-----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, CESbXsNZfm0jOjCFy+WOl80JRzLRWFsIEm/W4vvueYoRdndinQ5DvRal+yIna87c gYooxt4+IZbdDY/zswabuQ== 0000737876-99-000010.txt : 19990812 0000737876-99-000010.hdr.sgml : 19990812 ACCESSION NUMBER: 0000737876-99-000010 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990811 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FAMOUS HOST LODGING V LP CENTRAL INDEX KEY: 0000737876 STANDARD INDUSTRIAL CLASSIFICATION: HOTELS & MOTELS [7011] IRS NUMBER: 942933595 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-14540 FILM NUMBER: 99683783 BUSINESS ADDRESS: STREET 1: 2030 J ST CITY: SACRAMENTO STATE: CA ZIP: 95814 BUSINESS PHONE: 9164429183 MAIL ADDRESS: STREET 1: 2030 J STREET STREET 2: 2030 J STREET CITY: SACRAMENTO STATE: CA ZIP: 95814 FORMER COMPANY: FORMER CONFORMED NAME: SUPER 8 LODGING V LTD DATE OF NAME CHANGE: 19910331 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Quarterly Report Under Section 13 or 15(d) of The Securities Exchange Act of 1934 For the Period ended June 30, 1999 Commission File 0-14540 FAMOUS HOST LODGING V, L.P. (Exact name of registrant as specified in its charter) CALIFORNIA 94-2933595 - ------------------------------- ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 2030 J Street Sacramento, California 95814 - -------------------------------------- ---------- Address of principle executive offices Zip Code Registrant's telephone number, Including area code (916) 442 - 9183 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 XX No __ FAMOUS HOST LODGING V, L.P. (A California Limited Partnership) FINANCIAL STATEMENTS JUNE 30, 1999 AND 1998 FAMOUS HOST LODGING V, L.P. (A California Limited Partnership) INDEX Financial Statements: PAGE Balance Sheet - June 30, 1999 and December 31, 1998 2 Statement of Operations - Six Months Ended June 30, 1999 and 1998 3 Statement of Changes in Partners' Equity - Six Months Ended June 30, 1999 and 1998 4 Statement of Cash Flows - Six Months Ended June 30, 1999 and 1998 5 Notes to Financial Statements 6 - 7 Management Discussion and Analysis 8 - 9 Other Information and Signatures 10 - 11 Famous Host Lodging V, L.P. (A California Limited Partnership) Balance Sheet June 30, 1999 and December 31, 1998 6/30/99 12/31/98 ---------- ---------- ASSETS Current Assets: Cash and temporary investments $ 516,507 $ 370,184 Accounts receivable 120,547 56,717 Prepaid expenses 12,037 31,028 ---------- ---------- Total current assets 649,091 457,929 ---------- ---------- Property and Equipment: Buildings 4,077,604 4,077,604 Furniture and equipment 1,339,197 1,342,104 ---------- ---------- 5,416,801 5,419,708 Accumulated depreciation (3,540,132) (3,433,032) ---------- ---------- Property and equipment, net 1,876,669 1,986,676 ---------- ---------- Other Assets: 107,832 32,294 ---------- ---------- Total Assets $ 2,633,592 $ 2,476,899 ========== ========== LIABILITIES AND PARTNERS' EQUITY Current Liabilities: Accounts payable and accrued liabilities $ 193,743 $ 145,818 ---------- ---------- Total liabilities 193,743 145,818 ---------- ---------- Contingent Liabilities (See Note 1) Partners' Equity: Limited Partners: 10,000 units authorized, 9,022 issued and outstanding 2,433,772 2,326,092 General Partners 6,077 4,989 ---------- ---------- Total partners' equity 2,439,849 2,331,081 ---------- ---------- Total Liabilities and Partners' Equity $ 2,633,592 $ 2,476,899 ========== ========== The accompanying notes are an integral part of the financial statements. - 2 - Famous Host Lodging V, L.P. (A California Limited Partnership) Statement of Operations For the Six Months Ending June 30, 1999 and 1998 Three Months Six Months Three Months Six Months Ended Ended Ended Ended 6/30/99 6/30/99 6/30/98 6/30/98 ---------- ---------- ---------- ---------- Income: Hotel room $ 720,625 $ 1,343,176 $ 664,962 $ 1,317,738 Restaurant 74,575 143,154 104,095 239,119 Telephone and vending 10,061 17,843 10,949 23,943 Interest 2,159 5,260 857 1,649 Other 15,150 28,974 16,353 29,645 ---------- ---------- ---------- ---------- Total Income 822,570 1,538,407 797,216 1,612,094 ---------- ---------- ---------- ---------- Expenses: Motel operating expenses (Note 2) 423,174 885,037 471,901 933,492 Restaurant operations (Note 2) 106,325 214,530 124,371 299,933 General and administrative 78,550 143,753 (68,347) 84,130 Depreciation and amortization 54,756 109,672 65,495 130,611 Property management fees 41,049 76,647 39,527 80,045 ---------- ---------- ---------- ---------- Total Expenses 703,854 1,429,639 632,947 1,528,211 ---------- ---------- ---------- ---------- Net Income (Loss) $ 118,716 $ 108,768 $ 164,269 $ 83,883 ========== ========== ========== ========== Net Income (Loss) Allocable to Limited Partners $117,529 $107,680 $162,626 $83,044 ========== ========== ========== ========== Net Income (Loss) Allocable to General Partners $1,187 $1,088 $1,643 $839 ========== ========== ========== ========== Net Income (Loss) per Partnership Unit $13.03 $11.94 $18.03 $9.20 ========== ========== ========== ========== Distribution to Limited Partners per Partnership Unit $0.00 $0.00 $9.20 $9.20 ========== ========== ========== ========== The accompanying notes are an integral part of the financial statements. - 3 - Famous Host Lodging V, L.P. (A California Limited Partnership) Statement of Changes in Partners' Equity For the Six Months Ending June 30, 1999 and 1998 1999 1998 ---------- ---------- Limited Partners: Balance at beginning of year 2,326,092 2,250,315 Net income (loss) 107,680 83,044 Distributions to limited partners - (83,002) ---------- ---------- Balance at end of period 2,433,772 2,250,357 ---------- ---------- General Partners: Balance at beginning of year $ 4,989 $ 3,385 Net income (loss) 1,088 839 ---------- ---------- Balance at end of period 6,077 4,224 ---------- ---------- Total Partners' Equity $ 2,439,849 $ 2,254,581 ========== ========== The accompanying notes are an integral part of the financial statements. - 4 - Famous Host Lodging V, L.P. (A California Limited Partnership) Statement of Cash Flows For the Six Months Ending June 30, 1999 and 1998 1999 1998 ---------- ---------- Cash flows from operating activities: Received from hotel and restaurant revenues $ 1,469,317 $ 1,605,082 Expended for hotel and restaurant operation and general and administrative expenses (1,323,679) (1,380,463) Interest received 5,260 1,649 ---------- ---------- Net cash provided (used) by operating activities 150,898 226,268 ---------- ---------- Cash flows from investing activities: Purchases of property and equipment (4,575) (13,970) Proceeds from sale of equipment - - ---------- ---------- Net cash provided (used) by investing activities (4,575) (13,970) ---------- ---------- Cash flows from financing activities: Distributions paid to limited partners - (83,002) ---------- ---------- Net cash provided (used) by operating activities - (83,002) ---------- ---------- Net increase (decrease) in cash and temporary investments 146,323 129,296 Cash and Temporary Investments: Beginning of year 370,184 146,113 ---------- ---------- End of Period $ 516,507 $ 275,409 ========== ========== Reconciliation of net income to net cash provided by operating activities: Net income (loss) $ 108,768 $ 83,883 ---------- ---------- Adjustments to reconcile net income to net cash used by operating activities: Depreciation and amortization 109,672 130,611 (Gain) loss on disposition of property and equipment 4,909 - (Increase) decrease in accounts receivable (63,830) (5,363) (Increase) decrease in prepaid expenses 18,991 6,935 (Increase) decrease in other assets (75,538) - Increase (decrease) in accounts payable and accrued liabilities 47,926 10,202 ---------- ---------- Total adjustments 42,130 142,385 ---------- ---------- Net cash provided (used) by operating activities $ 150,898 $ 226,268 ========== ========== The accompanying notes are an integral part of the financial statements. - 5 - Famous Host Lodging V, L.P. (A California Limited Partnership) Notes to Financial Statements June 30, 1999 and 1998 Note 1: The attached interim financial statements include all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the period presented. Users of these interim financial statements should refer to the audited financial statements for the year ended December 31, 1998 for a complete disclosure of significant accounting policies and practices and other detail necessary for a fair presentation of the financial statements. In accordance with the partnership agreement, the following information is presented related to fees paid to the General Partners or affiliates for the period. Property Management Fees $76,647 In February, 1991 the Partnership terminated its franchise and its affiliation with Super 8 Motels, Inc. and began operating as a Holiday Inn. Accordingly, no franchise or advertising fees have been paid to the General Partners or their affiliates for the period. Partnership management fees and subordinated incentive distributions are contingent in nature and none have been accrued or paid during the current period. Note 2: The following table summarizes the major components of hotel operating expenses for the periods reported: - 6 - Famous Host Lodging V, L.P. (A California Limited Partnership) Notes to Financial Statements (Continued) June 30, 1999 and 1998 Three Months Six Months Three Months Six Months Ended Ended Ended Ended 6/30/99 6/30/99 6/30/98 6/30/98 ---------- ---------- ---------- ---------- Hotel operating costs: Salaries and related expenses $ 114,244 $ 208,554 $ 124,283 $ 248,928 Rent 69,081 128,853 63,905 126,451 Franchise, advertising and reservation fees 51,394 96,147 47,320 93,853 Utilities 30,927 67,387 29,887 62,255 Allocated costs, mainly indirect salaries 32,614 154,293 47,755 97,516 Renovations and replacements 5,351 12,730 24,813 28,281 Maintenance, repairs and replacements 21,898 37,702 24,001 60,634 Property taxes 15,982 31,964 16,025 32,050 Property insurance 14,315 24,619 10,409 21,064 Other operating expenses 67,368 122,788 83,503 162,460 ---------- ---------- ---------- ---------- Total hotel operating expenses $ 423,174 $ 885,037 $ 471,901 $ 933,492 ========== ========== ========== ========== Restaurant operating costs: Salaries and related expenses $ 46,033 $ 96,936 $ 49,987 $ 125,974 Cost of food and beverage 30,506 59,009 37,292 84,931 Rent 7,540 14,602 10,120 22,896 Utilities 8,423 16,814 9,474 20,013 Property taxes 2,528 5,056 2,630 5,260 Property insurance - 2,267 2,462 4,523 Other operating expenses 11,295 19,846 12,406 36,336 ---------- ---------- ---------- ---------- $ 106,325 $ 214,530 $ 124,371 $ 299,933 ========== ========== ========== ========== There are certain administrative expenses allocated between the Partnership and other partnerships managed by the General Partner and its affiliates. These expenses, which are based on usage, are telephone, data processing, rent of administrative office and administrative salaries. Management believes that the methods used to allocate shared administrative expenses are accurate. The following additional material contingencies are required to be restated in interim reports under federal securities law: None. - 7 - FAMOUS HOST LODGING V, L.P. (A California Limited Partnership) MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION JUNE 30, 1999 LIQUIDITY AND CAPITAL RESOURCES As of June 30, 1999, the Partnership has current assets of $649,091 and current liabilities of $193,743 creating an operating reserve of $455,348. Distributions to the limited partners have been suspended to replenish the operating reserves and in anticipation of the sale of the Barstow hotel and the windup of Partnerships business. The Partnership expended for renovations and replacements $12,730 which is equal to 0.9% of guest room revenue during the period covered by this report. The Partnership has no commitments for additional capital expenditures. RESULTS OF OPERATIONS The following is a comparison of operating results for the six month periods ended June 30, 1999 and June 30, 1998. Total income decreased $73,687 or 4.6%. Hotel room revenues increased $25,438 or 1.9%, due to an increase in the average room rate from $68.77 in 1998 to $73.21 in 1999 and despite a decrease in guest room occupancy from 71.5% in 1998 to 68.5% in 1999. A $95,965 or 40.1% decrease in restaurant revenue was due to a reduction in the restaurant hours of operations from 16 hours daily to 7 hours daily. Total expenditures decreased $98,572 or 6.5%. Restaurant expenses decreased $85,403 or 28.5%. This decrease is associated with the decrease in restaurant hours of operation. Hotel operating expenses decreased $48,455 or 5.2%. Maintenance and repair expenses decreased due to the anticipated sale of the hotel. Allocated expenses increased due to legal fees associated with the proposed sale of the hotel. FUTURE TRENDS The General Partners expect the hotel's performance during 1999 to be substantially unchanged from 1998. Changes in restaurant personnel and procedures are expected to continue bringing improved results. The General Partners expect that these changes will result in a reduction in the net loss experienced by the restaurant operation. The Limited Partners have agreed to sell the motel to Tiburon Hospitality, LLC after a proxy solicitation filed separately with the S.E.C. The dispute with the landlord has been dismissed in arbitration. The remaining factors include negotiations with Holiday Inn, Inc. over transfer of the existing franchise and transferring the liquor license. Upon resolution of these two factors, the sale of the Barstow motel should be completed within thirty days. - 8 - FAMOUS HOST LODGING V, L.P. (A California Limited Partnership) MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION JUNE 30, 1999 (Continued) In 1996 the computers used by the Partnership at the Managing General Partner's offices in Sacramento were updated. In the process of updating its hardware and software, the Managing General Partner eliminated any potential Year 2000 problem with respect to such computers. Similarly, the Managing General Partner does not anticipate any material Year 2000 problem with the computers in use at the motel. The Managing General Partner has not investigated and does not know whether any Year 2000 problems may arise from its third party vendors. Because the motel is a "budget" motel, the Partnership's most significant vendors are its utility providers and banks. To the extent banking services, utility services and other goods and services are unavailable as a result of Year 2000 problems with the computer systems of such vendors or otherwise, the ability of the Partnership to conduct business at its motels would be compromised. No contingency plans have been developed in this regard. In the opinion of management, these financial statements reflect all adjustments which were necessary to a fair statement of results for the interim periods presented. All adjustments are of a normal recurring nature. - 9 - 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 Matter to the Vote of Security Holders None Item 5. Other Information See Notes to Financial Statements Item 6. Exhibits and Reports on Form 8-K None - 10 - SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. FAMOUS HOST LODGING V, L.P. 8-9-99 By /S/ Philip B. Grotewohl Date Philip B. Grotewohl, President of Grotewohl Management Services, Inc., Managing General Partner 8-9-99 By /S/ Philip B. Grotewohl Date Philip B. Grotewohl, Chief executive officer, chief financial officer, chief accounting officer and director of Grotewohl Management Services, Inc., Managing General Partner - 11 - EX-27 2 ARTICLE 5 FIN. DATA SCHEDULE FOR 2ND QTR 10-Q
5 6-MOS DEC-31-1999 JAN-01-1999 JUN-30-1999 516,507 0 120,547 0 0 649,091 5,416,801 3,540,132 2,633,592 193,743 0 0 0 0 2,439,849 2,633,592 1,504,173 1,538,407 1,099,567 1,099,567 330,072 0 0 108,768 0 108,768 0 0 0 108,768 11.94 11.94
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