $145,803 and the
changes in operating assets and liabilities, net cash used in operating
activities was $5,777. Cash provided by investing activities totaled
$8,045, consisting 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 increased from $48,979 for the three months ended June 30,
1999 to $96,387 as a result of lower occupancy rates in the three months
ending June 30, 2000 as compared to June 30, 1999. At June 30, 2000, the
Series had $227,814 of short-term investments (Cash and Cash Equivalents).
It also had $215,669 in Zero Coupon Treasuries with annual maturities
providing $25,000 in fiscal year 2001 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
$102,398 for the three months ended June 30, 2000. However, after
adjusting for Equity in Losses of Project Partnerships of $96,387 and the
changes in operating assets and liabilities, net cash used in operating
activities was $2,745. Cash provided by investing activities totaled
$4,489, consisting 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 for the three months ended June 30, 1999 were comparable for
the three months ended June 30, 2000. At June 30, 1999, the Series had
$229,070 of short-term investments (Cash and Cash Equivalents). It also
had $237,241 in Zero Coupon Treasuries with annual maturities providing
$26,000 in fiscal year 2001 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
$65,832 for the three months ended June 30, 2000. However, after adjusting
for Equity in Losses of Project Partnerships of $61,533 and the changes in
operating assets and liabilities, net cash used in operating activities was
$1,984. Cash provided by investing activities totaled $180, consisting of
cash distributions from 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 III LTD.
(A Florida Limited Partnership)
By: Raymond James Tax Credit Funds,Inc.
Date: 8/15/2000 By:/s/ Ronald M. Diner
Ronald M. Diner
President
Date: 8/15/2000 By:/s/ Sandra L. Furey
Sandra L. Furey
Secretary and Treasurer
