-----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, CRRYHqmYScosWlsyzwKzwz3FihVg/NqjGWX5ATZa+r3iAvZmj/z6VN9uk86KLcN2 KsSyWFuwvSNphxmdcwF67A== 0000702313-98-000006.txt : 19980518 0000702313-98-000006.hdr.sgml : 19980518 ACCESSION NUMBER: 0000702313-98-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980515 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PROPERTY RESOURCES FUND VI CENTRAL INDEX KEY: 0000702313 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 942838890 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-11798 FILM NUMBER: 98626422 BUSINESS ADDRESS: STREET 1: 1800 GATEWAY DR CITY: SAN MATEO STATE: CA ZIP: 94404 BUSINESS PHONE: 4153125824 MAIL ADDRESS: STREET 1: PO BOX 7777 CITY: SAN MATEO STATE: CA ZIP: 944047777 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) (x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended MARCH 31, 1998 -------------------------------------------------- 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 2-77330 ---------------------------------------------------------- PROPERTY RESOURCES FUND VI - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) CALIFORNIA 94-2838890 - -------------------------------------------------------------------------------- State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) P. O. BOX 7777, SAN MATEO, CALIFORNIA 94403-7777 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (650) 312-2000 - -------------------------------------------------------------------------------- N/A - -------------------------------------------------------------------------------- Former name, former address and former fiscal year, if changed since last report 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 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 Limited Partnership Units Outstanding as of March 31, 1998: 21,585 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS PROPERTY RESOURCES FUND VI (A CALIFORNIA LIMITED PARTNERSHIP) BALANCE SHEETS MARCH 31, 1998 AND DECEMBER 31, 1997 (Unaudited) (Dollars in thousands) 1998 1997 - ------------------------------------------------------------------------------- ASSETS: Real estate: Land $2,239 $2,239 Land improvements 781 781 Buildings and improvements 7,347 7,347 Furnishings and equipment 1060 1,050 - ------------------------------------------------------------------------------- 11427 11,417 Less: accumulated depreciation 4,780 4,708 - ------------------------------------------------------------------------------- Total real estate, net 6647 6,709 Cash and cash equivalents 505 407 Note receivable 214 237 Other assets, net 261 308 - ------------------------------------------------------------------------------- Total assets $7,627 $7,661 =============================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY: Notes payable $6,452 $6,559 Advances from General Partner - - Accrued interest due to General Partner 527 527 Deposits and other liabilities 216 249 - ------------------------------------------------------------------------------- Total liabilities 7,195 7,335 - ------------------------------------------------------------------------------- Partners' capital (deficit): Limited partners, 21,585 units issued and 897 766 outstanding General Partner (435) (440) - ------------------------------------------------------------------------------- Total partners' capital (deficit) 432 326 - ------------------------------------------------------------------------------- Total liabilities and partners' capital $7,627 $7,661 (deficit) =============================================================================== The accompanying notes are an integral part of these financial statements. PROPERTY RESOURCES FUND VI (A CALIFORNIA LIMITED PARTNERSHIP) STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997 (Unaudited) (Dollars in thousands, except per 1998 1997 unit amounts) - ----------------------------------------------------------- REVENUE: Rent $512 $507 Interest and dividends 9 10 - ----------------------------------------------------------- Total revenue 521 517 - ----------------------------------------------------------- EXPENSES: Interest, other than related party 51 48 Depreciation 72 75 Operating 244 241 Related party 30 33 General and administrative 18 8 - ----------------------------------------------------------- Total expenses 415 405 - ----------------------------------------------------------- NET INCOME $106 $112 =========================================================== Net income allocable to limited $101 $106 partners =========================================================== Net income allocable to General $5 $6 Partner =========================================================== Net income per $500 limited partnership unit- $4.68 $4.91 based on 21,585 units outstanding =========================================================== The accompanying notes are an integral part of these financial statements. PROPERTY RESOURCES FUND VI (A CALIFORNIA LIMITED PARTNERSHIP) STATEMENTS OF CASH FLOWS FOR THE THREE MONTH PERIODS ENDED MARCH 31, 1998 AND 1997 (Unaudited) (Dollars in thousands) 1998 1997 - ------------------------------------------------------------------------------- Cash flows from operating activities: Net income $106 $112 - ------------------------------------------------------------------------------- Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 75 75 (Increase) decrease in other assets 44 92 Increase in accrued interest - 2 Decrease in deposits and other liabilities (33) (80) - ------------------------------------------------------------------------------- 86 89 - ------------------------------------------------------------------------------- Net cash provided by operating activities 192 201 - ------------------------------------------------------------------------------- Cash flow from investing activities: Improvements to rental property (10) (20) Principal received on note receivable 23 14 - ------------------------------------------------------------------------------- Net cash (used in) provided by investing 13 (6) activities - ------------------------------------------------------------------------------- Origination of note payable - Principal payments on notes payable (107) (107) Principal payments to General Partner - (69) - ------------------------------------------------------------------------------- Net cash used in financing activities (107) (176) - ------------------------------------------------------------------------------- Net increase in cash and cash equivalents 98 19 Cash and cash equivalents, beginning of period 407 279 - ------------------------------------------------------------------------------- Cash and cash equivalents, end of period $505 $298 =============================================================================== The accompanying notes are an integral part of these financial statements. PROPERTY RESOURCES FUND VI (A CALIFORNIA LIMITED PARTNERSHIP) NOTES TO FINANCIAL STATEMENTS MARCH 31, 1998 NOTE 1 - BASIS OF PRESENTATION The accompanying unaudited interim financial statements of Property Resources Fund VI (the "Partnership") have been prepared in accordance with the instructions to Form 10-Q 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. In the opinion of management, all appropriate adjustments necessary to a fair presentation of the results of operations have been made for the periods shown. All adjustments are of a normal recurring nature. Certain prior year amounts have been reclassified to conform to current year presentations. These financial statements should be read in conjunction with the Partnership's audited financial statements for the year ended December 31, 1997. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS INTRODUCTION Management's discussion and analysis of financial condition and results of operations should be read in conjunction with the Financial Statements and Notes thereto. RESULTS OF OPERATIONS COMPARISON OF THE THREE-MONTH PERIODS ENDED MARCH 31, 1998 AND 1997 Net income for the three-month periods ended March 31, 1998 decreased $6,000, or 5%, when compared to 1997 primarily as a result of increased general and administrative expenses. Total revenue for the three-month periods ended March 31, 1998 increased $4,000, or 1% when compared to 1997. Both Grouse Run and Clearlake Village experienced slight increases in rental revenues during the period. Total expenses for the three-month periods ended March 31, 1998 increased $10,000, or 2%, when compared to 1997 as a result of increases in general and administrative expenses primarily accounting services. A small increase in property operating expenses, which was due to increased repair and maintenance costs, was offset by a decrease in interest expense, as the note payable to the General Partner was repaid in 1997. LIQUIDITY AND CAPITAL RESOURCES In July, 1983, the Partnership completed a public offering of its limited partnership units with total proceeds of $10,795,500 from the sale of 21,585 limited partnership units. The Partnership acquired five properties with an aggregate cost of $23,526,000. As of March 31, 1998 the Partnership had two operating properties: Clearlake Village Apartments and Grouse Run Apartments. The buildings and the land upon which the buildings are located are owned directly by the Partnership or the Subsidiary, as herein after defined, in fee. Both Partnership properties are subject to mortgages. Management is currently marketing the properties for sale, and a sale of one or both of the properties may occur in 1998. Management estimates that the net realizable value of the property approximates its carrying value; however, there can be no assurance that the eventual sales price of the property will not result in a loss or that a sale will be consummated. As of March 31, 1998, cash and cash equivalents totaled $505,000. As of March 31, 1998, accrued interest due to General Partner amounted to $527,000. The General Partner presently intends to continue to make such advances to the Partnership as necessary. Consequently, management believes that the Partnership's current sources of funds will be adequate to meet both its short-term and long-term capital commitments and operating requirements. PROPERTY RESOURCES FUND VI (A CALIFORNIA LIMITED PARTNERSHIP) ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) LIQUIDITY AND CAPITAL RESOURCES (CONTINUED) The Partnership presently believes that funds available from operations and from its note receivable due in 1999 will permit it to repay interest owed to the General Partner. The Partnership also believes that the present trend toward improved operations at its properties will permit it to repay the Grouse Run note payable due in 1999 either from the sale of a property or from a loan refinancing. Net cash provided by operating activities for the three month period ended March 31, 1998 was $192,000, or $9,000 less than the same period in 1997. The decrease was primarily due to a decrease in net income as described under "Results of Operations". Net cash provided by investing activities for the three month period ended March 31, 1998, increased $19,000 when compared to the same period in 1997. In 1998, the Partnership received $9,000 more principle repayments on the note secured on Dell and spent $10,000 less on capital improvements than in the corresponding period in 1997. IMPACT OF INFLATION The Partnership's management believes that inflation may have a positive effect on the Partnership's property portfolio, but this effect generally will not be fully realized until such properties are sold or exchanged. PROPERTY RESOURCES FUND VI (A CALIFORNIA LIMITED PARTNERSHIP) PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Not applicable (b) Reports on Form 8-K No reports on Form 8-K were filed by the Registrant during the quarter ended March 31, 1998. SIGNATURE 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. PROPERTY RESOURCES FUND VI By: /s/ David P. Goss Chief Executive Officer Date: May 15, 1998 -----END PRIVACY-ENHANCED MESSAGE-----