-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PCCgw7yh8ZhbWUCzO5zrUHxUvJlkzCTPJbkpZ9+SP7l+ns/Wj8vxFflkEg6ArLbr WzGqi9YFLtsJK1dnslM50g== 0000277925-96-000003.txt : 19960515 0000277925-96-000003.hdr.sgml : 19960515 ACCESSION NUMBER: 0000277925-96-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960514 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUBLIC STORAGE PARTNERS II LTD CENTRAL INDEX KEY: 0000275915 STANDARD INDUSTRIAL CLASSIFICATION: TRUCKING & COURIER SERVICES (NO AIR) [4210] IRS NUMBER: 953146963 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-08676 FILM NUMBER: 96563358 BUSINESS ADDRESS: STREET 1: 600 N BRAND BLVD CITY: GLENDALE STATE: CA ZIP: 91203 BUSINESS PHONE: 8182448080 MAIL ADDRESS: STREET 1: 600 NORTH BRAND BLVD STREET 2: SUITE 300 CITY: GLENDALE STATE: CA ZIP: 91203 10-Q 1 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the period ended March 31, 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 0-8676 PUBLIC STORAGE PARTNERS II, LTD. ---------------------------------------------------- (Exact name of registrant as specified in its charter) California 95-3146963 - ------------------------------- ---------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 701 Western Ave. Glendale, California 91201 - ---------------------------------------- --------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (818) 244-8080 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 -- --- INDEX Page ---- PART I. FINANCIAL INFORMATION Condensed balance sheets at March 31, 1996 and December 31, 1995 2 Condensed statements of income for the three months ended March 31, 1996 and 1995 3 Condensed statement of partners' deficit for the three months ended March 31, 1996 4 Condensed statements of cash flows for the three months ended March 31, 1996 and 1995 5 Notes to condensed financial statements 6 Management's discussion and analysis of financial condition and results of operations 7-8 PART II. OTHER INFORMATION 9 PUBLIC STORAGE PARTNERS II, LTD. CONDENSED BALANCE SHEETS March 31, December 31, 1996 1995 ---------- ---------- ASSETS ------ Cash and cash equivalents $ 112,000 $ -- Rent and other receivables 22,000 23,000 Real estate facilities at cost: Building, land improvements and equipment 3,284,000 3,281,000 Land 1,268,000 1,267,000 ---------- ---------- 4,552,000 4,548,000 Less accumulated depreciation (2,305,000) (2,265,000) ---------- ---------- 2,247,000 2,283,000 Other assets 247,000 279,000 ---------- ---------- Total assets $ 2,628,000 $ 2,585,000 ========== ========== LIABILITIES AND PARTNERS' DEFICIT --------------------------------- Accounts payable $ 79,000 $ 35,000 Deferred revenue 75,000 74,000 Notes payable 8,447,000 8,602,000 Partners' deficit: Limited partners' deficit, $500 per unit, 10,000 units authorized, 9,890 issued and outstanding (4,430,000) (4,544,000) General partners' deficit (1,543,000) (1,582,000) ---------- ---------- Total partners' deficit (5,973,000) (6,126,000) Total liabilities and partners' deficit $ 2,628,000 $ 2,585,000 ========== ========== See accompanying notes. 2 PUBLIC STORAGE PARTNERS II, LTD. CONDENSED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended March 31, ---------------------- 1996 1995 -------- -------- (restated) REVENUES: Rental income $567,000 $530,000 Other income -- 3,000 -------- -------- 567,000 533,000 -------- -------- COSTS AND EXPENSES: Cost of operations 117,000 111,000 Management fees paid to affiliate 31,000 32,000 Depreciation and amortization 40,000 36,000 Administrative 8,000 9,000 Environmental cost -- 10,000 Interest expense 218,000 243,000 -------- -------- 414,000 441,000 -------- -------- NET INCOME $153,000 $ 92,000 ======== ======== Limited partners' share of net income ($15.27 per unit in 1996 and $9.20 per unit in 1995) $151,000 $ 91,000 General partners' share of net income 2,000 1,000 -------- -------- $153,000 $ 92,000 ======== ======== See accompanying notes. 3 PUBLIC STORAGE PARTNERS II, LTD. CONDENSED STATEMENT OF PARTNERS' DEFICIT (UNAUDITED) Total Limited General Partners' Partners Partners Deficit ----------- ----------- ------------ Balance at December 31, 1995 $(4,544,000) $(1,582,000) $(6,126,000) Net Income 151,000 2,000 153,000 Equity transfer (64,000) 64,000 -- ----------- ----------- ------------ Balance at March 31, 1996 $(4,457,000) $(1,516,000) $(5,973,000) =========== =========== ============ See accompanying notes. 4 PUBLIC STORAGE PARTNERS II, LTD. CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended March 31, ---------------------- 1996 1995 --------- --------- (restated) Cash flows from operating activities: Net income $ 153,000 $ 92,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 40,000 36,000 Decrease (increase) in rent and other receivables 1,000 (10,000) Decrease in prepaid loan fees 3,000 3,000 Amortization of prepaid management fees 31,000 -- Decrease (increase) in other assets (2,000) (1,000) Increase (decrease) in accounts payable 44,000 (1,000) Increase (decrease) in deferred revenue 1,000 13,000 --------- --------- Total adjustments 118,000 40,000 --------- --------- Net cash provided by operating activities 271,000 132,000 --------- --------- Cash flows from investing activities: Additions to real estate facilities (4,000) (3,000) --------- --------- Net cash used in investing activities (4,000) (3,000) --------- --------- Cash flows from financing activities: Principal payments on note payable (155,000) (130,000) --------- --------- Net cash used in financing activities (155,000) (130,000) --------- --------- Net increase (decrease) in cash and cash equivalents 112,000 (1,000) Cash and cash equivalents at the beginning of the period -- 159,000 --------- --------- Cash and cash equivalents at the end of the period $ 112,000 $ 158,000 ========= ========= See accompanying notes. 4 PUBLIC STORAGE PARTNERS II, LTD. NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED) 1. The accompanying unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures contained herein are adequate to make the information presented not misleading. These unaudited condensed financial statements should be read in conjunction with the financial statements and related notes appearing in the Partnership's Form 10-K for the year ended December 31, 1995. 2. In the opinion of management, the accompanying unaudited condensed financial statements reflect all adjustments, consisting of only normal accruals, necessary to present fairly the Partnership's financial position at March 31, 1996, the results of its operations for the three months ended March 31, 1996 and its cash flows for the three months then ended. 3. The results of operations for the three months ended March 31, 1996 are not necessarily indicative of the results expected for the full year. 4. In 1995, the Partnership prepaid eight months of 1996 management fees at a total cost of $83,000. The Partnership expensed $31,000 of the 1996 prepaid management fees for the three months ended March 31, 1996. The balance of prepaid management fees, $52,000, is included in other assets in the Balance Sheet at March 31, 1996. 5. Certain prior year amounts have been reclassified to conform with the 1996 classifications. 6 PUBLIC STORAGE PARTNERS II, LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS - --------------------- Three months ended March 31, 1996 compared to three months ended March 31, 1995: The Partnership's net income for the three months ended March 31, 1996 was $153,000 compared to $92,000 for the three months ended March 31, 1995, representing an increase of $61,000. This increase is primarily a result of increased operating results at the Partnership's real estate facilities combined with a decrease in interest expense. Rental income was $567,000 compared to $530,000 for the three months ended March 31, 1996 and 1995, respectively, representing an increase of $37,000. This increase is primarily attributable to higher rental rates and occupancy levels at the Partnership's mini-warehouse facilities. The weighted average occupancy levels at the mini-warehouse facilities were 81% and 78% for the three months ended March 31, 1996 and 1995, respectively. Realized rent for the three months ended March 31, 1996 increased to $.88 per occupied square foot from $.86 per occupied square foot for the three months ended March 31, 1995. Cost of operations (including management fees paid to affiliate) increased $5,000 to $148,000 from $143,000 for the three months ended March 31, 1996 and 1995, respectively. This increase is mainly attributable to increases in property tax expense. In 1995, the Partnership prepaid eight months of 1996 management fees on its mini-warehouse operations (based on the management fees for the comparable period during the calendar year immediately preceding the prepayment) discounted at the rate of 14% per year to compensate for early payment. During the three month period ended March 31, 1996, the Partnership expensed $31,000 of prepaid management fees. The amount is included in management fees paid to affiliate in the condensed statements of income. As a result of the prepayment, the Partnership saved approximately $3,000 in management fees, based on the management fees that would have been payable on rental income generated in the three months ended March 31, 1996 compared to the amount prepaid. 7 Interest expense decreased $25,000 to $218,000 from $243,000 for the three months ended March 31, 1996 and 1995 respectively. This decrease is mainly attributable to lower outstanding principal balances on the Partnership's notes payable. In 1995, the Partnership incurred cost of $10,000 to conduct environmental assessments of its properties to evaluate the environmental condition of and potential environmental liabilities of such properties. Those assessments did not indicate any environmental contamination of any of its property sites which individually or in the aggregate would be material to the Partnership's overall business, financial condition, or results of operations. No such cost was incurred in 1996. LIQUIDITY AND CAPITAL RESOURCES - ------------------------------- Cash generated from operations ($271,000 for the three months ended March 31, 1996) has been sufficient to meet all current obligations of the Partnership. In the fourth quarter of 1990, quarterly distributions were discontinued to enable the Partnership to make principal repayments that commenced in 1990 and will continue through November 2002, at which time the remaining principal is due. 8 PART II. OTHER INFORMATION ITEMS 1 through 5 are inapplicable. ITEM 6 Exhibits and Reports on Form 8-K (a) The following Exhibit is included herein: (27) Financial Data Schedule (b) Form 8 - K None. 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. DATED: May 14, 1996 PUBLIC STORAGE PARTNERS II, LTD. BY: Public Storage, Inc. General Partner BY: /s/ Ronald L. Havner, Jr. ------------------------- Ronald L. Havner, Jr. Vice President and Chief Financial Officer 9 EX-27 2 FDS--ARTICLE 5 OF REGULATION S-X
5 0000275915 PUBLIC STORAGE PARTNERS II, LTD. 3-mos Dec-31-1995 Jan-01-1996 Mar-31-1996 112,000 0 269,000 0 0 381,000 4,552,000 (2,305,000) 2,628,000 154,000 8,447,000 0 0 0 (5,973,000) 2,628,000 0 567,000 0 188,000 8,000 0 218,000 153,000 0 153,000 0 0 0 153,000 15.27 15.27
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