-----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, DbD8ubWqhP+939WQTabVDamhA8xXxwKllK1Kao5/C0dr9k8aC2FK71Hn2UCUK+2d FpqWCXL7yqgFadMe3MrdEw== 0000355804-97-000001.txt : 19970512 0000355804-97-000001.hdr.sgml : 19970512 ACCESSION NUMBER: 0000355804-97-000001 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970509 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONSOLIDATED CAPITAL PROPERTIES VI CENTRAL INDEX KEY: 0000755908 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 942940204 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-14099 FILM NUMBER: 97599710 BUSINESS ADDRESS: STREET 1: ONE INSIGNIA FINANCIAL PLZ STREET 2: POST OFFICE BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 BUSINESS PHONE: 2147020027 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 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 March 31, 1997 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period.........to......... Commission file number 0-14099 CONSOLIDATED CAPITAL PROPERTIES VI (Exact name of small business issuer as specified in its charter) California 94-2940204 (State or other jurisdiction of (IRS 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 Exchange Act during the past 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) CONSOLIDATED CAPITAL PROPERTIES VI CONSOLIDATED BALANCE SHEET (Unaudited) (in thousands, except unit data) March 31, 1997 Assets Cash and cash equivalents: Unrestricted $ 1,491 Restricted - tenant security deposits 85 Investments 305 Accounts receivable 33 Escrows for taxes and insurance 130 Restricted escrows 90 Other assets 115 Investment properties: Land $ 1,652 Buildings and personal property 15,054 16,706 Less accumulated depreciation (7,332) 9,374 $11,623 Liabilities and Partners' Capital (Deficit) Liabilities Accounts payable $ 224 Tenant security deposits 85 Accrued taxes 130 Other liabilities 224 Mortgage notes payable 10,134 Partners' Capital (Deficit) General partner $ (6) Special limited partners (59) Limited partners (181,288 units issued and outstanding) 891 826 $11,623 See Accompanying Notes to Consolidated Financial Statements b) CONSOLIDATED CAPITAL PROPERTIES VI CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except unit data) Three Months Ended March 31, 1997 1996 Revenues: Rental income 763 $ 746 Other income 67 70 Total revenues 830 816 Expenses: Operating 332 307 General and administrative 38 38 Maintenance 94 114 Depreciation 182 173 Interest 235 210 Property taxes 73 66 Total expenses 954 908 Net loss (124) $ (92) Net loss allocated to general partner (.2%) -- $ -- Net loss allocated to limited partners (99.8%) (124) (92) (124) $ (92) Net loss per limited partnership unit: (.68) $ (.51) See Accompanying Notes to Consolidated Financial Statements c) CONSOLIDATED CAPITAL PROPERTIES VI CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT) (Unaudited) For the Three Months Ended March 31, 1997 (in thousands, except unit data) Limited Special Partnership General Limited Limited Units Partner Partners Partners Total Original capital contributions 181,808 $ 1 $ -- $ 45,452 $45,453 Partners' capital (deficit) at December 31, 1996 181,288 $ (6) $ (61) $ 1,017 $ 950 Amortization of timing difference (Note D) -- -- 2 (2) -- Net loss for the three months ended March 31, 1997 -- -- -- (124) (124) Partners' capital (deficit) at March 31, 1997 181,288 $ (6) $ (59) $ 891 $ 826 See Accompanying Notes to Consolidated Financial Statements d) CONSOLIDATED CAPITAL PROPERTIES VI CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) Three Months Ended March 31, 1997 1996 Cash flows from operating activities: Net loss $ (124) $ (92) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation 182 173 Amortization of loan costs and discounts 57 57 Change in accounts: Restricted cash 3 (5) Accounts receivable (3) 6 Escrows for taxes and insurance (22) (21) Other assets 9 192 Accounts payable 21 (134) Tenant security deposit liabilities (3) 2 Accrued taxes 16 12 Other liabilities (4) (46) Net cash provided by operating activities 132 144 Cash flows from investing activities: Property improvements and replacements (42) (74) Deposits to restricted escrows (22) (24) Receipts from restricted escrows -- 120 Net cash (used in) provided by investing activities (64) 22 Cash flows from financing activities: Payments on mortgage notes payable (55) (51) Net cash used in financing activities (55) (51) Net increase in cash and cash equivalents 13 115 Cash and cash equivalents at beginning of period 1,478 1,311 Cash and cash equivalents at end of period $1,491 $1,426 Supplemental disclosure of cash flow information: Cash paid for interest $ 173 $ 191 See Accompanying Notes to Consolidated Financial Statements e) CONSOLIDATED CAPITAL PROPERTIES VI NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE A - BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements of Consolidated Capital Properties VI ("the Partnership") have been prepared in accordance with generally accepted accounting principles for interim financial information 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 ConCap Equities, Inc. (the "General Partner"), all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 1997, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 1997. For further information, refer to the consolidated financial statements and footnotes thereto included in the Partnership's annual report on Form 10-KSB for the fiscal year ended December 31, 1996. Investments Investments consisting primarily of U.S. Treasury Notes with original maturities of more than ninety days, are considered to be held-to-maturity securities. 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 of the Partnership activities, as provided in the Partnership agreement. The Partnership has paid property management fees based upon collected gross rental revenues for property management services in each of the three months ended March 31, 1997 and 1996. Property management fees of approximately $40,000 and $39,000 were paid to affiliates of the General Partner for the three months ended March 31, 1997 and 1996, respectively. These property management fees are included in operating expenses. The Partnership Agreement also provides for reimbursement to the General Partner and its affiliates for costs incurred in connection with the administration of Partnership activities. Reimbursements for services of affiliates of approximately $26,000 and $25,000 were paid to the General Partner and its affiliates for the three months ended March 31, 1997 and 1996, respectively. These reimbursements are primarily included in general and administrative expenses. In July 1995, the Partnership began insuring its properties 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 payment 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. NOTE C - COMMITMENT The Partnership is required to maintain working capital reserves for contingencies of not less than 5% of Net Invested Capital as defined in the Partnership Agreement. In the event expenditures are made from these reserves, operating revenue shall be allocated to such reserves to the extent necessary to maintain the foregoing level. Cash and cash equivalents, tenant security deposits and investments, totaling approximately $1,881,000, are less than the reserve requirement of approximately $2,266,000 at March 31, 1997. The Partnership intends to replenish working capital reserves from cash flow from operations after consideration of any capital improvement needs of the properties. The working capital requirement must be met prior to any consideration for distributions to the partners. NOTE D - CHANGE IN STATUS OF NON-CORPORATE GENERAL PARTNER During the year ended December 31, 1991, the Partnership Agreement was amended to convert the General Partner interests held by the non-corporate General Partner, Consolidated Capital Group II ("CCG"), to that of a special Limited Partner ("Special Limited Partner"). The Special Limited Partner does not have a vote and does not have any of the other rights of a Limited Partner except the right to inspect the Partnership's books and records; however, the Special Limited Partner will retain the economic interest in the Partnership which it previously owned as general partner. ConCap Equities, Inc. ("CEI") became the sole general partner of the Partnership effective December 31, 1991. In connection with CCG's conversion, a special allocation of gross income was made to the Special Limited Partner in order to eliminate its tax basis negative capital account. After the conversion, the various Special Limited Partners transferred portions of their interests to CEI so that CEI now holds a .2% interest in all allocable items of income, loss and distribution. The difference between the Special Limited Partner's capital accounts for financial statement and tax reporting purposes is being amortized to the Limited Partners' capital account as the components of the timing differences which created the balance reverse. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION The Partnership's investment properties consist of two apartment complexes. The following table sets forth the average occupancy of the properties for the six months ended March 31, 1997 and 1996: Occupancy for the Six Months Ended March 31, 1997 1996 Celina Plaza Apartments El Paso, Texas 89% 88% Colony of Springdale Apartments Springdale, Ohio 90% 88% The Partnership realized a net loss of approximately $124,000 for the three months ended March 31, 1997, compared to a net loss of approximately $92,000 for the three months ended March 31, 1996. The increased net loss is due primarily to increased operating and interest expenses, partially offset by decreased maintenance expenses and increased rental revenues. Rental revenues increased slightly due to rental rate increases and an increase in occupancy resulting from ongoing property improvements at both Celina Plaza Apartments and Colony of Springdale Apartments. Operating expenses increased primarily due to higher utility costs at Colony of Springdale. The increase in interest expense resulted from increased cash flow payments on the third mortgage wrap note secured by Celina Plaza. Maintenance expenses were higher during the three months ended March 31, 1996 due to extensive painting being done at Celina Plaza. Included in maintenance expenses is approximately $5,000 of repairs and maintenance comprised primarily of repairs to one unit at Celina Plaza due to minor fire damage, which was not covered by insurance, for the three months ended March 31, 1997. For the three months ended March 31, 1996, approximately $10,000 of repairs and maintenance comprised primarily of exterior building improvements are included in maintenance expenses. As part of the ongoing business plan of the Partnership, the General Partner monitors the rental market environment of each of its investment properties to assess the feasibility of increasing rents, maintaining or increasing occupancy levels and protecting the Partnership from increases in expenses. As part of this plan, the General Partner attempts to protect the Partnership from the burden of inflation-related increases in expenses by increasing rents and maintaining a high overall occupancy level. However, due to changing market conditions, which can result in the use of rental concessions and rental reductions to offset softening market conditions, there is no guarantee that the General Partner will be able to sustain such a plan. At March 31, 1997, the Partnership held unrestricted cash and cash equivalents of approximately $1,491,000 compared to approximately $1,426,000 at March 31, 1996. Net cash provided by operating activities decreased slightly due to increased operating expenses and interest expense. Net cash used in investing activities decreased due to non-recurring receipts received in 1996 from the replacement reserve for improvements made at the Colony of Springdale Apartments favorably impacting 1996 cash flows. The Partnership is required to maintain working capital reserves for contingencies of not less than 5% of Net Invested Capital as defined in the Partnership Agreement. In the event expenditures are made from these reserves, operating revenue shall be allocated to such reserves to the extent necessary to maintain the foregoing level. Cash and cash equivalents, tenant security deposits and investments, totaling approximately $1,881,000, are less than the reserve requirement of approximately $2,266,000 at March 31, 1997. The Partnership intends to replenish working capital reserves from cash flow from operations after consideration of any capital improvement needs of the properties. The working capital requirement must be met prior to any consideration for distributions to the partners. The sufficiency of existing liquid assets to meet future liquidity and capital expenditure requirements is directly related to the level of capital expenditures required at the property to adequately maintain the physical assets and other operating needs of the Partnership. Such assets are currently thought to be sufficient for any near-term needs of the Partnership. The mortgage indebtedness of approximately $10,134,000, net of discounts, matures at various times with balloon payments due at maturity, at which time the properties will either be sold or the mortgages refinanced. Future cash distributions will depend on the levels of cash generated from operations, capital expenditure requirements, property sales and the availability of cash reserves. The mortgage indebtedness of approximately $5,681,000, net of discount, secured by Celina Plaza, matures in July of 1997. The General Partner is currently in negotiations with the existing lender to obtain a workout on these mortgages and is also exploring the possibility of refinancing this debt. There can be no assurance, however that these negotiations will be successful. No cash distributions were declared or paid during the first three months of 1997 or 1996. 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. SIGNATURES In accordance with the requirements of the Exchange Act, the Partnership caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CONSOLIDATED CAPITAL PROPERTIES VI By: CONCAP EQUITIES, INC. General Partner By: /s/William H. Jarrard, Jr. William H. Jarrard, Jr. President By: /s/Ronald Uretta Ronald Uretta Vice President/Treasurer Date: May 9, 1997 EX-27 2
5 This schedule contains summary financial information extracted from Consolidated Capital Properties VI 1997 First Quarter 10-QSB and is qualified in its entirety by reference to such 10-QSB filing. 0000755908 CONSOLIDATED CAPITAL PROPERTIES VI 1,000 3-MOS DEC-31-1997 MAR-31-1997 1,491 0 33 0 0 0 16,706 7,332 11,623 0 10,134 0 0 0 826 11,623 0 830 0 954 0 0 235 0 0 0 0 0 0 (124) (.68) 0 Partnership has an unclassified balance sheet. Multiplier is 1.
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