August 13, 1996
Securities and Exchange Commission
Filer Support, Edgar
Operation Center, Stop 0-7
6432 General Green Way
Alexandria, VA 22312
Boston Financial Tax Credit Fund VIII, A Limited Partnership
Report on Form 10-Q for Quarter Ended June 30, 1996
File No. 0-26522
Gentlemen:
Pursuant to the requirements of Rule 901(d) of Regulation S-T, enclosed is one
copy of subject report.
Very truly yours,
/s/ Marie D. Reynolds
Marie D. Reynolds
Assistant Controller
TC8-Q1.DOC
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)of the Securities Exchange Act of 1934
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 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
For Quarter Ended June 30, 1996 Commission file number 0-26522
Boston Financial Tax Credit Fund VIII, A Limited Partnership
(Exact name of registrant as specified in its charter)
Massachusetts 04-3205879
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
101 Arch Street, Boston, Massachusetts 02110-1106
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 439-3911
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. Yes X No .
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Balance Sheets - June 30, 1996 (Unaudited)
and March 31, 1996 1
Statements of Operations (Unaudited) - For the Three
Months Ended June 30, 1996 and 1995 2
Statement of Changes in Partners' Equity (Deficiency) (Unaudited) -
For the Three Months Ended June 30, 1996 3
Statements of Cash Flows (Unaudited) - For the Three
Months Ended June 30, 1996 and 1995 4
Notes to Financial Statements (Unaudited) 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II - OTHER INFORMATION
Items 1-6 10
SIGNATURE 11
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, March 31,
1996 1996
(Unaudited)
Assets
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 102,025 $ 71,715
Other current assets 20,804 33,038
-------------- ------------
Total current assets 122,829 104,753
Investments in Local Limited Partnerships (Note 2) 28,301,699 26,064,146
Restricted cash 484,201 1,369,364
Marketable securities, at fair value (Note 1) 2,073,119 3,709,881
Organization costs, net of accumulated
amortization of $23,333 and $20,833
as of June 30 and March 31, 1996, respectively 26,667 29,167
-------------- ------------
Total Assets $ 31,008,515 $ 31,277,311
============== ============
Liabilities and Partners' Equity
Current liabilities:
Accounts payable to affiliate $ 67,220 $67,175
Accrued expenses 59,332 35,184
-------------- ------------
Total current liabilities 126,552 102,359
-------------- ------------
Commitments (Note 3)
General, Initial and Investor Limited Partners' Equity 30,891,747 31,175,486
Net unrealized losses on marketable securities (9,784) (534)
-------------- ------------
Total Partners' Equity 30,881,963 31,174,952
-------------- ------------
Total Liabilities and Partners' Equity $ 31,008,515 $ 31,277,311
============== ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months Ended June 30, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
--------------- ---------
Revenue:
<S> <C> <C>
Investment $ 1,886 $ 194,420
Other 16,734 150
------------ ---------
Total Revenue 18,620 194,570
------------ ---------
Expenses:
Asset management fees, related party 48,071 46,853
General and administrative (includes reimbursements
to an affiliate in the amounts of $31,685 and
$26,093 in 1996 and 1995, respectively) 70,091 49,528
Amortization 9,987 5,144
------------ ---------
Total Expenses 128,149 101,525
------------ ---------
Income (loss) before equity in income (losses)
of Local Limited Partnerships (109,529) 93,045
Equity in income (losses) of Local Limited Partnerships (174,210) 8,891
------------ ---------
Net Income (Loss) $ (283,739) $ 101,936
============ =========
Net Income (Loss) allocated
To General Partners $ (2,837) $ 1,019
To Limited Partners (280,902) 100,917
------------ ---------
$ (283,739) $ 101,936
============ =========
Net Income (Loss) per Limited Partnership Unit
(36,947 Units) $ (7.60) $ 2.73
=========== ===========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
(Unaudited)
For the Three Months Ended June 30, 1996
<TABLE>
<CAPTION>
Initial Investor Net
General Limited Limited Unrealized
Partners Partners Partners Losses Total
<S> <C> <C> <C> <C> <C>
Balance at March 31, 1996 $ (4,592) $ 100 $ 31,179,978 $ (534) $ 31,174,952
Net change in unrealized losses
on marketable securities
available for sale - - - (9,250) (9,250)
Net Loss (2,837) - (280,902) - (283,739)
-------- -------- ----------- -------- -------------
Balance at June 30, 1996 $ (7,429) $ 100 $ 30,899,076 $ (9,784) $ 30,881,963
======== ======== ============ ======== =============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
(Unaudited)
For the Three Months Ended June 30, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
-------------- ----------
<S> <C> <C>
Net cash used for operating activities $ (64,003) $ (80,693)
------------ ------------
Cash flows from investing activities:
Investment in Local Limited Partnerships (2,422,771) (1,009,075)
Restricted cash 885,163 -
Cash distributions received from
Local Limited Partnerships 4,409 -
Purchases of marketable securities (3,424,134) (1,250,085)
Proceeds from sales and maturities of
marketable securities 5,051,646 1,430,000
Payment of acquisition expenses - (64,919)
------------ ------------
Net cash provided by (used for) investing activities 94,313 (894,079)
------------ ------------
Cash flows from financing activities:
Refund of organizational and offering expenses - 6,332
------------ ------------
Net cash provided by financing activities - 6,332
------------ ------------
Net increase (decrease) in cash and cash equivalents 30,310 (968,440)
Cash and cash equivalents, beginning of period 71,715 10,495,010
------------ ------------
Cash and cash equivalents, end of period $ 102,025 $ 9,526,570
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
Notes to Financial Statements (Unaudited)
11
The unaudited financial statements presented herein have been prepared in
accordance with the instructions to Form 10-Q and do not include all of the
information and note disclosures required by generally accepted accounting
principles. These statements should be read in conjunction with the financial
statements and notes thereto included with the Partnership's 10-K for the year
ended March 31, 1996. In the opinion of management, these financial statements
include all adjustments, consisting only of normal recurring adjustments,
necessary to present fairly the Partnership's financial position and results of
operations. The results of operations for the periods may not be indicative of
the results to be expected for the year. Certain reclassifications have been
made to prior period financial statements to conform to current period
classifications.
1. Marketable Securities
A summary of marketable securities is as follows:
<TABLE>
<CAPTION>
Gross Gross
Unrealized Unrealized Fair
Cost Gains Losses Value
<S> <C> <C> <C> <C>
Debt securities issued by the
US Treasury and
other US government
corporations and agencies $ 1,340,232 $ - $ (9,784) $ 1,330,448
Other debt securities 742,671 - - 742,671
----------- ----------- ----------- -----------
Marketable securities
at June 30, 1996 $ 2,082,903 $ - $ (9,784) $ 2,073,119
=========== =========== =========== ===========
Debt securities issued by the
US Treasury $ 1,465,038 $ 195 $ (2,839) $ 1,462,394
Other debt securities 2,245,377 2,500 (390) 2,247,487
----------- ----------- ----------- -----------
Marketable securities
at March 31, 1996 $ 3,710,415 $ 2,695 $ (3,229) $ 3,709,881
=========== =========== =========== ===========
</TABLE>
The contractual maturities at June 30, 1996 are as follows:
<TABLE>
<CAPTION>
Fair
Cost Value
<S> <C> <C>
Due in one year or less $ 1,144,546 $ 1,143,107
Due in one year to five years 938,357 930,012
------------ -----------
$ 2,082,903 $ 2,073,119
============ ===========
</TABLE>
Actual maturities may differ from contractual maturities because some borrowers
have the right to call or prepay obligations. Proceeds from the sales of fixed
maturities were approximately $5,052,000 for the three months ended June 30,
1996. Included in investment income are gross gains of $41,574 and $12,994 for
the three months ended June 30, 1996 and 1995, respectively.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
Notes to Financial Statements (Unaudited) (continued)
2. Investments in Local Limited Partnerships
The Fund has acquired an interest in ten Local Limited Partnerships which own
and operate multi-family housing complexes. The Fund, as Investor Limited
Partner, pursuant to the Local Limited Partnership Agreements, has generally
acquired a 99% interest in the profits, losses, tax credits and cash flows from
operations of the Local Limited Partnerships, with the exception of Springwood,
Hemlock Ridge and West End Place, which are 79.20%, 77% and 90%, respectively.
An affiliate of the General Partner owns the remaining 19.80% Limited Partner
interest in Springwood. Upon dissolution, proceeds will be distributed according
to the partnership agreements.
The following is a summary of Investments in Local Limited Partnerships:
<TABLE>
<CAPTION>
June 30,
1996
<S> <C>
(Unaudited)
Capital Contributions paid to Local Limited
Partnerships $ 28,519,644
Cumulative equity in losses of Local Limited Partnerships (1,216,918)
Cumulative cash distributions received from Local
Limited Partnerships (17,732)
Investment in Local Limited Partnerships before adjustments 27,284,994
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,048,010
Accumulated amortization of acquisition fees and expenses (31,305)
-------------
Investment in Local Limited Partnerships $ 28,301,699
=============
</TABLE>
Summarized financial information as of March 31, 1996 (due to the Funds policy
of reporting the financial information of its Local Limited Partnership
interests on a 90 day lag basis), of the ten Local Limited Partnerships in which
the Fund was invested as of that date is as follows:
Summarized Balance Sheets - March 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Assets:
Investment property, net $ 69,871,143
Current assets 3,036,880
Other assets 2,729,658
-------------
Total Assets $ 75,637,681
=============
Liabilities and Partners' Equity:
Long-term debt $ 38,189,150
Current liabilities 9,172,823
Other liabilities 1,380,475
-------------
Total Liabilities 48,742,448
Partners' Equity 26,895,233
-------------
Total Liabilities and Partners' Equity $ 75,637,681
=============
</TABLE>
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
Notes to Financial Statements (Unaudited) (continued)
2. Investments in Local Limited Partnerships (continued)
Summarized Income Statements (Unaudited) - For
the Three Months Ended March 31, 1996
<TABLE>
<CAPTION>
<S> <C>
Rental and other income $ 1,928,485
-------------
Expenses:
Operating 837,883
Interest 644,191
Depreciation and amortization 638,267
-------------
Total Expenses 2,120,341
Net Loss $ (191,856)
==============
Partnership's share of net loss $ (174,210)
=============
Other Partners' share of net loss $ (17,646)
=============
</TABLE>
3. Commitments
At June 30, 1996, the Fund has committed to make future capital contributions
and pay future purchase price installments on its investments in Local Limited
Partnerships. These future payments are contingent upon the achievement of
certain criteria as set forth in the Local Limited Partnership Agreement and
total approximately $857,000.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
At June 30, 1996, the Fund had cash and cash equivalents of $102,025 as compared
to $71,715 at March 31, 1996. This increase is primarily attributable to
proceeds from the sale of marketable securities, offset by cash paid for
investments in Local Limited Partnerships, purchase of marketable securities,
and net cash used for operations.
The Fund had restricted cash of $484,201 at June 30, 1996 as compared to
$1,369,364 at March 31, 1996. The decrease is the result of capital
contributions made to one of the Local Limited Partnerships in which the Fund
has invested.
As of June 30, 1996, approximately $1,649,000 of marketable securities has been
designated as reserves. The reserves are established to be used for working
capital of the Fund and contingencies related to the ownership of Local Limited
Partnership interests. Management believes that the interest income earned on
reserves, along with cash distributions received from Local Limited
Partnerships, to the extent available, will be sufficient to fund the Fund's
ongoing operations. Reserves may be used to fund operating deficits, if the
Managing General Partner deems funding appropriate.
At June 30, 1996, the Fund has committed to make future capital contributions
and pay future purchase price installments on its investments in Local Limited
Partnerships. These future payments are contingent upon the achievement of
certain criteria as set forth in the Local Limited Partnership Agreement and
total approximately $857,000.
Since the Fund invests as a limited partner, the Fund has no contractual duty to
provide additional funds to Local Limited Partnerships beyond its specified
investment. Thus, as of June 30, 1996, the Fund had no contractual or other
obligation to any Local Limited Partnership, which had not been paid or provided
for, except as disclosed above.
In the event a Local Limited Partnership encounters operating difficulties
requiring additional funds, the Fund might deem it in its best interest to
voluntarily provide such funds, in order to protect its investment. No such
event has occurred to date.
Cash Distributions
No cash distributions were made during the three months ended June 30, 1996.
Results of Operations
1996 versus 1995
For the three months ended June 30, 1996, the Fund's operations resulted in a
net loss of $283,739, as compared to net income of $101,936 for the three months
ended June 30, 1995. The change to a net loss position is primarily attributable
to an increase in equity in losses of Local Limited Partnerships and a decrease
in investment income.
The change in equity in losses of Local Limited Partnerships for the three
months ended June 30, 1996, as compared to the same period in 1995, is primarily
attributable to an increase in the number of operational Local Limited
Partnerships from five as of June, 1995 to ten as of June, 1996. Since many of
the properties were under construction during the three months ended June 30,
1995, the results of operations are not indicative of the results to be expected
for the future, nor are they comparable.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations (continued)
The decline in investment income is due primarily to lower average cash
balances, as a result of the Fund's investment in Local Limited Partnerships.
Property Discussions
The Fund is invested in ten Local Limited Partnerships which own ten properties
located in eight states. Two properties, representing 356 units, underwent
rehabilitation, and eight properties, representing 1001 units, are new
construction.
Each of the ten properties are complete, through initial lease-up and operating
as expected.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
PART II OTHER INFORMATION
Items 1-5 Not applicable
Item 6 Exhibits and reports on Form 8-K
(a) Exhibits - None
(b) Reports on Form 8-K - No reports on Form 8-K were filed
during the quarter ended June 30, 1996.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
SIGNATURE
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.
DATED: August 13, 1996 BOSTON FINANCIAL TAX CREDIT FUND VIII,
A LIMITED PARTNERSHIP
By: Arch Street VIII Limited Partnership,
its General Partner
/s/Georgia Murray
Georgia Murray
A Managing Director, Treasurer
and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> JUN-30-1996
<CASH> 102,025
<SECURITIES> 2,073,119
<RECEIVABLES> 000
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 20,804
<PP&E> 000
<DEPRECIATION> 000
<TOTAL-ASSETS> 31,008,515<F1>
<CURRENT-LIABILITIES> 126,552
<BONDS> 000
000
000
<COMMON> 000
<OTHER-SE> 30,881,963
<TOTAL-LIABILITY-AND-EQUITY> 31,008,515
<SALES> 000
<TOTAL-REVENUES> 18,620<F2>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 128,149<F3>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 000
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> (283,739)<F4>
<EPS-PRIMARY> (7.60)
<EPS-DILUTED> 000
<FN>
<F1>Included in total assets: Investments in Local Limited Partnerships $28,301,699, Restricted cash $484,201,
Organizational costs, net $26,667
<F2>Total revenue includes: Investment $1,886 and Other $16,734.
<F3>Included in Other Expenses: Asset Management fees $48,071, General and Administrative $70,091, and
Amortization $9,987.
<F4>Net loss includes: Equity in losses of Local Limited Partnerships of $174,210.
</FN>
</TABLE>
