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 December 30, 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
<S> <C>
Balance Sheets as of December 30, 1996 (Unaudited) and March 30, 1996 (Unaudited)
Statements of Operations for the three and nine month periods ended December 30,
1996 (Unaudited)and December 30, 1995 (Unaudited)
Statements of Cash Flows for the nine months ended December 30, 1996 (Unaudited)
and December 30, 1995 (Unaudited)
Notes to Financial Statements as of December 30, 1996 (Unaudited)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT TRUST,
a Delaware statutory business trust
Series I
BALANCE SHEETS
DECEMBER 30, 1996 AND MARCH 30, 1996
(UNAUDITED)
December 30, March 30,
Notes 1996 1996
----- ------------------- ------------
<S> <C> <C> <C>
ASSETS
Cash and cash equivalents $ 588,030 $ 569,008
Restricted cash 3 1,314,738 2,000,256
Investments in bonds available-for-sale 2 858,546 859,032
Investment in local partnerships 3 13,234,869 13,957,764
Interest receivable 13,694 12,752
Organization costs (less accumulated amortization of $46,250
and $35,000) 28,750 40,000
---------------- ----------------
$ 16,038,627 $ 17,438,812
============ ============
LIABILITIES AND OWNERS' EQUITY (DEFICIT)
Liabilities
Accounts payable and accrued expenses $ 16,499 $ 31,048
Payable to manager 264,277 193,515
Capital contributions payable 3 1,283,233 1,972,883
Interest payable 31,505 27,373
---------------- ----------------
1,595,514 2,224,819
-------------- --------------
Owners' equity (deficit)
Manager (19,028) (11,298)
Beneficial owners (18,654 units of beneficial ownership interest
outstanding) 14,504,406 15,269,704
Unrealized loss on investments in bonds available-for-sale, net 2 (42,265) (44,413)
--------------- ---------------
14,443,113 15,213,993
------------- -------------
$ 16,038,627 $ 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 NINE MONTH PERIODS ENDED DECEMBER 30, 1996 AND 1995
(UNAUDITED)
Three Months Nine Months Three Months Nine Months
Ended December Ended December Ended December Ended December
30, 30, 30, 30,
Notes 1996 1996 1995 1995
----- -------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
REVENUE
Interest $ 38,447 $ 122,924 $ 64,874 $ 212,473
--------------- --------------- ---------------- --------------
TOTAL REVENUE 38,447 122,924 64,874 212,473
---------------- ---------------- ----------------- ---------------
EXPENSES
Management fee 48,587 145,762 48,590 146,904
Professional fees 2,000 17,766 5,900 17,652
Printing, postage and other 6,473 12,394 5,244 19,355
Amortization 3,750 11,250 3,750 11,250
----------------- ----------------- ----------------- ----------------
TOTAL EXPENSES 60,810 187,172 63,484 195,161
---------------- ---------------- ---------------- ---------------
Income (loss) from operations (22,363) (64,248) 1,390 17,312
Equity in loss of investment in local
partnerships 3 (301,444) (708,780) (168,228) (302,054)
--------------- --------------- --------------- ---------------
NET LOSS $ (323,807) $ (773,028) $ (166,838) $ (284,742)
============== ============== ============== ==============
NET LOSS ATTRIBUTABLE TO
Manager $ (3,238) $ (7,730) $ (1,668) $ (2,847)
Beneficial owners (320,569) (765,298) (165,170) (281,895)
--------------- --------------- --------------- ---------------
$ (323,807) $ (773,028) $ (166,838) $ (284,742)
============== ============== ============== ==============
NET LOSS per unit of beneficial ownership
interest (18,654 units of beneficial
ownership interest) $ (17.19) $ (41.03) $ (8.85) $ (15.11)
================ ================ ================ ================
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT TRUST,
a Delaware statutory business trust
Series I
STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED DECEMBER 30, 1996 AND 1995
(UNAUDITED)
1996 1995
-------------------- ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received $ 128,748 $ 253,736
Cash paid for
management fee (75,000) (75,000)
professional fees (30,017) (22,158)
printing, postage and other expenses (14,692) (19,355)
--------------- ---------------
Net cash provided by operating activities 9,039 137,223
----------------- ---------------
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in local partnerships (675,535) (1,652,087)
Transfer from restricted cash 685,518 1,676,277
Maturity/redemption of bonds 1,099,922
Cash distribution from a local partnership 3,000
--------------------- -----------------
Net cash provided by investing activities 9,983 1,127,112
----------------- --------------
Net increase in cash and cash equivalents 19,022 1,264,335
Cash and cash equivalents at beginning of period 569,008 190,909
--------------- ---------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 588,030 $ 1,455,244
============== =============
SIGNIFICANT NON-CASH INVESTING ACTIVITIES
Unrealized gain (loss) on investments in bonds available-for-sale, net $ 2,148 $ (403)
================ ================
Increase (decrease) in capital contributions payable $ (14,115) $ 869,327
- ----------------------------------------------------------------------------------------------------------------------
See reconciliation of net loss to net cash provided by 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)
NINE MONTHS ENDED DECEMBER 30, 1996 AND 1995
(UNAUDITED)
1996 1995
------------------ -----------
<S> <C> <C>
RECONCILIATION OF NET LOSS TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Net loss $ (773,028) $ (284,742)
Adjustments to reconcile net loss to net cash provided by
operating activities
Equity in loss of investment in local partnerships 708,780 302,054
Amortization of organization costs 11,250 11,250
Amortization of net premium on investments in bonds 2,634 18,793
Decrease in accounts payable and accrued expenses (14,549) (4,506)
Increase in interest receivable (942) (1,652)
Increase in payable to manager 70,762 71,904
Increase in interest payable 4,132 24,122
-------------- --------------
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 9,039 $ 137,223
============= ============
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT TRUST,
a Delaware statutory business trust
Series I
NOTES TO FINANCIAL STATEMENTS
DECEMBER 30, 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 December 30, 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 nine
month periods ended December 30, 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 December 30, 1996, certain information concerning investments in
bonds available-for-sale is as follows:
Gross unrealized Gross
Amortized gains unrealized Estimated
Description and maturity cost losses fair value
<S> <C> <C> <C> <C>
Corporate debt securities
After five years through ten years $ 220,444 $ -- $ (8,955) $ 211,489
After ten years 680,367 -- (33,310) 647,057
------------- ------------------ ------------- --------------
$ 900,811 $ -- $ (42,265) $ 858,546
============ ================= ============ =============
</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
$14,971,224, of which the Trust has paid $13,687,991 and $1,283,233 are
outstanding as of December 30, 1996. Restricted cash in the accompanying
balance sheet as of December 30, 1996 includes such outstanding capital
contributions. The outstanding capital contributions are payable in
installments upon each Local Partnership's 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 September 30, 1996, the Local Partnerships have
outstanding mortgage and construction loans payable totaling approximately
$23,382,000 and accrued interest payable on such loans totaling
approximately $498,000, which are secured by security interests and liens
common to mortgage and construction loans on the Local Partnerships' real
property and other assets.
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT TRUST,
a Delaware statutory business trust
Series I
NOTES TO FINANCIAL STATEMENTS - (Continued)
DECEMBER 30, 1996
(UNAUDITED)
3. Investment in Local Partnerships (continued)
For the nine months ended December 30, 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
Decrease in investment in a Local Partnership during the
three months ended December 30, 1996 (14,115)
Equity in loss of investment in Local Partnerships for the
three months ended
March 31, 1996 $ (157,726)
June 30, 1996 (249,610)
September 30, 1996 (301,444) (708,780)
------------- --------------
Investment in Local Partnerships as of December 30, 1996 $ 13,234,869
============
</TABLE>
The combined unaudited balance sheets of the Local Partnerships as of
September 30, 1996 and December 31, 1995 and the combined unaudited
statements of operations of the Local Partnerships for the three and nine
month periods ended September 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)
DECEMBER 30, 1996
(UNAUDITED)
3. Investment in Local Partnerships (continued)
The combined balance sheets of the Local Partnerships as of September 30,
1996 and December 31, 1995 are as follows:
<S> <C> <C> <C>
September 30, December 31,
1996 1995
------------------ -----------
ASSETS
Cash and other investments $ 409,580 $ 421,620
Rental receivable 21,633 35,109
Capital contributions receivable 1,518,233 3,682,589
Escrow deposits and reserves 1,281,663 741,861
Land 705,354 705,354
Buildings and improvements (net of accumulated
depreciation of $2,349,862 and $1,460,998) 34,358,809 28,978,299
Construction in progress 4,480,748
Intangible assets (net of accumulated amortization of
$54,705 and $32,957) 269,225 287,682
Other 183,990 157,584
--------------- ---------------
$ 38,748,487 $ 39,490,846
============ ============
LIABILITIES AND PARTNERS' EQUITY
Liabilities
Accounts payable and accrued expenses $ 491,118 $ 264,732
Due to related parties 732,224 2,197,386
Mortgage and construction loans 23,381,651 22,030,931
Note payable 100,000 100,000
Accrued interest 497,826 365,850
Other 257,060 527,271
--------------- ---------------
25,459,879 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 (1,733,355) (1,024,575)
------------- -------------
13,248,984 13,957,764
------------- -------------
General partners and other limited partners
Capital contributions, net of distributions
(includes receivable of $196,574 at December 31, 284,586 284,586
1995)
Cumulative loss (244,962) (237,674)
-------------- --------------
39,624 46,912
--------------- ----------------
13,288,608 14,004,676
------------- -------------
$ 38,748,487 $ 39,490,846
============ ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT TRUST,
a Delaware statutory business trust
Series I
NOTES TO FINANCIAL STATEMENTS - (Continued)
DECEMBER 30, 1996
(UNAUDITED)
3. Investment in Local Partnerships (continued)
The combined statements of operations of the Local Partnerships for the
three and nine month periods ended September 30, 1996 and 1995 are as
follows:
<S> <C> <C> <C> <C>
Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended
September September September September
30, 30, 30, 30,
1996 1996 1995 1995
----------------------------------------------------------------------------
REVENUE
Rental $ 897,540 $ 2,560,311 $ 758,063 $ 1,699,538
Interest and other 21,807 59,131 18,545 63,727
----------------- ----------------- ---------------- -----------------
TOTAL REVENUE 919,347 2,619,442 776,608 1,763,265
---------------- --------------- --------------- ---------------
EXPENSES
Administrative 187,137 482,294 145,378 325,202
Utilities 77,235 288,857 64,694 179,701
Operating, maintenance and other 206,095 520,782 145,254 288,459
Taxes and insurance 199,755 438,586 126,055 290,320
Interest (including amortization of
$8,468, $21,748, $3,723 and $9,209) 241,213 716,127 254,419 446,362
Depreciation 312,422 888,864 210,776 538,450
---------------- ---------------- --------------- ----------------
TOTAL EXPENSES 1,223,857 3,335,510 946,576 2,068,494
--------------- --------------- --------------- ---------------
NET LOSS $ (304,510) $ (716,068) $ (169,968) $ (305,229)
============== ============== ============== ==============
NET LOSS ATTRIBUTABLE TO
American Tax Credit Trust, Series I $ (301,444) $ (708,780) $ (168,228) $ (302,054)
General partners and other limited
partners (3,066) (7,288) (1,740) (3,175)
----------------- ----------------- ----------------- -----------------
$ (304,510) $ (716,068) $ (169,968) $ (305,229)
============== ============== ============== ==============
</TABLE>
The combined results of operations of the Local Partnerships for the three
and nine month periods ended September 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 December 30, 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 nine months ended December
30, 1996, Registrant received cash from interest earnings and utilized cash for
operating expenses and for capital contributions to Local Partnerships. In
addition, during the nine months ended December 30, 1996, Registrant recorded a
net unrealized gain on bonds available-for-sale of approximately $2,000,
resulting in a net unrealized loss of approximately $42,000 reflected in
Registrant's owners' equity (deficit) as of December 30, 1996. During the nine
months ended December 30, 1996, the investment in Local Partnerships decreased
as a result of Registrant's equity in the Local Partnerships' net loss for the
nine months ended September 30, 1996 of $708,780 and a decrease in investment in
a Local Partnership of $14,115.
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 nine months ended September 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 September 30, 1996, all of the Local Partnerships
have achieved full operational status and substantially all of 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. However, 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 and 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 of approximately $9,000 for the nine months ended September 30, 1996
which includes property management fees of approximately $5,000.
<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 (continued)
Accordingly, the net operating deficit was approximately $4,000. As of September
30, 1996, the Local General Partner of the Penn Apartment Local Partnership has
advanced approximately $8,000. 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 and 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 of approximately
$22,000 for the nine months ended September 30, 1996 which includes property
management fees of approximately $10,000. Accordingly, the net operating deficit
was approximately $12,000. As of September 30, 1996, the Local General Partners
of the Edgewood Manor Local Partnership have advanced approximately $24,000. Of
Registrant's total annual Low-income Tax Credits, approximately 19.61% is
allocated from the Edgewood Manor 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 investment 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 December 30, 1996
For the three months ended December 30, 1996, Registrant had a net loss of
approximately $324,000, which included an equity in loss of investment in Local
Partnerships of approximately $302,000 for the three months ended September 30,
1996. Registrant's loss from operations for the three months ended December 30,
1996 of approximately $22,000 was attributable to interest revenue of
approximately $39,000, exceeded by operating expenses of approximately $57,000
and amortization of organization costs of approximately $4,000. Interest revenue
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 $305,000 for the three months
ended September 30, 1996 was attributable to rental and other revenue of
approximately $919,000, exceeded by operating and interest expenses (including
Non-Mandatory Interest) of approximately $903,000 and approximately $321,000 of
depreciation and amortization expenses.
Three Months Ended December 30, 1995
For the three months ended December 30, 1995, Registrant had a net loss of
approximately $167,000, which included an equity in loss of investment in Local
Partnerships of approximately $168,000 for the three months ended September 30,
1995. Registrant's income from operations for the three months ended December
30, 1995 of approximately $1,000 was
<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 (continued)
attributable to interest revenue of approximately $65,000, offset by operating
expenses of approximately $60,000 and amortization of organization costs of
approximately $4,000.
The Local Partnerships' net loss of approximately $170,000 for the three months
ended September 30, 1995 was attributable to rental and other revenue of
approximately $777,000, exceeded by operating and interest expenses (including
Non-Mandatory Interest) of approximately $732,000 and approximately $215,000 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 September 30, 1995.
Nine Months Ended December 30, 1996
For the nine months ended December 30, 1996, Registrant had a net loss of
approximately $773,000, which included an equity in loss of investment in Local
Partnerships of approximately $709,000 for the nine months ended September 30,
1996. Registrant's loss from operations for the nine months ended December 30,
1996 of approximately $64,000 was attributable to interest revenue of
approximately $123,000, exceeded by operating expenses of approximately $176,000
and amortization of organization costs of approximately $11,000. Interest
revenue 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 $716,000 for the nine months
ended September 30, 1996 was attributable to rental and other revenue of
approximately $2,620,000, exceeded by operating and interest expenses (including
Non-Mandatory Interest) of approximately $2,425,000 and approximately $911,000
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.
Nine Months Ended December 30, 1995.
For the nine months ended December 30, 1995, Registrant had a net loss of
approximately $285,000, which included an equity in loss of investment in Local
Partnerships of approximately $302,000 for the nine months ended September 30,
1995. Registrant's income from operations for the nine months ended December 30,
1995 of approximately $17,000 was attributable to interest revenue of
approximately $212,000, offset by operating expenses of approximately $184,000
and amortization of organization costs of approximately $11,000.
The Local Partnerships' net loss of approximately $305,000 for the nine months
ended September 30, 1995 was attributable to rental and other revenue of
approximately $1,763,000, exceeded by operating and interest expenses (including
Non-Mandatory Interest) of approximately $1,521,000 and approximately $547,000
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 September 30, 1995.
Three and Nine Month Periods Ended December 30, 1996 v.
Three and Nine Month Periods Ended December 30, 1995
Registrant's operations for the three months ended December 30, 1996 resulted in
a net loss of approximately $324,000 as compared to a net loss of approximately
$167,000 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 $133,000 and a decrease in interest revenue of
approximately $26,000. 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 during the third calendar
quarter of 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
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations (continued)
Registrant's operations for the nine months ended December 30, 1996 resulted in
a net loss of approximately $773,000 as compared to a net loss of approximately
$285,000 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 $407,000 and a decrease in interest revenue of
approximately $90,000. 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 during the third calendar
quarter of 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.,
Manager
Dated: February 12, 1997 /s/ Richard Paul Richman
----------------- -------------------------
Richard Paul Richman
President, Chief Executive
Officer and Director of the Manager
Dated: February 12, 1997 /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.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> This schedule contains summary financial information extracted from
the quarter ended December 30, 1996 Form 10Q Balance Sheets and Statements of
Operations and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<CIK> 0000897315
<NAME> American Tax Credit Trust
<MULTIPLIER> 1,000
<CURRENCY> 0
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-30-1997
<PERIOD-START> MAR-31-1996
<PERIOD-END> DEC-30-1996
<EXCHANGE-RATE> 0
<CASH> 588
<SECURITIES> 859
<RECEIVABLES> 14
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 16,039
<CURRENT-LIABILITIES> 1,596
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 16,039
<SALES> 0
<TOTAL-REVENUES> 123
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 187
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (773)
<INCOME-TAX> 0
<INCOME-CONTINUING> (773)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (773)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
