-----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, RwjHaPtIZtf01bFrA/0CTK7G1Sh+9BhLb1WgTNXUiHx0jff7p/TaHTCKp/3jVHIh NeqqZUEIcZ01+DGaUlnncg== 0000353391-96-000002.txt : 19960813 0000353391-96-000002.hdr.sgml : 19960813 ACCESSION NUMBER: 0000353391-96-000002 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960812 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MCCOMBS PROPERTIES V LTD CENTRAL INDEX KEY: 0000353391 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 953639086 STATE OF INCORPORATION: CA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-10362 FILM NUMBER: 96608582 BUSINESS ADDRESS: STREET 1: ONE INSINIA FINANCIAL PLAZA STREET 2: PO BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 BUSINESS PHONE: 8642391000 MAIL ADDRESS: STREET 1: ONE INSIGNIA FINANCIAL PLAZA STREET 2: PO 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 (As last amended by 34-32231, eff. 06/03/93.) 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, 1996 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period.........to......... Commission file number 0-10362 MCCOMBS PROPERTIES V, LTD. (Exact name of small business issuer as specified in its charter) California 95-3639086 (State or other jurisdiction of (I.R.S. 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 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 . PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS a) MCCOMBS PROPERTIES V, LTD. STATEMENT OF NET ASSETS IN LIQUIDATION (Unaudited) (in thousands) June 30, 1996 Assets Cash and cash equivalents $ 746 Liabilities Other liabilities 186 Estimated costs during the period of liquidation 8 194 Net assets in liquidation $ 552 See Accompanying Notes to Financial Statements b) MCCOMBS PROPERTIES V, LTD. STATEMENT OF CHANGES IN NET ASSETS IN LIQUIDATION (Unaudited) (in thousands) June 30, 1996 Net assets in liquidation at March 31, 1996 $ 556 Changes in net assets in liquidation attributed to: Decrease in unrestricted cash (53) Decrease in other liabilities 50 Increase in estimated costs during the period of liquidation (1) Net assets in liquidation at June 30, 1996 $ 552 See Accompanying Notes to Financial Statements b) MCCOMBS PROPERTIES V, LTD. STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except unit data) Three Months Ended March 31, 1996 Revenues: Rental income $ 112 Other income 22 Total revenues 134 Expenses: Operating 62 General and administrative 16 Maintenance 7 Depreciation 24 Interest 48 Property taxes 8 Total expenses 165 Adjustment to liquidation basis (7) Gain on disposition of property 769 Net (loss) income $ 731 Net (loss) income allocated to general partners (1%) $ 7 Net (loss) income allocated to limited partners (99%) 724 $ 731 Net (loss) income per limited partnership unit $28.93 See Accompanying Notes to Financial Statements b) MCCOMBS PROPERTIES V, LTD. STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except unit data) Three Months Ended Six Months Ended June 30, 1995 June 30, 1995 Revenues: Rental income $ 113 $ 229 Other income 16 27 Total revenues 129 256 Expenses: Operating 80 133 General and administrative 12 22 Maintenance 19 29 Depreciation 24 47 Interest 52 105 Property taxes 8 17 Total expenses 195 353 Adjustment to liquidation basis -- -- Gain on disposition of property -- -- Net (loss) income $ (66) $ (97) Net (loss) income allocated to general partners (1%) $ -- $ -- Net (loss) income allocated to limited partners (99%) (66) (97) $ (66) $ (97) Net (loss) income per limited partnership unit $(2.66) $(3.91) See Accompanying Notes to Financial Statements d) MCCOMBS PROPERTIES V, LTD. STATEMENTS OF CASH FLOWS (Unaudited) (in thousands)
Six Months Ended June 30, 1995 Cash flows from operating activities: Net income (loss) $ (97) Adjustments to liquidation basis -- Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation 47 Amortization of discounts 4 Gain on disposition of investment property -- Change in accounts: Restricted cash (16) Accounts receivable -- Escrow for taxes (11) Other assets (3) Accounts payable 6 Tenant security deposit liabilities 2 Accrued taxes 16 Other liabilities (1) Net cash used in operating activities (53) Cash flows from investing activities: Property improvements and replacements (18) Proceeds from sale of investment property -- Net cash provided by (used in) investing activities (18) Cash flow from financing activities: Payments on mortgage notes payable (7) Net cash used in financing activities (7) Net increase (decrease) in cash and cash equivalents (78) Cash and cash equivalents at beginning of period 821 Cash and cash equivalents at end of period $ 743 Supplemental disclosure of cash flow information: Cash paid for interest $ 101 See Accompanying Notes to Financial Statements
e) MCCOMBS PROPERTIES V, LTD. NOTES TO FINANCIAL STATEMENTS (Unaudited) Note A - Basis of Presentation As of March 31, 1996, McCombs Properties V, Ltd., a California limited partnership ("Partnership"), adopted the liquidation basis of accounting. On March 25, 1996, the Partnership sold Cimarron Apartments, the sole investment property held by the Partnership, to an unaffiliated third party. Cimarron Acquisition Partners, L.P., a Texas limited partnership, purchased the property after the Partnership's negotiations with the holder of the first mortgage to restructure said debt proved to be unsuccessful. The decision to sell the property was further influenced by a shortage of cash to pay for necessary capital improvements and a market that, in the opinion of CRPTEX, Inc. ("General Partner"), would not generate a return on the capital improvements. Cimarron Acquisition Partners, L.P. paid $50,000 cash for Cimarron Apartments and assumed mortgage debt of approximately $2,000,000 as well as approximately $76,000 in liabilities for accounts payable and real property taxes assessed against the property in 1995. As a result of the decision to liquidate, the Partnership changed its basis of accounting for its financial statements at March 31, 1996, from the going concern basis of accounting to the liquidation basis of accounting. Consequently, assets have been valued at estimated net realizable value and liabilities are presented at their estimated settlement amounts, including estimated costs associated with carrying out the liquidation. The valuation of assets and liabilities necessarily requires many estimates and assumptions and there are substantial uncertainties in carrying out the liquidation. The actual realization of assets and settlement of liabilities could be higher or lower than amounts indicated and is based upon the General Partner's estimates as of the date of the financial statements. The statement of net assets in liquidation as of June 30, 1996, includes approximately $8,000 of accrued costs that the General Partner estimates will be incurred during the period of liquidation, based on the assumption that the liquidation process will be completed by September 30, 1996. The costs include anticipated administrative expenses and are net of estimated interest income. Because the success in realization of assets and the settlement of liabilities is based on the General Partner's best estimates, the liquidation period may be shorter than projected or it may be extended beyond the projected period. The accompanying unaudited financial statements at June 30, 1996, have been prepared in accordance with generally accepted accounting principles for interim financial information under the liquidation basis of accounting 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 the General Partner, all adjustments considered necessary for a fair presentation on the liquidation basis have been included. Operating results for the six month period ended June 30, 1996, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 1996. For further information, refer to the financial statements and footnotes thereto included in the Partnership's annual report on Form 10-KSB for the year ended December 31, 1995. Note B - Transactions with Affiliated Parties 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 transactions with the General Partner and affiliates for the six months ended June 30, 1996 and 1995, are as follows: 1996 1995 (in thousands) Property management fees $ 6 $12 Reimbursement for services from affiliates 16 14 The Partnership insured 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 to 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 Results of Operation, Liquidity, and Capital Resources As of March 31, 1996, the Partnership adopted the liquidation basis of accounting. On March 25, 1996, the Partnership sold its sole investment property, Cimarron Apartments, after negotiations with the holder of the first mortgage to restructure the debt proved to be unsuccessful. The decision to sell the property was further influenced by a shortage of cash to pay for necessary capital improvements and a market that, in the opinion of the Partnership's General Partner, would not generate a return on the capital improvements. As a result of the decision to liquidate the Partnership, the Partnership changed its basis of accounting for its financial statements at March 31, 1996, from the going concern basis of accounting to the liquidation basis of accounting. Consequently, assets have been valued at the estimated net realizable value (including subsequent actual transactions) and liabilities are presented at their estimated settlement amounts, including estimated costs associated with carrying out the liquidation. The valuation of assets and liabilities necessarily requires many estimates and assumptions and there are substantial uncertainties in carrying out the liquidation. The actual realization of assets and settlement of liabilities could be higher or lower than amounts indicated and is based upon the General Partner's estimates as of the date of the financial statements. Liquidity and Capital Resources For the three months ended June 30, 1996, the Partnership recorded a net decrease in net assets in liquidation of $4,000. The decrease is primarily due to a decrease in unrestricted cash, which resulted from the payment of invoices for additional costs during the period of liquidation that were not included as of March 31, 1996. The statement of net assets in liquidation as of June 30, 1996, includes approximately $8,000 of net accrued costs that the General Partner estimates will be incurred during the period of liquidation, based upon the assumption that the liquidation process will be completed during the third quarter of 1996. These costs include anticipated administrative expenses and are net of estimated interest income. Because the success in realization of assets and the settlement of liabilities is based upon the General Partner's best estimates, the liquidation period may be shorter than projected or it may be extended beyond the projected period. 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, 1996. 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. MCCOMBS PROPERTIES V, LTD. By: CRPTEX, INC. the General Partner By:/s/ Carroll D. Vinson Carroll D. Vinson President By:/s/ Robert D. Long, Jr. Robert D. Long, Jr. Vice President/CAO Date: August 12, 1996 EX-27 2
5 This schedule contains summary financial information extracted from McCombs Properties V Ltd. 1996 Second Quarter 10-QSB and is qualified in its entirety by reference to such 10-QSB filing. 0000353391 MCCOMBS PROPERTIES V LTD 1,000 6-MOS DEC-31-1996 JUN-30-1996 746 0 0 0 0 0 0 0 746 0 0 0 0 0 552 746 0 134 0 0 165 0 48 0 0 0 0 0 0 731 28.93 0 The Registrant has an unclassified balance sheet. Multiplier is 1.
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