<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 March 31, 1998
----------------------
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
of incorporation or organization) Identification No.)
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 March 31, 1998 and December 31, 1997, Statements of Income
for the three months ended March 31, 1998 and 1997, Statements of Cash Flows for
the three months ended March 31, 1998 and 1997.
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 March 31, 1998 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>
March 31, December 31,
1998 1997
------------ ------------
<S> <C> <C>
Assets
Cash $ 43,163 $ 75,651
Investment In Unimproved Land 4,171,953 4,128,000
------------ ------------
Total Assets $ 4,215,116 $ 4,203,651
============ ============
Liabilities and Partners Capital
Accounts Payable and Accrued
Liabilities $ 0 $ 1,900
Due to Affiliates 203 963
Property Taxes Payable 138,782 124,047
Notes Payable (Note 3) 190,000 190,000
Commission Payable (Note 4) 70,560 70,560
Franchise Tax Payable 0 800
------------ ------------
Total Liabilities 399,545 388,270
Partners' Capital
General Partners (37,561) (37,562)
Limited Partners 8,500 equity
units authorized and outstanding 3,853,132 3,852,943
------------ ------------
Total Partners Capital 3,815,571 3,815,381
Total Liabilities and Partners' Capital $ 4,215,116 $ 4,203,651
============ ============
</TABLE>
<PAGE> 4
TMP INLAND EMPIRE IV, LTD.
A California Limited Partnership
STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
---------------------------
March 31 March 31
1998 1997
-------- --------
<S> <C> <C>
Land Sales $ 0 $ 0
Cost of Land Sales $ 0 $ 0
-------------------------
Gross Profit $ 0 $ 0
Interest and Other Income $1,012 $ 221
-------------------------
Amortization $ 0 $ 0
-------------------------
Net Income $ 189 $ 221
-------------------------
Allocation of Net Income (Loss)
(Note 2)
General Partners $ 1 $ 2
Limited Partners $ 188 $ 219
Limited Partners. Per unit $ 0.01 $ 0.03
</TABLE>
<PAGE> 5
TMP INLAND EMPIRE IV, LTD.
A California Limited Partnership
STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
March 31, 1998 March 31, 1997
-------------- --------------
<S> <C> <C>
Operating Activities:
Net Income (Loss) $ 189 $ 221
Amortization 0 0
Increase (Decrease) in Receivables 0
Increase (Decrease) in Prepaid Expense 0
Increase (Decrease) in Accounts Payable
and Accrued Liabilities (3,460) 30,669
Increase (Decrease) in Taxes Payable 14,735
Net Cash Provided by (Used In)
Operating Activities
Investing Activities:
Net Cash Provided by (Used In)
Investing Activities (43,952) (41,987)
Financing Activities
Net Cash Provided by (Used In) 0
Financing Activities
Increase (Decrease) In Cash $(32,488) $(11,097)
-------- --------
Beginning Cash $ 75,651 $ 32,971
Ending Cash $ 43,163 $ 21,874
-------- --------
</TABLE>
<PAGE> 6
TMP INLAND EMPIRE IV, LTD
a California Limited Partnership
Notes to the Financial Statements
For the Three Months Ended March 31, 1998
(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 1997.
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 March 31, 1998 and 1997, 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 March 31, 1998 and 1997, 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 March 31, 1998 and 1997, 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 March 31, 1998 is as follows:
1995 $ 42,365
1996 27,711
1997 35,456
1998 33,250
--------
138,782
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 Three Months Ended March 31, 1998
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Partnership revenues during the three month periods ended March 31, 1998 and
1997 consisted primarily of interest income. There were no properties sold
during the first quarters of 1998 and 1997. There was one property sold during
the second quarter of 1997.
Investing Activities used approximately $44,000 for the three months ended March
31, 1998 and $42,000 for the three months ended March 31, 1997, mainly for
carrying costs of the land held for investment.
The Partnership had six properties as of March 31, 1998 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: May 12, 1998
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
<PAGE> 10
EXHIBIT INDEX
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 43,163
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 4,171,953
<CURRENT-ASSETS> 4,215,116
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 4,215,116
<CURRENT-LIABILITIES> 399,545
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 3,815,571
<TOTAL-LIABILITY-AND-EQUITY> 4,215,116
<SALES> 0
<TOTAL-REVENUES> 1,012
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 823
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 189
<INCOME-TAX> 0
<INCOME-CONTINUING> 189
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 189
<EPS-PRIMARY> 0.01
<EPS-DILUTED> 0.01
</TABLE>
