<PAGE>
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, 1995
Commission file number 0-18042
COMMUNITY INVESTMENT PARTNERS II, L.P.
_________________________________________________________________
(Exact name of registrant as specified in its charter)
MISSOURI 43-1609351
_________________________________________________________________
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
201 Progress Parkway
Maryland Heights, Missouri 63043
_________________________________________________________________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (314) 851-2000
_______________
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. (1) YES X NO
___ ___
(2) YES NO X
___
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COMMUNITY INVESTMENT PARTNERS II, L.P.
INDEX
Page Number
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheet .........................................3
Schedule of Portfolio Investments .....................4
Income Statement ......................................5
Statement of Cash Flows ...............................6
Statement of Changes in Partnership Capital ...........7
Notes to Financial Statements .........................8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations ...................9
Part II. OTHER INFORMATION *
Item 1. Legal Proceedings....................................10
Item 6. Exhibits and Reports on Form 8-K.....................10
Signatures............................................11
* Items 2,3,4 and 5 are omitted as they are not applicable
COMMUNITY INVESTMENT PARTNERS II, L.P.
BALANCE SHEET
(Unaudited)
September 30, December 31,
1995 1994
ASSETS
Investments $ 1,145,013 $ 1,000,013
Cash and cash equivalents 1,416,438 1,533,171
Deferred organizational costs, net 82,537 110,049
Accrued interest receivable 7,542 7,378
_____________ ____________
Total Assets $ 2,651,530 $ 2,650,611
=========== ===========
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LIABILITIES AND PARTNERSHIP CAPITAL
Liabilities:
Accrued expenses $ 32,739 $ 5,100
_____________ ____________
Total Liabilities 32,739 5,100
_____________ ____________
Partnership Capital:
Capital - Limited Partners 2,592,436 2,618,888
Capital - General Partners 26,355 26,623
_____________ ____________
Total Partnership Capital 2,618,791 2,645,511
_____________ ____________
Total Liabilities and
Partnership Capital $ 2,651,530 $ 2,650,611
=========== ===========
The accompanying notes are an integral part of these financial
statements.
COMMUNITY INVESTMENT PARTNERS II, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF SEPTEMBER 30, 1995
Company/ Nature of Business/ Fair Market
Initial Investment Date Investment Cost Value
Houghton Acquisition Organized for the purpose of
Corporation acquiring Hutchinson Foundry
Products Inc.
March 10, 1993 2,000 shares of Class A
cumulative redeemable
Preferred Stock $200,013 $200,013
West End Produces and distributes an all
Brokerage Company natural, brewed, non-alcoholic
beverage
July 31, 1995 96,301 shares of Class A
Common Stock 267,131 267,131
120,000 shares of Class B
6% Preferred Stock 332,869 332,869
Global Surgical Formed to acquire the Urban
Corporation Microscope Division and the
Surgical Mechanical Research
subsidiary of Storz Medical
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January 31, 1994 300 shares of Common
Stock 300,000 300,000
July 5, 1995 7% subordinated
Promissory Note 45,000 45,000
_________ _________
$1,145,013$1,145,013
========= =========
COMMUNITY INVESTMENT PARTNERS II, L.P.
INCOME STATEMENT
(Unaudited)
Three Months Ended Nine Months Ended
Sept.30, Sept.30, Sept.30, Sept.30,
1995 1994 1995 1994
Interest income $ 5,871 $ 12,706 $ 41,349 $ 26,955
Dividend income 7,453 - 14,818 -
_________ _________ _________ _________
Total Income 13,325 12,706 56,166 26,955
_________ _________ _________ _________
Legal fees 2,920 3,039 8,415 14,896
Managment fees 9,956 4,845 29,729 14,886
Amortization of deferred
organizational costs 9,171 9,170 27,512 27,512
Independent general partners'
fees 3,000 3,000 9,000 10,000
Professional fees - 1,350 7,000 5,963
Miscellaneous expense 569 1,556 1,220 2,994
_________ _________ _________ _________
Total Expenses 25,617 22,960 82,886 76,251
_________ _________ _________ _________
Net loss $(12,292) $(10,254) $(26,720) $(49,296)
======= ======= ======= =======
Per unit of Partnership interest:
Net loss $ (.11) $ (.09) $ (.24) $ (.44)
======= ======= ======= =======
Net asset value
(9/95 and 12/94) $ 23.27 $ 23.51
======= =======
Units Outstanding:
Limited Partners 111,410
General Partners 1,120
The accompanying notes are an integral part of these financial
statements.
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COMMUNITY INVESTMENT PARTNERS II, L.P.
STATEMENT OF CASH FLOWS
(Unaudited)
Nine Months Ended Sept.30,
1995 1994
CASH FLOWS USED BY OPERATING
ACTIVITIES:
Net loss $ (26,720) $ (49,296)
Adjustments to reconcile net income
to net
cash provided by operating activities -
Amortization of deferred organization
costs 27,512 27,512
Purchase of portfolio investments (145,000) (300,000)
Increase in accrued expenses 27,639 13,886
Increase in accrued interest receivable (165) (1,614)
_____________ _____________
Total cash used for
operating activities (116,734) (309,512)
_____________ _____________
CASH FLOWS PROVIDED BY FINANCING
ACTIVITIES:
Capital contribution - 1,376,625
_____________ _____________
Total cash provided by financing
activities - 1,376,625
_____________ _____________
Net increase (decrease) in cash (116,734) 1,067,113
CASH AND EQUIVALENTS,
beginning of year 1,533,171 706,646
_____________ _____________
CASH AND EQUIVALENTS, end of year $ 1,416,437 $ 1,773,759
=========== ===========
The accompanying notes are an integral part of these financial
statements.
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COMMUNITY INVESTMENT PARTNERS II, L.P.
STATEMENT OF CHANGES IN PARTNERSHIP CAPITAL
(Unaudited)
Nine Months Ended Sept.30, 1995, and 1994
Limited General
Partners Partners Totals
Balance December 31, 1993 $1,341,745 $ 13,486 $1,355,231
Capital contribution 1,362,625 14,000 1,376,625
Net income (loss) (48,803) (493) (49,296)
___________ _________ ___________
Balance September 30, 1994 $2,655,567 $ 26,993 $2,682,560
Balance December 31, 1994 2,618,888 26,623 2,645,511
Net income (loss) (26,452) (268) (26,720)
__________ ________ _________
Balance September 30, 1995 $ 2,592,436 $ 26,355 $2,618,791
The accompanying notes are an integral part of these financial
statements.
<PAGE>
COMMUNITY INVESTMENT PARTNERS II, L.P.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
BASIS OF PRESENTATION
Community Investment Partners II, L.P. (CIP II) is a limited
partnership which has elected to be a business development
company under the Investment Company Act of 1940, as amended. As
a business development company, the partnership is required to
invest at least 70% of its total assets in qualifying investments
as specified in the Investment Company Act. CIP Management, L.P.
(Management), a limited partnership, is the Managing General
Partner of CIP II. Management is responsible for making all
decisions regarding CIP II's investment portfolio. Management is
paid a fee equal to 1% of total assets for its services.
CIP II was formed May 8, 1992. The Partnership raised
$1,406,625 through a public offering of its units during
December, 1992. The Partnership executed a call to each partner
requesting the deposit of an amount equal to the initial capital
contribution on August 25, 1994.
All portfolio investments are carried at cost until
significant developments affecting an investment provide a basis
for revaluation. Thereafter, portfolio investments are carried
at fair value as obtained from outside sources or at a value
determined quarterly by the Managing General Partner under the
supervision of the Independent General Partners. Investments in
securities traded on a national securities exchange are valued at
the latest reported sales price on the last business day of the
period. If no sale has taken place, the securities are valued at
the last bid price. If no bid price has been reported, or if no
exchange quotation is available, the securities are valued at the
quotation obtained from an outside broker. Currently, market
value approximates cost for the investments of CIP II.
COMMUNITY INVESTMENT PARTNERS II, L.P.
MANAGEMENT'S FINANCIAL DISCUSSION
RESULTS OF OPERATIONS
Net loss for the three months ended September 30, 1995 was
$12,292 compared to $10,254 for the three months ended September
30, 1994. Income was derived from dividend and interest on
investment and cash balances. Expenses incurred were related to
amortization of dererred amortization cost, independent general
partners fees, management fees and legal fees.
The net loss for the nine months ended September 30, 1995, was
$26,720 compared to $49,296 for the nine months ended September
30, 1994. Income was derived from interest and dividends on
investments, and cash balances. Expenses incurred were related
to amortization of deferred organization costs, independent
general partners' fees, management fees and legal and
professional fees. As a result of the capital call in August,
1994, management fees have increased significantly. Management
fees are 1 1/2% of total assets.
Cash flows for the nine months ended September 30, 1995,
resulted from operating activities. Cash flows were provided
primarily from increased accrued expenses and accrued interest
receivable. Cash flows were used to purchase a portfolio
investment.
FINANCIAL CONDITION
See Schedule of Portfolio Investments, page 4.
On April 21, 1995, CIP II invested an additional $100,000 in
West End Soda Brew L.P.
On July 5, 1995, CIP II invested an additional $45,000 in
Global Surgical Corporation.
On July 31, 1995, West End Soda Brew, L.P. formed a
corporation to be known as West End Beverage Company. The
limited partnership interest was converted to 96,301 shares of
Class A Common Stock and 120,000 shares of Class B 6% Preferred
Stock.
LIQUIDITY AND CAPITAL RESOURCES
The partnership's total capital of $2,618,791 as of September
30, 1995, consisted of $2,592,436 in limited partner capital and
$26,355 in general partner capital. Net loss was allocated to
the limited partners in the amount of $26,452 and to the general
partners in the amount of $268.
The partnership intends to invest its cash balances in U.S.
Government securities, investment grade state and municipal
bonds, certificates of deposit at banks with at least $25 million
in assets, or investment grade money market securities sold by
banks. At September 30, 1995, $1,400,000 has been invested in
bank certificates of deposit and the balance is invested in
overnight repurchase agreements.
COMMUNITY INVESTMENT PARTNERS II, L.P.
Item 1: Legal Proceedings
The partnership is not a party to any material pending legal
proceedings.
Item 6: Exhibits and Reports on Form 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
No reports were filed on Form 8-K for the quarter ended
September 30, 1995.
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.
COMMUNITY INVESTMENT PARTNERS II, L.P.
By: CIP Management, L.P., Managing General Partner
By: CIP Management, inc., Its Managing General Partner
/s/Daniel A. Burkhardt President, Treasurer
_______________________ and Director
Daniel A. Burkhardt November 10, 1995
/s/Ray L. Robbins Vice-President
_______________________ and Director November 10, 1995
Ray L. Robbins
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.
COMMUNITY INVESTMENT PARTNERS II, L.P.
By: CIP Management, L.P., Managing General Partner
By: CIP Management, inc., Its Managing General Partner
President, Treasurer
_______________________ and Director
Daniel A. Burkhardt November 10, 1995
Vice-President
_______________________ and Director November 10, 1995
Ray L. Robbins
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements for Community Investment Partners, II, L.P. for the
quarter ended September 30, 1995 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
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<NAME> COMMUNITY INVESTMENT PARTNERS II, L.P.
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