-----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, RBVwT19aFt+o6h96n5t4swr6JRTrfQ3vyltGNuhfseMyZvhSkak421BriNLfTmKZ LotPXlQFM2UBV2MGqHvmKA== 0000310303-97-000004.txt : 19970801 0000310303-97-000004.hdr.sgml : 19970801 ACCESSION NUMBER: 0000310303-97-000004 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970731 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: 97649270 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 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 June 30, 1997 or [ ] 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 Greenville, South Carolina 29602 (Address of principal executive offices) (Zip Code) (864) 239-1000 (Issuer's telephone number) 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 a) ANGELES PARTNERS VII BALANCE SHEET (Unaudited) (in thousands, except unit data) June 30, 1997 Assets Cash and cash equivalents: Unrestricted $ 325 Restricted--tenant security deposits 31 Accounts receivable 10 Escrow for taxes 26 Other assets 16 Investment properties: Land $ 366 Buildings and related personal property 5,287 5,653 Less accumulated depreciation (3,751) 1,902 $ 2,310 Liabilities and Partners' Deficit Liabilities Accounts payable $ 12 Tenant security deposits 31 Other liabilities 60 Mortgage note payable 2,396 Partners' Capital (Deficit) General partner $ 292 Limited partners (8,669 units issued and outstanding) (481) (189) $ 2,310 See Accompanying Notes to Financial Statements b) ANGELES PARTNERS VII STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except unit data)
Three Months Ended Six Months Ended June 30, June 30, 1997 1996 1997 1996 Revenues: Rental income $ 291 $ 278 $ 574 $ 548 Other income 15 12 31 25 Total revenues 306 290 605 573 Expenses: Operating 91 89 173 173 General and administrative 10 28 31 50 Maintenance 48 39 90 73 Depreciation 68 65 135 128 Interest 55 57 111 115 Property taxes 11 10 21 20 Total expenses 283 288 561 559 Net income $ 23 $ 2 $ 44 $ 14 Net income allocated to general partner (1%) $ -- $ -- $ -- $ -- Net income allocated to limited partners (99%) 23 2 44 14 Net income $ 23 $ 2 $ 44 $ 14 Net income per limited partnership unit $ 2.65 $ 0.23 $ 5.08 $ 1.61 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 six months ended June 30, 1997 -- -- 44 44 Partners' capital (deficit) at June 30, 1997 8,669 $ 292 $ (481) $ (189) See Accompanying Notes to Financial Statements
d) ANGELES PARTNERS VII STATEMENTS OF CASH FLOWS (Unaudited) (in thousands)
Six Months Ended June 30, 1997 1996 Cash flows from operating activities: Net income $ 44 $ 14 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 135 128 Change in accounts: Restricted cash -- (1) Accounts receivable 11 1 Escrows for taxes 20 17 Other assets (12) -- Accounts payable (6) (23) Tenant security deposit liabilities -- 1 Other liabilities (16) 15 Net cash provided by operating activities 176 152 Cash flows used in investing activities: Property improvements and replacements (34) (48) Cash flows used in financing activities: Payments on mortgage notes payable (56) (50) Net increase in unrestricted cash and cash equivalents 86 54 Unrestricted cash and cash equivalents at beginning of period 239 194 Unrestricted cash and cash equivalents at end of period $ 325 $ 248 Supplemental disclosure of cash flow information: Cash paid for interest $ 111 $ 116 See Accompanying Notes to Financial Statements
e) ANGELES PARTNERS VII NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1 - BASIS OF PRESENTATION The accompanying unaudited financial statements of Angeles Partners VII (the "Partnership" or the "Registrant") 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 and six months ended June 30, 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 the Partnership's 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 2 - 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. The following amounts were paid to the General Partner and affiliates during the six months ended June 30, 1997 and 1996: 1997 1996 (in thousands) Property management fees $ 30 $ 28 Reimbursement for services of affiliates 20 33 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 six months ended June 30, 1997 and 1996: Average Occupancy Property 1997 1996 Cedarwood Apartments Gretna, Louisiana 97% 98% The Partnership reported net income of $23,000 and $44,000 for the three and six month periods ended June 30, 1997, respectively, versus net income of $2,000 and $14,000 for the three and six month periods ended June 30, 1996, respectively. The increase in net income for the three and six months ended June 30, 1997, is attributable to an increase in rental income and a decrease in general and administrative expenses, which is slightly offset by an increase in maintenance expense. Rental income increased as a result of an increase in average rental rates at Cedarwood Apartments, despite a 1% decrease in occupancy. The decrease in general and administrative expenses is mainly due to a decrease in reimbursements for services of affiliates. An 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 and six months ended June 30, 1997. Included in maintenance expense for the six months ended June 30, 1997, is $5,000 of major repairs and maintenance mainly comprised of major landscaping, exterior building improvements and window coverings. 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 June 30, 1997, the Partnership had unrestricted cash of $325,000 versus $248,000 at June 30, 1996. Net cash provided by operating activities increased primarily due to the increase in net income, as mentioned above. Net cash used in investing activities decreased as a result of decreased property improvements in 1997 versus 1996, despite continuing interior upgrades at the property, which are included in maintenance expense, as described above. Net cash used in financing activities for the six months ended June 30, 1997, remained relatively consistent with the six months ended June 30, 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 $2,396,000 is being amortized over 28 years with a maturity date of May 2007. No cash distributions were made during the six months ended June 30, 1997. Future cash 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 June 30, 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: July 31, 1997 EX-27 2
5 This schedule contains summary financial information extracted from Angeles Partners VII 1997 Second Quarter 10-QSB and is qualified in its entirety by reference to such 10-QSB filing. 0000310303 ANGELES PARTNERS VII 1,000 6-MOS DEC-31-1997 JUN-30-1997 325 0 10 0 0 0 5,653 3,751 2,310 0 2,396 0 0 0 (189) 2,310 0 605 0 0 561 0 111 44 0 44 0 0 0 44 5.08 0 Registrant has an unclassified balance sheet. Multiplier is 1.
-----END PRIVACY-ENHANCED MESSAGE-----