10QSB 1 0001.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter period ended February 28, 2001 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 0-11023 MAXUS REAL PROPERTY INVESTORS-FOUR, L.P. (Exact name of small business issuer as specified in its charter) Missouri 43-1250566 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 104 Armour Road, North Kansas City, Missouri 64116 (Address of principal executive offi (Zip Code) Registrant's telephone number, including area code (816) 303-4500 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 ITEM 1. FINANCIAL STATEMENTS: Balance Sheet 3 Statements of Operations 4 Statements of Cash Flows 5 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS 7 PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS 9 ITEM 2. CHANGES IN SECURITIES 9 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 9 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 9 ITEM 5. OTHER INFORMATION 9 ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 9 SIGNATURES 10 EXHIBIT INDEX 11 2 PART 1 - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS MAXUS REAL PROPERTY INVESTORS - FOUR, L.P. (A LIMITED PARTNERSHIP) BALANCE SHEET
February 28, November 30, 2001 2000 (Unaudited) ASSETS: Investment property Land $ 1,014,000 1,014,000 Buildings and improvements 15,335,000 15,313,000 ------------ ------------ 16,349,000 16,327,000 Less accumulated depreciation 9,392,000 9,259,000 ------------ ------------ Total investment property 6,957,000 7,068,000 Cash 1,466,000 1,186,000 Accounts receivable, less allowance for doubtful accounts 30,000 51,000 Prepaid expenses 33,000 12,000 Deferred expenses, less accumulated amortization 101,000 93,000 ------------ ------------ Total assets $ 8,587,000 8,410,000 ============ ============ LIABILITIES AND PARTNER'S DEFICIT: Liabilities: Mortgage notes payable $ 9,900,000 9,900,000 Accounts payable and accrued expenses 246,000 124,000 Refundable tenant deposits 100,000 99,000 ------------ ------------ Total liabilities 10,246,000 10,123,000 Partners' deficit (1,659,000) (1,713,000) ------------ ------------ Total liabilities and partners' deficit 8,587,000 8,410,000 ============ ============
3 MAXUS REAL PROPERTY INVESTORS - FOUR, L.P. (A LIMITED PARTNERSHIP) STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended February 28 February 29 2001 2000 Revenues: Rental $ 649,000 684,000 Other 45,000 115,000 --------- --------- Total revenues 694,000 799,000 --------- --------- Expenses: Depreciation and amortization 135,000 164,000 Repairs and maintenance, including common area maintenance 80,000 84,000 Real estate taxes 34,000 90,000 Interest, net 173,000 317,000 Professional fees 30,000 41,000 General and administrative 54,000 42,000 Utilities 36,000 51,000 Property management fees - related parties 42,000 37,000 Other 56,000 61,000 --------- --------- Total expenses 640,000 887,000 --------- --------- Net Income (loss) $ 54,000 (88,000) ========= ========= Net income (loss) allocation: General partners $ 1,000 (1,000) Limited partners 53,000 (87,000) --------- --------- $ 54,000 (88,000) ========= ========= Limited partners' data: Net income (loss) per unit $ 3.92 (6.41) ========= ========= Weighted average limited partnership units outstanding 13,529 13,529 ========= =========
4 MAXUS REAL PROPERTY INVESTORS-FOUR, L.P. (A LIMITED PARTNERSHIP) STATEMENTS OF CASH FLOWS (UNAUDITED)
Three Months Ended February 28 February 29 2001 2000 Cash flows from operating activities: Net income (loss) $ 54,000 (88,000) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 135,000 164,000 Changes in accounts affecting operations: Accounts receivable 21,000 64,000 Prepaid expenses (21,000) 6,000 Accounts payable and accrued expenses 122,000 (80,000) Refundable tenant deposits 1,000 5,000 Deferred expenses (10,000) -- ----------- ----------- Net cash provided by operating activities 302,000 71,000 ----------- ----------- Cash flows from investing activities - capital expenditures (22,000) (19,000) ----------- ----------- Cash flows from financing activities -principal payments on mortgage notes payable -- (63,000) ----------- ----------- Net (decrease) increase in cash 280,000 (11,000) Cash, beginning of period 1,186,000 21,000 ----------- ----------- Cash, end of period $ 1,466,000 10,000 =========== =========== Supplemental disclosure of cash flow information - cash paid during the quarter for interest $ 184,000 404,000 =========== ===========
5 MAXUS REAL PROPERTY INVESTORS-FOUR, L.P. (A LIMITED PARTNERSHIP) NOTES TO UNAUDITED FINANCIAL STATEMENTS THREE MONTHS ENDED FEBRUARY 28, 2001 AND FEBRUARY 29, 2000 (1) Summary of Significant Accounting Policies Refer to the financial statements of Maxus Real Property Investors - Four, L.P., formerly known as Nooney Real Property Investors - Four, L.P. (the "Partnership"), for the year ended November 30, 2000, which are contained in the Partnership's Annual Report on Form 10-KSB, for a description of the accounting policies which have been continued without change except as noted below. Also, refer to the footnotes to those statements for additional details of the Partnership's financial condition. The details in those notes have not changed except as a result of normal transactions in the interim or as noted below. In the opinion of the general partner, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flow at February 28, 2001 and for all periods presented have been made. The results for the three-month period ended February 28, 2001 are not necessarily indicative of the results which may be expected for the entire year. (a) Description of Business The Partnership is a limited partnership organized under the laws of the State of Missouri on February 9, 1982. The Partnership was organized to invest primarily in income-producing real properties such as shopping centers, office buildings and other commercial properties, apartment buildings, warehouses, and light industrial properties. The Partnership's portfolio is comprised of an apartment building located in West St. Louis County, Missouri (Woodhollow Apartments) which generated 100% of total revenues for the quarter ended February 28, 2001 and 76% of total revenues for the quarter ended February 29, 2000. A retail shopping center (Cobblestone Court) located in Burnsville, Minnesota, a suburb of Minneapolis, which generated 24% of total revenues for the quarter ended February 29, 2000, was sold on May 24, 2000. (b) Basis of Accounting The financial statements include only those assets, liabilities, and results of operations of the partners which relate to the business of Maxus Real Property Investors-Four, L.P. The statements do not include assets, liabilities, revenues or expenses attributable to the partners' individual activities. No provision has been made for federal and state income taxes since these taxes are the responsibility of the partners. (the remainder of this page left blank intentionally) 6 ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OR RESULTS OF OPERATIONS This 10-QSB contains forward-looking information (as defined in the Private Securities Litigation Reform Act of 1995) that involves risk and uncertainty, including trends in the real estate investment market, projected leasing and sales, and future prospects for the Partnership. Actual results could differ materially from those contemplated by such statements. Liquidity and Capital Resources Cash reserves as of February 28, 2001 are $1,466,000 an increase of $280,000 from November 30, 2000. Cash provided from operating activities for the three months ended February 28, 2001 was $302,000. The increase in cash provided by operating activities was due primarily to an increase of $142,000 in net income (loss) from ($88,000) for the period ended February 29, 2000 to $54,000 for the period ended February 28, 2001. In addition, accounts payable and accrued expenses increased $122,000. Investing activities used $22,000 due to property and equipment purchases. Results of Operations The results of operations for the Partnership's properties for the quarters ended February 28, 2001 and February 29, 2000 are detailed in the schedule below. Expenses of the Partnership are excluded. 2001 Woodhollow Apartments Cobblestone Court Revenues $ 694,000 $-- Expenses 640,000 -- --------- ------- Net Income $ 54,000 $-- ========= ======= 2000 Woodhollow Apartments Cobblestone Court Revenues $ 610,000 $189,000 Expenses 637,000 251,000 --------- ---------- Net Loss $ (27,000) $ (62,000) ========= ========== Cobblestone Court was sold May 24, 2000, and accordingly is not included in the 2001 results. At Woodhollow Apartments, revenues increased $84,000 in first quarter of 2001 compared to the same period in 2000. The increase in revenue is primarily due to an increase in rental income of $70,000 and miscellaneous income of $14,000. At Woodhollow, occupancy increased to 99% from 95% at November 30, 2000. Expenses remained consistent with 2000. 7 Pro Forma Results The table below presents the pro-forma results of operations without Cobblestone Court for the three months ended February 29, 2000. Cobblestone Court was sold May 24, 2000. These pro forma operating results are not necessarily indicative of what the actual results would have been had the Cobblestone Court property been sold at the beginning of the earliest period presented. Three Months Ended February 28, February 29, 2001 2000 (Proforma) Revenues $694,000 610,000 Repairs and maintenance, including common area maintenance 80,000 35,000 Interest, net 173,000 212,000 Depreciation 135,000 160,000 General and administrative 54,000 41,000 Property management fees 42,000 29,000 Other 156,000 165,000 -------- -------- Total expenses 640,000 642,000 -------- -------- Net income (loss) $ 54,000 (32,000) ======== ======== Net income (loss) per limited partnership unit 3.92 (2.32) ======== ======== Results of Operations - Consolidated For the three month period ended February 28, 2001, the Partnership's consolidated revenues were $694,000 compared with $799,000 for the three months ended February 29, 2000. Revenues decreased by $105,000 (13.1%) for the three months ended February 28, 2001 compared to the same period ended February 29, 2000. Revenue at Woodhollow for the quarter ended February 28, 2001 increased by $84,000, offset by a decrease in income due to the sale of Cobblestone Court of $189,000. For the three month periods ended February 28, 2001 and February 29, 2000, the Partnership's consolidated expenses were $640,000 and $887,000, respectively. Expenses decreased by $247,000 (27.8%) for the three month period ended February 28, 2001 as compared to the same period ended February 29, 2000. Expenses at Woodhollow for the three months ended February 28, 2001 were consistent with the period ended February 29, 2000. Expenses at Cobblestone Court decreased by $251,000 due to the sale of Cobblestone Court in May 2000. 8 PART II. OTHER INFORMATION ITEM 1: LEGAL PROCEEDINGS None ITEM 2. CHANGES IN SECURITIES None ITEM 3. DEFAULTS UPON SENIOR SECURITIES None ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None ITEM 5. OTHER INFORMATION None ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits See Exhibit Index on Page 11 (b) Reports on Form 8-K No reports on Form 8-K were filed by the Registrant during the first quarter of 2001. 9 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: April 11, 2001 MAXUS REAL PROPERTY INVESTORS-FOUR, L.P. By: MAXUS CAPITAL CORP. General Partner By: /s/ John W. Alvey John W. Alvey Director, Vice President Secretary and Treasurer (Principal Financial Officer) 10 EXHIBIT INDEX Exhibit Number Description 3.1 Amended and Restated Agreement and Certificate of Limited Partnership dated April 7, 1982 is incorporated by reference to the Form 10-K for the year ended November 30, 1999 filed by the Registrant under the Securities Act of 1933 (File No. 000-11023) 3.2 Amended of Certificate of Limited Partnership date December 21, 1999 is incorporated by reference to the Form 8-K filed by the Registrant under the Securities Act of 1933 (File No. 000-11023) 11