-----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, RPRc7CxWTpZhszxkQK1gp8Yk2CHYMeW7DZxiT6mU+onHbntWEYEKe2LuxaW35s39 Jk0lawwj6Uw+CGRVV/bSHA== /in/edgar/work/0001095811-00-004334/0001095811-00-004334.txt : 20001108 0001095811-00-004334.hdr.sgml : 20001108 ACCESSION NUMBER: 0001095811-00-004334 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000930 FILED AS OF DATE: 20001107 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DEL TACO RESTAURANT PROPERTIES I CENTRAL INDEX KEY: 0000711213 STANDARD INDUSTRIAL CLASSIFICATION: [6500 ] IRS NUMBER: 953852699 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-16191 FILM NUMBER: 754137 BUSINESS ADDRESS: STREET 1: 23041 AVENIDA DE LA CARLOTA, SUITE 400 CITY: LAGUNA HILLS STATE: CA ZIP: 92653 BUSINESS PHONE: 714 462-9300 MAIL ADDRESS: STREET 1: 1800 W KATELLA AVENUE CITY: ORANGE STATE: CA ZIP: 92667 10-Q 1 a66764e10-q.txt FORM 10-Q PERIOD ENDED 9/30/2000 1 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2000 . 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 NO. 2-80930 DEL TACO RESTAURANT PROPERTIES I A CALIFORNIA LIMITED PARTNERSHIP (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) CALIFORNIA 95-3852699 (STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER INCORPORATION OR ORGANIZATION) IDENTIFICATION NUMBER) 23041 AVENIDA DE LA CARLOTA, LAGUNA HILLS, CALIFORNIA 92653 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(949) 462-9300 (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) 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 [ ] - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 2 INDEX DEL TACO RESTAURANT PROPERTIES I
PART I. FINANCIAL INFORMATION PAGE NUMBER - ------------------------------ ----------- Item 1. Financial Statements and Supplementary Data Balance Sheets at September 30, 2000 (Unaudited) and December 31, 1999 3 Statements of Income for the three and nine months ended September 30, 2000 and 1999 (Unaudited) 4 Statements of Cash Flows for the nine months ended September 30, 2000 and 1999 (Unaudited) 5 Notes to Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K 10 SIGNATURES 11
-2- 3 DEL TACO RESTAURANT PROPERTIES I BALANCE SHEETS
SEPTEMBER 30, December 31, 2000 1999 ------------- ------------ (UNAUDITED) ASSETS CURRENT ASSETS: Cash $ 201,482 $ 170,290 Receivable from General Partner 51,484 46,970 Deposits 600 600 ---------- ---------- Total current assets 253,566 217,860 ---------- ---------- PROPERTY AND EQUIPMENT, AT COST: Land and improvements 1,852,482 1,852,482 Buildings and improvements 1,013,134 1,013,134 Machinery and equipment 1,136,026 1,136,026 ---------- ---------- 4,001,642 4,001,642 Less--accumulated depreciation 1,792,688 1,759,859 ---------- ---------- 2,208,954 2,241,783 ---------- ---------- $2,462,520 $2,459,643 ========== ========== LIABILITIES AND PARTNERS' EQUITY CURRENT LIABILITIES: Payable to Limited Partners $ 40,829 $ 31,001 Accounts payable 10,000 7,828 ---------- ---------- Total current liabilities 50,829 38,829 ---------- ---------- PARTNERS' EQUITY: Limited Partners 2,147,477 2,156,509 General Partner-Del Taco, Inc. 264,214 264,305 ---------- ---------- 2,411,691 2,420,814 ---------- ---------- $2,462,520 $2,459,643 ========== ==========
The accompanying notes are an integral part of these financial statements -3- 4 DEL TACO RESTAURANT PROPERTIES I STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended Nine Months Ended September 30, September 30, 2000 1999 2000 1999 -------- -------- -------- -------- REVENUES: Rent $155,809 $141,151 $434,944 $397,688 Interest 1,784 1,222 4,151 3,304 Other 350 353 725 953 -------- -------- -------- -------- 157,943 142,726 439,820 401,945 -------- -------- -------- -------- EXPENSES: General and administrative 7,311 7,199 38,186 38,225 Depreciation 10,943 10,943 32,829 32,829 -------- -------- -------- -------- 18,254 18,142 71,015 71,054 -------- -------- -------- -------- Net income $139,689 $124,584 $368,805 $330,891 ======== ======== ======== ======== Net income per limited partnership unit $ 15.80 $ 14.09 $ 41.72 $ 37.43 ======== ======== ======== ========
-4- The accompanying notes are an integral part of these financial statements. 5 DEL TACO RESTAURANT PROPERTIES I STATEMENTS OF CASH FLOWS (UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 30, 2000 1999 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 368,805 $ 330,891 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 32,829 32,829 (Increase) decrease in receivable from General Partner (4,514) 2,179 Decrease in deposits - 113 Increase in accounts payable and payable to limited partners 12,000 252 --------- --------- Net cash provided by operating activities 409,120 366,264 CASH FLOWS FROM FINANCING ACTIVITIES: Cash distributions to partners (377,928) (363,958) --------- --------- Net increase in cash 31,192 2,306 Beginning cash balance 170,290 162,979 --------- --------- Ending cash balance $ 201,482 $ 165,285 ========= =========
-5- The accompanying notes are an integral part of these financial statements. 6 DEL TACO RESTAURANT PROPERTIES I NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2000 NOTE 1 - BASIS OF PRESENTATION The accompanying financial statements, some of which are unaudited, have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements and should therefore be read in conjunction with the financial statements and notes thereto contained in the Registrant's annual report on Form 10-K for the year ended December 31, 1999. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the partnership's financial position at September 30, 2000, the results of operations and cash flows for the nine month periods ended September 30, 2000 and 1999 have been included. Operating results for the three and nine months ended September 30, 2000 are not necessarily indicative of the results that may be expected for the year ending December 31, 2000. NOTE 2 - NET INCOME PER LIMITED PARTNERSHIP UNIT Net income per limited partnership unit is based upon the weighted average number of units outstanding during the periods presented, which amounted to 8,751 in 2000 and 1999. Pursuant to the partnership agreement, annual partnership net income is allocated one percent to the General Partner and 99 percent to the limited partners. A partnership net loss in any year will be allocated 24 percent to the General Partner and 76 percent to the limited partners until the losses so allocated equal income previously allocated. Any additional losses will be allocated one percent to the General Partner and 99 percent to the limited partners. Partnership gains from any sale or refinancing will be allocated one percent to the General Partner and 99 percent to the limited partners until allocated gains and profits equal losses. Additional gains will be allocated 24 percent to the General Partner and 76 percent to the limited partners. -6- 7 DEL TACO RESTAURANT PROPERTIES I NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 2000 NOTE 3 - LEASING ACTIVITIES The partnership leases certain properties for operation of restaurants to Del Taco, Inc. on a triple net basis. The leases are for terms of 35 years commencing with the completion of the restaurant facility located on each property and require monthly rentals equal to 12 percent of the gross sales of the restaurants. There is no minimum rental under any of the leases. For the three months ended September 30, 2000, the five restaurants operated by Del Taco, for which the partnership is the lessor, had combined, unaudited sales of $1,079,113 and net income of $68,143 as compared to $977,544 and $61,546 respectively, for the corresponding period in 1999. Net income by restaurant includes charges for general and administrative expenses incurred in connection with supervision of restaurant operations and interest expense. For the three months ended September 30, 2000, the one restaurant operated by a Del Taco franchisee, for which the partnership is the lessor, had unaudited sales of $219,297 as compared with $198,717 during the same period in 1999. For the nine months ended September 30, 2000, the five restaurants operated by Del Taco, for which the partnership is the lessor, had combined, unaudited sales of $3,013,010 and net income of $173,243 as compared to $2,756,556 and $140,234 respectively, for the corresponding period in 1999. For the nine months ended September 30, 2000, the one restaurant operated by a Del Taco franchisee, for which the partnership is the lessor, had unaudited sales of $611,520 as compared with $557,517 during the same period in 1999. For the three months and nine months ended September 30, 2000, the Elkhorn Boulevard restaurant in Sacramento, California reported net income of $4,058 and $871 as compared to net losses of $1,986 and $6,927 for the corresponding periods in 1999. NOTE 4 - TRANSACTIONS WITH DEL TACO The receivable from General Partner consists primarily of rent accrued for the month of September. The September rent receivable was collected on October 13, 2000. Del Taco, Inc. serves in the capacity of general partner in other partnerships which are engaged in the business of operating restaurants, and three other partnerships which were formed for the purpose of acquiring real property in California for construction of Mexican-American restaurants for lease under long-term agreements to Del Taco, Inc. for operation under the Del Taco trade name. In addition, see Note 5 with respect to certain distributions to the General Partner. NOTE 5 - DISTRIBUTIONS On October 13, 2000, a distribution to the limited partners of $154,097, or approximately $17.61 per limited partnership unit, was approved. Such distribution was paid on October 18, 2000. The General Partner also received a distribution of $1,557 with respect to its 1% partnership interest. -7- 8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources The partnership offered limited partnership units for sale between March 1983 and March 1984. 15% of the $4.375 million raised through sale of limited partnership units was used to pay commissions to brokers and to reimburse the General Partner for offering costs incurred. Approximately $4 million of the remaining funds were used to acquire sites and build six restaurants. The six restaurants leased to Del Taco make up almost all of the income producing assets of the partnership. Therefore, the business of the partnership is almost entirely dependent on the success of the Del Taco trade name restaurants that lease the properties. The success of the restaurants is dependent on a large variety of factors, including, but not limited to, consumer demand and preference for fast food, in general, and for Mexican-American food in particular. Results of Operations The partnership owns six properties that are under long-term lease to Del Taco for restaurant operations (Del Taco, in turn, has subleased two of the restaurants to Del Taco franchisees, one of which is affiliated with Del Taco). The following table sets forth rental revenue earned by restaurant for the year:
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2000 1999 2000 1999 -------- -------- -------- -------- Riverside Avenue, Rialto, CA $ 23,008 $ 22,671 $ 66,464 $ 64,123 Elden Avenue, Moreno Valley, CA 25,134 20,736 71,304 59,543 Foothill Boulevard, La Verne, CA 33,202 30,650 91,317 86,111 Baseline & Archibald, Rancho Cucamonga, CA 26,316 23,846 73,382 66,902 Elkhorn Boulevard, Sacramento, CA 18,274 16,233 48,496 45,140 Haven Avenue, Rancho Cucamonga, CA 29,875 27,015 83,981 75,869 -------- -------- -------- -------- Total $155,809 $141,151 $434,944 $397,688 ======== ======== ======== ========
The partnership receives rental revenues equal to 12 percent of gross sales from the restaurants. The partnership earned rental revenue of $155,809 during the three month period ended September 30, 2000, which represents an increase of $14,658 from 1999. The partnership earned rental revenue of $434,944 during the nine month period ended September 30, 2000, which represents an increase of $37,256 from 1999. The changes in rental revenue between 1999 and 2000 are directly attributable to increases in sales levels at the restaurants under lease. -8- 9 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CONTINUED The following table breaks down general and administrative expenses by type of expense:
Percentage of Total General & Administrative Expense -------------------------------- Nine Months Ended September 30, 2000 1999 ------- ------ Accounting fees 59.90% 67.68% Distribution of information to Limited Partners 40.10 32.32 ------ ------ 100.00% 100.00% ====== ======
For the three month period ended September 30, 2000, net income increased $15,105 from 1999 to 2000 due to the increase in revenues of $15,217 which was partially offset by the $112 increase in general and administrative expenses. For the nine month period ended September 30, 2000, net income increased by $37,914 from 1999 to 2000 due to the increase in revenues of $37,875 and the $39 decrease in general and administrative expenses. -9- 10 PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (b) No reports on Form 8-K were filed during the nine months ended September 30, 2000. -10- 11 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. DEL TACO RESTAURANT PROPERTIES I (a California limited partnership) Registrant Del Taco, Inc. General Partner Date: October 31, 2000 /s/ Robert J. Terrano ---------------------------- Robert J. Terrano Executive Vice President, Chief Financial Officer Date: October 31, 2000 /s/ C. Douglas Mitchell ---------------------------- C. Douglas Mitchell Vice President and Corporate Controller -11- 12 EXHIBIT INDEX
Exhibit Number Description - ------- ----------- 27.1 Financial Data Schedule
-12- EX-27.1 2 a66764ex27-1.txt FINANCIAL DATA SCHEDULE
5 9-MOS DEC-31-2000 JAN-01-2000 SEP-30-2000 201,482 600 51,484 0 0 253,566 4,001,642 1,792,688 2,462,520 50,829 0 0 0 0 2,411,691 2,462,520 0 439,820 0 71,015 0 0 0 368,805 0 368,805 0 0 0 368,805 41.72 41.72
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