<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of
The Securities Exchange Act of 1934
for the Quarterly Period ended September 30, 1997
----------------------
Commission File No. 0-19933
TMP INLAND EMPIRE IV, LTD.
A CALIFORNIA LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
CALIFORNIA 33-0341829
(State or other jurisdiction I.R.S.Employer Identification No.)
of incorporation or organization)
801 North Parkcenter Drive, Suite 235 92705
Santa Ana, California (Zip Code)
(Address of principal executive office)
(714) 836-5503
(Registrant's telephone number, including area code)
----------------------
Indicate by check mark whether Registrant has [1] 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 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 [ ]
<PAGE> 2
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
The following financial statements are filed as a part of this Form 10-Q:
Balance Sheets as of September 30, 1997 and December 31, 1996, Statements of
Income for the three and nine months ended September 30, 1997 and 1996,
Statements of Cash Flows for the nine months ended September 30, 1997, and 1996.
The accompanying unaudited interim financial statements include all adjustments
(consisting solely of normal recurring adjustments) which are, in the opinion of
management, necessary to fairly present the financial position of the
Partnership as of September 30, 1997 and the results of its operations, changes
in partners' equity, and cash flows for the periods then ended.
<PAGE> 3
TMP INLAND EMPIRE IV, LTD.
A California Limited Partnership
Balance Sheets
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
----------- -----------
<S> <C> <C>
Assets
Cash $ 93,570 $ 32,971
Investment In Unimproved Land 2,301,340 2,440,000
----------- -----------
Total Assets $ 2,394,910 $ 2,472,971
=========== ===========
Liabilities and Partners Capital
Accounts Payable and Accrued
Liabilities $ 1,900 $ --
Due to Affiliates 400 405
Property Taxes Payable 105,532 69,417
Notes Payable (Note 3) 190,000 190,000
Commission Payable (Note 4) 70,560 70,560
Franchise Tax Payable 0 800
----------- -----------
Total Liabilities 368,392 331,182
Partners' Capital
General Partners (54,296) (54,298)
Limited Partners 8,500 equity
units authorized and outstanding 2,080,814 2,196,087
----------- -----------
Total Partners Capital 2,026,518 2,141,789
Total Liabilities and $ 2,394,910 $ 2,472,971
=========== ===========
Partners' Capital
</TABLE>
<PAGE> 4
TMP INLAND EMPIRE IV, LTD.
A California Limited Partnership
Statements of Income
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------ ------------------------
Sept 30 Sept 30 Sept 30 Sept 30
1997 1996 1997 1996
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Land Sales $ 0 $ 0 $ 127,000 $ 0
Cost of Land Sales $ (1,400) $ 0 $ 243,555 $ 0
------------------------ ------------------------
Gross Profit $ 1,400 $ 0 $(116,555) $ 0
Interest and Other Income $ 569 $ 267 $ 1,283 $ 975
------------------------ ------------------------
Amortization $ 0 $ 554 $ 0 $ 1,654
------------------------ ------------------------
Net Income $ 1,969 $ (287) $(115,272) $ (679)
------------------------ ------------------------
Allocation of Net Income (Loss)
(Note 2)
General Partners $ 20 $ (3) $ (1,153) $ (7)
Limited Partners $ 1,949 $ (284) $(114,119) $ (672)
Limited Partners. per unit $ 0.23 $ (0.03) $ (13.43) $ (0.08)
</TABLE>
<PAGE> 5
TMP INLAND EMPIRE IV, LTD.
A California Limited Partnership
Statement of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Nine Months
Ended Ended
Sept 30, 1997 Sept 30, 1996
<S> <C> <C>
Operating Activities:
Net Income (Loss) $(115,272) $ (679)
Amortization 0 1,654
Increase (Decrease) in Receivables 0 (50)
Increase (Decrease) in Prepaid Expense 0 (5,700)
Increase (Decrease) in Accounts Payable
and Accrued Liabilities 1,895 (603)
Increase (Decrease) in Taxes Payable 35,316 (64,933)
Net Cash Provided by (Used In)
Operating Activities (78,061) (70,311)
Investing Activities:
Net Cash Provided by (Used In)
Investing Activities 138,660 (92,137)
Financing Activities
Net Cash Provided by (Used In) 0 190,000
Financing Activities
Increase (Decrease) In Cash $ 60,599 $ 27,552
--------- ---------
Beginning Cash $ 32,971 $ 16,769
Ending Cash $ 93,570 $ 44,321
--------- ---------
</TABLE>
<PAGE> 6
TMP INLAND EMPIRE IV, LTD
a California Limited Partnership
Notes to the Financial Statements
For the Nine Months Ended September 30, 1997
(Unaudited)
NOTE 1 - Summary of Significant Accounting Policies
Accounting Method - TMP Inland Empire IV, Ltd. (the Partnership) prepares its
financial statements on the accrual basis of accounting.
Organization Costs - Organization costs include expenses incurred in the
formation of the Partnership that have been capitalized and that have been
amortized over a period of 40 years prior to 1992 and are being amortized over
five years beginning in 1992. These organization costs have been completely
amortized as of 1996.
Investment in Unimproved Land - The Partnership's land is stated at the lower of
actual cost or market value, based on specific identification. All costs
associated with the acquisition of a property are capitalized. In addition, the
Partnership capitalizes all carrying costs.
Income Taxes - The entity is treated as a partnership for income tax purposes
and any income or loss is passed through and taxable at the partner level.
Accordingly, no provision for federal income taxes is provided.
NOTE 2 - Allocation of Profits, Losses and Cash Distributions
Profits, losses, and cash distributions are allocated 99 percent to the limited
partners and one percent to the general partners until the limited partners have
received an amount equal to their capital contributions plus a cumulative,
non-compounded return of six percent per annum based on their adjusted capital
account balances. At that point, remaining profits, losses and cash
distributions are allocated 85 percent to the limited partners and 15 percent to
the general partners.
As of September 30, 1997 and 1996, profits, losses and cash distributions were
allocated 99 percent to the limited partners and one percent to the general
partners.
<PAGE> 7
NOTE 3 - Note Payable
As of September 30, 1997 and 1996, the Partnership had a note payable secured by
Partnership land. The note bears interest at 12 percent per annum and matures
February 1, 1999.
NOTE 4 - Commissions Payable
As of September 30, 1997 and 1996, the Partnership had a payable to a related
party for services rendered relating to sales of properties in 1989 and 1990.
NOTE 5 - Property Taxes Payable
Property taxes payable as of September 30, 1997 is as follows:
<TABLE>
<S> <C>
1995 $ 42,365
1996 27,711
1997 35,456
--------
Total $105,532
</TABLE>
If property taxes remain delinquent for five years, then the County can
foreclose on the property. Management plans to take necessary steps to prevent
foreclosures.
<PAGE> 8
TMP INLAND EMPIRE IV, LTD.
a California Limited Partnership
For the Nine Months Ended September 30, 1997
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Partnership revenues during the three and nine month periods ended September 30,
1996 consisted primarily of interest income. There were no properties sold
during the first three quarters of 1996. Partnership revenues during the nine
month period ended September 30, 1997 consisted primarily of the sale of
property and interest income. The property sale occurred during the second
quarter of 1997.
Operating activities for the nine months ended September 30, 1997 used
approximately $78,000 of cash, mainly from the sale of a parcel of land at a
loss. Operating activities for the nine months ended September 30, 1996 used
approximately $70,000 of cash - the bulk of that resulted in the payment of
previously accrued property taxes. Investing Activities provided approximately
$139,000 for the nine months ended September 30, 1997, mainly from the sale of
property. The Partnership used approximately $92,000 for the nine months ended
September 30, 1996, mainly for carrying costs of the land held for investment.
Financing activities for the nine months ended September 30, 1996 provided
$190,000 from a note secured by Partnership land.
The Partnership had six properties as of September 30, 1997 that are being held
for appreciation and resale. Upon the sale of each property, the Partnership
intends to distribute the sales proceeds, less any reserves needed for
operations, to the partners.
Management believes that the Partnership has sufficient cash to meet the
anticipated cash requirements of the Partnership for the next twelve months.
<PAGE> 9
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: November 18, 1997
TMP INLAND EMPIRE IV, LTD.
a California Limited Partnership
By: TMP Investments, Inc., as General Partner
By: \s\ William O. Passo
---------------------------------------
William O. Passo, President
By: \s\ Anthony W. Thompson
---------------------------------------
Anthony W. Thompson, Exec. V.P.
By: TMP Properties, a California General
Partnership as General Partner
By: \s\ William O. Passo
---------------------------------------
William O. Passo, General Partner
By: \s\ Anthony W. Thompson
---------------------------------------
Anthony W. Thompson, General Partner
By: \s\ Scott E. McDaniel
---------------------------------------
Scott E. McDaniel
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 93,570
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 2,301,340
<CURRENT-ASSETS> 2,394,910
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,394,910
<CURRENT-LIABILITIES> 368,392
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,026,518
<TOTAL-LIABILITY-AND-EQUITY> 2,394,910
<SALES> 569
<TOTAL-REVENUES> 569
<CGS> (1,400)
<TOTAL-COSTS> (1,400)
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,969
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,969
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
