-----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, QPCxH3HCWwONXS0H7iX5hRrWWX7OsXK3f/Tk6gG3UdAy0jntlXrfFrLckApzjb5G E+9M+e9w5JeJ+f0H3U7JXg== 0000310303-97-000002.txt : 19970508 0000310303-97-000002.hdr.sgml : 19970508 ACCESSION NUMBER: 0000310303-97-000002 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970507 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ANGELES PARTNERS VII CENTRAL INDEX KEY: 0000310303 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF NONRESIDENTIAL BUILDINGS [6512] IRS NUMBER: 953215214 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-08851 FILM NUMBER: 97597082 BUSINESS ADDRESS: STREET 1: ONE INSIGNIA FINANCIAL PLZ STREET 2: PO BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 BUSINESS PHONE: 8642391513 MAIL ADDRESS: STREET 1: ONE INSIGNIA FINANCIAL PLAZA STREET 2: P.O. BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 10QSB 1 FORM 10-QSB.--QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 QUARTERLY OR TRANSITIONAL REPORT U.S. Securities and Exchange Commission Washington, D.C. 20549 FORM 10-QSB [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1997 [ ] TRANSITION REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period.........to......... Commission file number 0-8851 ANGELES PARTNERS VII (Exact name of small business issuer as specified in its charter) California 95-3215214 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) One Insignia Financial Plaza, P.O. Box 1089 Greenville, South Carolina 29602 (Address of principal executive offices) (Zip Code) Issuer's telephone number (864) 239-1000 Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS ANGELES PARTNERS VII BALANCE SHEET (Unaudited) (in thousands, except unit data) March 31, 1997 Assets Cash and cash equivalents: Unrestricted $ 282 Restricted--tenant security deposits 31 Accounts receivable 9 Escrows for taxes 15 Other assets 5 Investment properties: Land $ 366 Buildings and related personal property 5,273 5,639 Less accumulated depreciation (3,684) 1,955 $ 2,297 Liabilities and Partners' Deficit Liabilities Accounts payable $ 4 Tenant security deposits 32 Other liabilities 49 Mortgage note payable 2,424 Partners' Capital (Deficit) General partner $ 292 Limited partners' (8,669 units issued and outstanding) (504) (212) $ 2,297 See Accompanying Notes to Financial Statements b) ANGELES PARTNERS VII STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except unit data) Three Months Ended March 31, 1997 1996 Revenues: Rental income $ 283 $ 270 Other income 16 13 Total revenues 299 283 Expenses: Operating 82 84 General and administrative 21 22 Maintenance 42 34 Depreciation 67 63 Interest 56 58 Property taxes 10 10 Total expenses 278 271 Net income $ 21 $ 12 Net income allocated to general partner (1%) $ -- $ -- Net income allocated to limited partners (99%) 21 12 Net income $ 21 $ 12 Net income per limited partnership unit $ 2.42 $ 1.38 See Accompanying Notes to Financial Statements c) ANGELES PARTNERS VII STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT) (Unaudited) (in thousands, except unit data)
Limited Partnership General Limited Units Partner Partners Total Original capital contributions 8,674 $ 88 $ 8,674 $ 8,762 Partners' capital (deficit) at December 31, 1996 8,669 $ 292 $ (525) $ (233) Net income for the three months ended March 31, 1997 -- -- 21 21 Partners' capital (deficit) at March 31, 1997 8,669 $ 292 $ (504) $ (212) See Accompanying Notes to Financial Statements
d) ANGELES PARTNERS VII STATEMENTS OF CASH FLOWS (Unaudited) (in thousands)
Three Months Ended March 31, 1997 1996 Cash flows from operating activities: Net income $ 21 $ 12 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 67 63 Change in accounts: Restricted cash -- (1) Accounts receivable 13 1 Escrows for taxes 31 28 Other assets (1) -- Accounts payable (15) (24) Tenant security deposit liabilities 1 1 Other liabilities (27) 3 Net cash provided by operating activities 90 83 Cash flows used in investing activities: Property improvements and replacements (20) (19) Cash flows used in financing activities: Payments on mortgage notes payable (27) (25) Net increase in cash and cash equivalents 43 39 Unrestricted cash and cash equivalents at beginning of period 239 193 Unrestricted cash and cash equivalents at end of period $ 282 $ 232 Supplemental disclosure of cash flow information: Cash paid for interest $ 56 $ 58 See Accompanying Notes to Financial Statements
e) ANGELES PARTNERS VII NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE A - BASIS OF PRESENTATION The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Item 310(b) of Regulation S-B. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of Angeles Realty Corporation (the "General Partner"), all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 1997, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 1997. For further information, refer to the financial statements and footnotes thereto included in Angeles Partners VII's (the "Partnership") annual report on Form 10-KSB for the fiscal year ended December 31, 1996. Certain reclassifications have been made to the 1996 information to conform to the 1997 presentation. NOTE B - TRANSACTIONS WITH AFFILIATES The Partnership has no employees and is dependent on the General Partner and its affiliates for the management and administration of all Partnership activities. The partnership agreement provides for payments to affiliates for services and as reimbursement of certain expenses incurred by affiliates on behalf of the Partnership. Three Months Ended March 31, 1997 1996 (in thousands) Property management fees $ 14 $ 14 Reimbursement for services of affiliates 15 15 The Partnership insures its property under a master policy through an agency and insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the current year's master policy. The current agent assumed the financial obligations of the affiliate of the General Partner who receives payments on these obligations from the agent. The amount of the Partnership's insurance premiums accruing to the benefit of the affiliate of the General Partner by virtue of the agent's obligations is not significant. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION The Partnership's investment property consists of one apartment complex. The following table sets forth the average occupancy of the property for the three months ended March 31, 1997 and 1996: Average Occupancy Property 1997 1996 Cedarwood Apartments Gretna, Louisiana 96% 97% The Partnership reported net income of $21,000 for the three months ended March 31, 1997, versus net income of $12,000 for the three months ended March 31, 1996. The increase in net income for the three months ended March 31, 1997, is attributable to an increase in rental income, which is slightly offset by an increase in depreciation expense and maintenance expense. Rental income increased as a result of an increase in average rental rates, despite a 1% decrease in occupancy at Cedarwood Apartments. The increase in depreciation expense was due to the completion of property improvements in 1996 in an effort to upgrade the interior of the units. This interior upgrading project has continued from fourth quarter 1996 into 1997 and, as a result, has lead to an increase in maintenance expense for the three months ended March 31, 1997. Included in maintenance expense for the period ended March 31, 1996, is $17,000 of major repairs and maintenance mainly comprised of interior building improvements. The General Partner continues to monitor the rental market environment at its apartment property to assess the feasibility of increasing rents, to maintain or increase the occupancy level and to protect the Partnership from increases in expense. The General Partner expects to be able, at a minimum, to continue protecting the Partnership from the burden of inflation-related increases in expenses by increasing rents and maintaining a high overall occupancy level. However, rental concessions and rental rate reductions needed to offset softening market conditions could affect the ability to sustain this plan. As of March 31, 1997, the Partnership had unrestricted cash and cash equivalents of $282,000 versus $232,000 at March 31, 1996. Net cash provided by operating activities increased due to the increase in net income as mentioned above, a decrease in accounts receivable and a lesser decrease in accounts payable. These increases were partially offset by a decrease in other liabilities. Net cash used in investing and financing activities for the period ending March 31, 1997, remained relatively consistent with the period ending March 31, 1996. The sufficiency of existing liquid assets to meet future liquidity and capital expenditure requirements is directly related to the level of capital expenditures required at the property to adequately maintain the physical assets and other operating needs of the Partnership. Such assets are currently thought to be sufficient for any short-term needs of the Partnership. The mortgage indebtedness of $2,424,000 is being amortized over 28 years with a maturity date of May 2007, at which time the property will be refinanced or sold. No cash distributions were made during the three months ended March 31, 1997. Future distributions will depend on the levels of net cash generated from operations, refinancings, property sale and the availability of cash reserves. PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K a) Exhibits Exhibit 27, Financial Data Schedule, is filed as an exhibit to this report. b) Reports on Form 8-K: None filed during the quarter ended March 31, 1997. SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ANGELES PARTNERS VII By: Angeles Realty Corporation General Partner By: /s/Carroll D. Vinson Carroll D. Vinson President By: /s/Robert D. Long Robert D. Long Vice President/CAO Date: May 7, 1997 EX-27 2
5 This schedule contains summary financial information extracted from Angeles Partners VII 1997 First Quarter 10-QSB and is qualified in its entirety by reference to such 10-QSB filing. 0000310303 ANGELES PARTNERS VII 1,000 3-MOS DEC-31-1997 MAR-31-1997 282 0 9 0 0 0 5,639 3,684 2,297 0 2,424 0 0 0 (212) 2,297 0 299 0 0 278 0 56 0 0 0 0 0 0 21 2.42 0 Registrant has an unclassified balance sheet. Multiplier is 1.
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