UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------------
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
---
EXCHANGE ACT OF 1934
For the quarterly period ended September 29, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
---
EXCHANGE ACT OF 1934
For the transition period from to ____________
-----------------
Commission file number: 0-24600
American Tax Credit Trust, a Delaware statutory business trust
Series I
(Exact name of Registrant as specified in its charter)
Delaware 06-6385350
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Richman American Credit Corp.
599 West Putnam Avenue, 3rd Floor
Greenwich, Connecticut 06830
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (203) 869-0900
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 filing requirements
for the past 90 days. Yes X No .
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT TRUST,
a Delaware statutory business trust
Series I
Part I - FINANCIAL INFORMATION
Item 1. Financial Statements
Table of Contents Page
<S> <C>
Balance Sheets as of September 29, 1996 (Unaudited) and March 30, 1996
(Unaudited)
Statements of Operations for the three and six month periods ended September 29,
1996 (Unaudited) and September 29, 1995 (Unaudited)
Statements of Cash Flows for the six months ended September 29, 1996 (Unaudited)
and September 29, 1995 (Unaudited)
Notes to Financial Statements as of September 29, 1996 (Unaudited)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT TRUST,
a Delaware statutory business trust
Series I
BALANCE SHEETS
SEPTEMBER 29, 1996 AND MARCH 30, 1996
(UNAUDITED)
September 29, March 30,
Notes 1996 1996
----- ------------------- ------------
<S> <C> <C> <C>
ASSETS
Cash and cash equivalents $ 566,349 $ 569,008
Restricted cash 3 1,547,876 2,000,256
Investments in bonds available-for-sale 2 842,008 859,032
Investment in local partnerships 3 13,550,428 13,957,764
Interest receivable 13,566 12,752
Organization costs (less accumulated amortization of $42,500
and $35,000) 32,500 40,000
--------------- ---------------
$ 16,552,727 $ 17,438,812
============ ============
LIABILITIES AND OWNERS' EQUITY (DEFICIT)
Liabilities
Accounts payable and accrued expenses $ 14,657 $ 31,048
Payable to manager 240,690 193,515
Capital contributions payable 3 1,518,233 1,972,883
Interest payable 29,643 27,373
--------------- ---------------
1,803,223 2,224,819
-------------- --------------
Owners' equity (deficit)
Manager (15,790) (11,298)
Beneficial owners, $1,000 stated value per unit (18,654 units of
beneficial ownership interest outstanding) 14,824,975 15,269,704
Unrealized loss on investments in bonds available-for-sale, net 2 (59,681) (44,413)
------------- ------------
14,749,504 15,213,993
------------- -------------
$ 16,552,727 $ 17,438,812
============ ============
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT TRUST,
a Delaware statutory business trust
Series I
STATEMENTS OF OPERATIONS
THREE AND SIX MONTH PERIODS ENDED SEPTEMBER 29, 1996 AND 1995
(UNAUDITED)
Three Months Six Months Three Months Six Months
Ended Ended Ended Ended
September 29, September 29, September 29, September 29,
1996 1996 1995 1995
<S> <C> <C> <C> <C>
REVENUE
Interest $ 42,422 $ 84,477 $ 78,230 $ 147,599
---------------- ---------------- ---------------- --------------
TOTAL REVENUE 42,422 84,477 78,230 147,599
----------------- ----------------- ----------------- ---------------
EXPENSES
Management fee 48,587 97,175 50,858 98,314
Professional fees 5,522 15,766 5,390 11,752
Printing, postage and other 2,163 5,921 6,742 14,111
Amortization 3,750 7,500 3,750 7,500
----------------- ----------------- -------------- ----------------
TOTAL EXPENSES 60,022 126,362 66,740 131,677
---------------- --------------- ---------------- ---------------
Income (loss) from operations (17,600) (41,885) 11,490 15,922
Equity in loss of investment in local
partnerships 3 (249,610) (407,336) (59,429) (133,826)
--------------- --------------- -------------- ---------------
NET LOSS $ (267,210) $ (449,221) $ (47,939) $ (117,904)
============== ============== ============== ==============
NET LOSS ATTRIBUTABLE TO
Manager $ (2,672) $ (4,492) $ (479) $ (1,179)
Beneficial owners (264,538) (444,729) (47,460) (116,725)
--------------- --------------- -------------- ---------------
$ (267,210) $ (449,221) $ (47,939) $ (117,904)
============== ============== ============= ==============
NET LOSS per unit of beneficial ownership
interest (18,654 units of beneficial
ownership interest) $ (14.18) $ (23.84) $ (2.54) $ (6.26)
================ ================ =============== ================
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT TRUST,
a Delaware statutory business trust
Series I
STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED SEPTEMBER 29, 1996 AND 1995
(UNAUDITED)
1996 1995
-------------------- ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received $ 87,689 $ 184,472
Cash paid for
management fee (50,000) (50,000)
professional fees (30,016) (1,341)
printing, postage and other expenses (8,062) (14,112)
---------------- ---------------
Net cash provided by (used in) operating activities (389) 119,019
---------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in local partnerships (454,650) (401,812)
Transfer from restricted cash 452,380 432,044
Maturity/redemption of bonds 1,099,922
------------ -------------
Net cash provided by (used in) investing activities (2,270) 1,130,154
--------------- -------------
Net increase (decrease) in cash and cash equivalents (2,659) 1,249,173
Cash and cash equivalents at beginning of period 569,008 190,909
--------------- --------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 566,349 $ 1,440,082
============== =============
SIGNIFICANT NON-CASH INVESTING ACTIVITIES
Unrealized loss on investments in bonds available-for-sale, net $ (15,268) $ (403)
============== ================
Increase in capital contributions payable $ 1,146,102
===============
- - ----------------------------------------------------------------------------------------------------------------------
See reconciliation of net loss to net cash provided by (used in) operating
activities on page 6.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT TRUST,
a Delaware statutory business trust
Series I
STATEMENTS OF CASH FLOWS - (Continued)
SIX MONTHS ENDED SEPTEMBER 29, 1996 AND 1995
(UNAUDITED)
1996 1995
------------------ -----------
<S> <C> <C>
RECONCILIATION OF NET LOSS TO NET CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES
Net loss $ (449,221) $ (117,904)
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities
Equity in loss of investment in local partnerships 407,336 133,826
Amortization of organization costs 7,500 7,500
Amortization of net premium on investments in bonds 1,756
Accretion of zero coupon bonds 18,793
Increase (decrease) in accounts payable and accrued expenses (16,391) 10,410
Increase in interest receivable (814)
Increase in payable to manager 47,175 48,314
Increase in interest payable 2,270 18,080
--------------- --------------
NET CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES $ (389) $ 119,019
============== ============
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT TRUST,
a Delaware statutory business trust
Series I
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 29, 1996
(UNAUDITED)
1. Basis of Presentation
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information. They do not include all information and footnotes
required by generally accepted accounting principles for complete financial
statements. The results of operations are impacted significantly by the
combined results of operations of the Local Partnerships, which are
provided by the Local Partnerships on an unaudited basis during interim
periods. Accordingly, the accompanying financial statements are dependent
on such unaudited information. In the opinion of the Manager, the financial
statements include all adjustments necessary to present fairly the
financial position as of September 29, 1996 and the results of operations
and cash flows for the interim periods presented. All adjustments are of a
normal recurring nature. The results of operations for the three and six
month periods ended September 29, 1996 are not necessarily indicative of
the results that may be expected for the entire year.
Certain reclassifications of amounts have been made to conform to the
current period presentation.
2. Investments in Bonds Available-For-Sale
As of September 29, 1996, certain information concerning investments in
bonds available-for-sale is as follows:
Gross unrealized Gross
Amortized gains unrealized Estimated
cost losses fair value
<S> <C> <C> <C>
Description and maturity
Corporate debt securities
After five years through ten years $ 220,395 $ -- $ (13,168) $ 207,227
After ten years 681,294 -- (46,513) 634,781
------------- ------------------ ------------- ------------
$ 901,689 $ -- $ (59,681) $ 842,008
============= ================== ============ ===========
</TABLE>
3. Investment in Local Partnerships
The Trust owns a 98.9%-99% limited partnership interest in ten Local
Partnerships representing capital contributions in the aggregate amount of
$14,985,339, of which the Trust has paid $13,467,106 and $1,518,233 are
outstanding as of September 29, 1996. Restricted cash in the accompanying
balance sheet as of September 29, 1996 includes such outstanding capital
contributions. The outstanding capital contributions are payable in
installments upon each Local Partnerships' satisfaction of specified
conditions related to construction and/or operations. In accordance with
the limited partnership agreements of the Local Partnerships, the final
determination of the capital contribution obligations to be paid by the
Trust to the Local Partnerships may be adjusted if the actual Low-income
Tax Credit of a Local Partnership is greater than or less than the expected
Low-income Tax Credit of such Local Partnership, among other things, at the
time of acquisition. As of June 30, 1996, the Local Partnerships have
outstanding mortgage and
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT TRUST,
a Delaware statutory business trust
Series I
NOTES TO FINANCIAL STATEMENTS - (Continued)
SEPTEMBER 29, 1996
(UNAUDITED)
3. Investment in Local Partnerships (continued)
construction loans payable totaling approximately $22,853,000 (exclusive of
unutilized construction loan commitments for properties under construction of
approximately $709,000) and accrued interest payable on such loans totaling
approximately $437,000, which are secured by security interests and liens common
to mortgage and construction loans on the Local Partnerships' real property and
other assets.
For the six months ended September 29, 1996, the investment in Local
Partnerships activity consists of the following:
<S> <C> <C>
Investment in Local Partnerships as of March 30, 1996 $ 13,957,764
Equity in loss of investment in Local Partnerships for
the three months ended
March 31, 1996 $ (157,726)
June 30, 1996 (249,610) (407,336)
------------- --------------
Investment in Local Partnerships as of September 29, 1996 $ 13,550,428
============
</TABLE>
The combined unaudited balance sheets of the Local Partnerships as of June
30, 1996 and December 31, 1995 and the combined unaudited statements of
operations of the Local Partnerships for the three and six month periods
ended June 30, 1996 and 1995 are reflected on pages 9 and 10, respectively.
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT TRUST,
a Delaware statutory business trust
Series I
NOTES TO FINANCIAL STATEMENTS - (Continued)
SEPTEMBER 29, 1996
(UNAUDITED)
3. Investment in Local Partnerships (continued)
The combined balance sheets of the Local Partnerships as of June 30, 1996
and December 31, 1995 are as follows:
<S> <C> <C> <C>
June 30, December 31,
1996 1995
------------------ -----------
ASSETS
Cash and other investments $ 405,957 $ 421,620
Rental receivable 24,677 35,109
Capital contributions receivable 1,714,807 3,682,589
Escrow deposits and reserves 1,220,198 741,861
Land 705,354 705,354
Buildings and improvements (net of accumulated
depreciation of $2,037,440 and $1,460,998) 34,607,007 28,978,299
Construction in progress 4,480,748
Intangible assets (net of accumulated amortization of
$46,237 and $32,957) 277,693 287,682
Other 164,228 157,584
--------------- ---------------
$ 39,119,921 $ 39,490,846
============ ============
LIABILITIES AND PARTNERS' EQUITY
Liabilities
Accounts payable and accrued expenses $ 412,442 $ 264,732
Due to related parties 1,229,803 2,962,620
Mortgage and construction loans 22,853,294 21,265,697
Note payable 100,000 100,000
Accrued interest 437,133 365,850
Other 494,131 527,271
-------------- --------------
25,526,803 25,486,170
------------- -------------
Partners' equity
American Tax Credit Trust, Series I
Capital contributions, net of distributions
(includes receivable of $1,518,233 and $3,486,015) 14,982,339 14,982,339
Cumulative loss (1,431,911) (1,024,575)
------------- -------------
13,550,428 13,957,764
------------- -------------
General partners and other limited partners
Capital contributions, net of distributions
(includes receivable of $196,574) 284,586 284,586
Cumulative loss (241,896) (237,674)
-------------- --------------
42,690 46,912
-------------- ------------
13,593,118 14,004,676
------------- -------------
$39,119,921 $ 39,490,846
=========== ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT TRUST,
a Delaware statutory business trust
Series I
NOTES TO FINANCIAL STATEMENTS - (Continued)
SEPTEMBER 29, 1996
(UNAUDITED)
3. Investment in Local Partnerships (continued)
The combined statements of operations of the Local Partnerships for the
three and six month periods ended June 30, 1996 and 1995 are as follows:
<S> <C> <C> <C> <C>
Three Months Six Months Ended Three Months Six Months Ended
Ended June 30, June 30, Ended June 30, June 30,
1996 1996 1995 1995
----------------------------------------------------------------------
REVENUE
Rental $ 849,525 $ 1,662,771 $ 500,862 $ 941,475
Interest and other 15,712 37,324 4,807 45,182
----------------- ----------------- ----------------- -----------------
Total Revenue 865,237 1,700,095 505,669 986,657
---------------- --------------- --------------- ----------------
EXPENSES
Administrative 154,803 295,157 89,006 179,824
Utilities 107,297 211,622 50,356 115,007
Operating, maintenance and other 170,218 314,687 72,881 143,205
Taxes and insurance 142,758 238,831 80,277 164,265
Interest (including amortization of
$6,247, $13,280, $2,742 and $5,486) 241,005 474,914 109,223 191,943
Depreciation 301,355 576,442 163,987 327,674
---------------- ---------------- --------------- ----------------
Total Expenses 1,117,436 2,111,653 565,730 1,121,918
--------------- --------------- --------------- ---------------
NET LOSS $ (252,199) $ (411,558) $ (60,061) $ (135,261)
============== ============== ============== ==============
NET LOSS ATTRIBUTABLE TO
American Tax Credit Trust, Series I $ (249,610) $ (407,336) $ (59,429) $ (133,826)
General partners and other limited
partners (2,589) (4,222) (632) (1,435)
----------------- ----------------- ----------------- -----------------
$ (252,199) $ (411,558) $ (60,061) $ (135,261)
============== ============== =============== ==============
</TABLE>
The combined results of operations of the Local Partnerships for the three
and six month periods ended June 30, 1996 are not necessarily indicative of
the results that may be expected for an entire operating period.
<PAGE>
4. Additional Information
Additional information, including the audited March 30, 1996 Financial
Statements and the Organization, Purpose and Summary of Significant
Accounting Policies, is included in the Trust's Annual Report on Form 10-K
for the fiscal year ended March 30, 1996 on file with the Securities and
Exchange Commission.
<PAGE>
AMERICAN TAX CREDIT TRUST,
a Delaware statutory business trust
Series I
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Material Changes in Financial Condition
As of September 29, 1996, Registrant has not experienced a significant change in
financial condition as compared to March 30, 1996. Principal changes in assets
are comprised of periodic transactions and adjustments and anticipated equity in
loss from operations of the Local Partnerships and payments of capital
contributions to the Local Partnerships. During the six months ended September
29, 1996, Registrant received cash from interest earnings and utilized cash for
normal operating expenses and for capital contributions payable to Local
Partnerships. In addition, during the six months ended September 29, 1996,
Registrant recorded a net unrealized loss on bonds available-for-sale of
approximately $15,000, resulting in a net unrealized loss of approximately
$60,000 reflected in Registrant's owners' equity (deficit) as of September 29,
1996. During the six months ended September 29, 1996, the investment in Local
Partnerships decreased as a result of Registrant's equity in the Local
Partnerships' net loss for the six months ended June 30, 1996 of $407,336.
The Properties are principally comprised of subsidized and leveraged low-income
multifamily residential complexes located throughout the United States. The
rents of the Properties, several of which receive rental subsidy payments,
including payments under Section 8 of Title II of the Housing and Community
Development Act of 1974 ("Section 8"), are subject to specific laws, regulations
and agreements with federal and state agencies. The subsidy agreements expire at
various times during and after the Compliance Periods of the Local Partnerships.
Registrant cannot reasonably predict legislative initiatives and governmental
budget negotiations, the outcome of which could result in a reduction in funds
available for the various federal and state administered housing programs
including the Section 8 program. Such changes could adversely affect the future
net operating income and debt structure of any or all Local Partnerships
currently receiving such subsidy or similar subsidies. One Local Partnership's
Section 8 contract, which covers certain rental units, is scheduled to expire in
1997 after being extended for one year. In addition, the Local Partnerships have
various financing structures which include (i) required debt service payments
("Mandatory Debt Service") and (ii) debt service payments which are payable only
from available cash flow subject to the terms and conditions of the notes, which
may be subject to specific laws, regulations and agreements with appropriate
federal and state agencies ("Non-Mandatory Debt Service or Interest"). In the
event rents are not sufficient to cover operating expenses and Mandatory Debt
Service requirements and other charges, the Local General Partners are obligated
to provide advances to cover deficits for a certain period of time up to certain
amounts (the "Deficit Guarantee"). A Local General Partner's funding of such
Deficit Guarantee is dependent on its liquidity or ability to borrow the
required funds. During the six months ended June 30, 1996, revenue from
operations, Local General Partner advances and reserves of the Local
Partnerships have generally been sufficient to cover the operating expenses and
Mandatory Debt Service. As of June 30, 1996, all but one of the Local
Partnerships have achieved full operational status with the one remaining Local
Partnership having completed construction and full rent-up during June 1996. The
Local Partnerships are effectively operating at or near breakeven levels,
although certain Local Partnerships' accounting information reflects operating
deficits that do not represent cash deficits due to their mortgage and financing
structure and the required deferral of property management fees. As discussed
below, certain Local Partnerships' operating information indicates below break
even operations after taking into account their mortgage and financing structure
and the required deferral of property management fees.
The terms of the partnership agreement of Penn Apartment Associates (the "Penn
Apartment Local Partnership") require the Local General Partner of the Penn
Apartment Local Partnership to advance funds to cover operating deficits up to
$100,000 through February 1999. As of June 30, 1996, the Local General Partner
of the Penn Apartment Local Partnership has advanced approximately $8,000. In
addition, the Local General Partner of the Penn Apartment Local Partnership is
required to cause the management agent to defer property management fees in
order to avoid a default under the mortgage. The mortgage does not require any
Mandatory Debt Service payments during the Compliance Period. The Penn Apartment
Local Partnership incurred an operating deficit for the six months ended June
30, 1996 of approximately $7,000 which includes property management fees of
approximately $3,000. Accordingly, the net operating deficit was approximately
$4,000. Of Registrant's total annual Low-income Tax Credits, approximately 8.58%
is allocated from the Penn Apartment Local Partnership.
The terms of the partnership agreement of Edgewood Manor Associates, L.P. (the
"Edgewood Manor Local Partnership") require the Local General Partners of the
Edgewood Manor Local Partnership to advance funds to cover operating deficits up
to $300,000 through November 1996. As of June 30, 1996, the Local General
Partners of the Edgewood Manor Local Partnership have advanced approximately
$27,000. In addition, the Local General Partners of the Edgewood Manor Local
Partnership are required to cause the management agent to defer property
management fees in order to avoid a default under the mortgage. The Edgewood
Manor Local Partnership incurred an operating deficit for the six months ended
June 30, 1996 of approximately $33,000 which includes property management fees
of approximately $6,000. Accordingly, the net operating deficit was
approximately $27,000. Of Registrant's total annual Low-income Tax Credits,
approximately 19.61% is allocated from the Edgewood Manor Apartments Local
Partnership.
Results of Operations
Registrant's operating results are dependent upon the operating results of the
Local Partnerships and are significantly impacted by the Local Partnerships'
policies. In addition, the operating results herein are not necessarily the same
for tax reporting. Registrant accounts for its investments in Local Partnerships
in accordance with the equity method of accounting and Emerging Issues Task
Force ("EITF") Issue No. 94-1, "Accounting for Tax Benefits Resulting from
Investments in Affordable Housing Projects." Under the equity method of
accounting and in accordance with EITF Issue No. 94-1, the investment is carried
at cost which includes capital contributions payable, and is adjusted for
Registrant's share of the Local Partnership's results of operations and by any
cash distributions received. Equity in loss of each investment in Local
Partnership allocated to Registrant is recognized to the extent of Registrant's
investment balance in each Local Partnership. Any equity in loss in excess of
Registrant's investment balance in a Local Partnership is allocated to other
partners' capital in each such Local Partnership. As a result, the equity in
loss of investment in Local Partnerships is expected to decrease as Registrant's
investment balances in the respective Local Partnerships become zero.
Three Months Ended September 29, 1996
For the three months ended September 29, 1996, Registrant had a net loss of
approximately $267,000, which included an equity in loss of investment in Local
Partnerships of approximately $250,000 for the three months ended June 30, 1996.
Registrant's loss from operations for the three months ended September 29, 1996
of approximately $17,000 was attributable to interest revenue of approximately
$43,000, exceeded by operating expenses of approximately $56,000 and
amortization of organization costs of approximately $4,000. Interest income for
future periods is expected to decline as Temporary Investments are utilized to
make payments of capital contributions to Local Partnerships.
The Local Partnerships' net loss of approximately $252,000 for the three months
ended June 30, 1996 was attributable to rental and other revenue of
approximately $865,000, exceeded by operating and interest expenses (including
Non-Mandatory Interest) of approximately $809,000 and approximately $308,000 of
depreciation and amortization expenses. As a result of ongoing development and
construction, one Local Partnership completed construction and initial rent-up
during June 1996.
Three Months Ended September 29, 1995
For the three months ended September 29, 1995, Registrant had a net loss of
approximately $48,000, which included an equity in loss of investment in Local
Partnerships of approximately $59,000 for the three months ended June 30, 1995.
Registrant's income from operations for the three months ended September 29,
1995 of approximately $11,000 was attributable to interest revenue of
approximately $78,000, offset by operating expenses of approximately $63,000 and
amortization of organization costs of approximately $4,000.
The Local Partnerships' net loss of approximately $60,000 for the three months
ended June 30, 1995 was attributable to rental and other revenue of
approximately $506,000, exceeded by operating and interest expenses (including
Non-Mandatory Interest) of approximately $399,000 and approximately $167,000 of
depreciation and amortization expenses. As a result of ongoing development,
construction and initial rent-up, certain Local Partnerships had not experienced
full operations as of June 30, 1995. In addition, Registrant had not utilized
all net proceeds for acquiring Local Partnership interests as of June 30, 1995.
Six Months Ended September 29, 1996
For the six months ended September 29, 1996, Registrant had a net loss of
approximately $449,000, which included an equity in loss of investment in Local
Partnerships of approximately $407,000 for the six months ended June 30, 1996.
Registrant's loss from operations for the six months ended September 29, 1996 of
approximately $42,000 was attributable to interest revenue of approximately
$84,000, exceeded by operating expenses of approximately $118,000 and
amortization of organization costs of approximately $8,000. Interest income for
future periods is expected to decline as Temporary Investments are utilized to
make payments of capital contributions to Local Partnerships.
The Local Partnerships' net loss of approximately $412,000 for the six months
ended June 30, 1996 was attributable to rental and other revenue of
approximately $1,700,000, exceeded by operating and interest expenses (including
Non-Mandatory Interest) of approximately $1,522,000 and approximately $590,000
of depreciation and amortization expenses. As a result of ongoing development
and construction, one Local Partnership completed construction and initial
rent-up during June 1996.
Six Months Ended September 29, 1995
For the six months ended September 29, 1995, Registrant had a net loss of
approximately $118,000, which included an equity in loss of investment in Local
Partnerships of approximately $134,000 for the six months ended June 30, 1995.
Registrant's income from operations for the six months ended September 29, 1995
of approximately $16,000 was attributable to interest revenue of approximately
$148,000, offset by operating expenses of approximately $124,000 and
amortization of organization costs of approximately $8,000.
The Local Partnerships' net loss of approximately $135,000 for the six months
ended June 30, 1995 was attributable to rental and other revenue of
approximately $987,000, exceeded by operating and interest expenses (including
Non-Mandatory Interest) of approximately $789,000 and approximately $333,000 of
depreciation and amortization expenses. As a result of ongoing development,
construction and initial rent-up, certain Local Partnerships had not experienced
full operations as of June 30, 1995. In addition, Registrant had not utilized
all net proceeds for acquiring Local Partnership interests as of June 30, 1995.
Three and Six Month Periods Ended September 29, 1996 versus
Three and Six Month Periods Ended September 29, 1995
Registrant's operations for the three months ended September 29, 1996 resulted
in a net loss of approximately $267,000 as compared to a net loss of
approximately $48,000 for the same period in 1995. The increase in net loss is
primarily attributable to an increase in equity in loss of investment in Local
Partnerships of approximately $190,000 and a decrease in interest revenue of
approximately $36,000. The increase in equity in loss of investment in Local
Partnerships is a result of more Local Partnerships achieving full operations
and the acquisition of two Local Partnership interests subsequent to June 30,
1995. Interest revenue declined primarily as a result of Registrant's
utilization of Temporary Investments to pay capital contributions to Local
Partnerships.
Registrant's operations for the six months ended September 29, 1996 resulted in
a net loss of approximately $449,000 as compared to a net loss of approximately
$118,000 for the same period in 1995. The increase in net loss is primarily
attributable to an increase in equity in loss of investment in Local
Partnerships of approximately $274,000 and a decrease in interest revenue of
approximately $63,000. The increase in equity in loss of investment in Local
Partnerships is a result of more Local Partnerships achieving full operations
and the acquisition of two Local Partnership interests subsequent to June 30,
1995. Interest revenue declined primarily as a result of Registrant's
utilization of Temporary Investments to pay capital contributions to Local
Partnerships.
<PAGE>
AMERICAN TAX CREDIT TRUST,
a Delaware statutory business trust
Series I
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
None
<PAGE>
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.
AMERICAN TAX CREDIT TRUST,
a Delaware statutory business trust,
Series I
By: Richman American Credit Corp.,
The Manager
Dated: November 13, 1996 /s/ Richard Paul Richman
----------------- -------------------------
Richard Paul Richman
President, Chief Executive
Officer and Director of the Manager
Dated: November 13, 1996 /s/ Neal Ludeke
----------------- ----------------
Neal Ludeke
Vice President and
Treasurer of the Manager
(Principal Financial and Accounting
Officer of Registrant)
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<LEGEND> This schedule contains summary financial information extracted from
the quarter ended September 29, 1996 Form 10Q Balance Sheets and
Statements of Operations and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
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<NAME> ATC Trust
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<PERIOD-END> SEP-29-1996
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0
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