-----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, LmysVSHT9BSA2OhkH7Bpu4P08oUHIj8CAPy3NyNlv2w1eKZ9zWFImYIChzOh49Gc Kyzv50idnLl8uhVIrwB9Aw== 0000755908-97-000001.txt : 19970806 0000755908-97-000001.hdr.sgml : 19970806 ACCESSION NUMBER: 0000755908-97-000001 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970805 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: 97651371 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 June 30, 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) June 30, 1997
Assets Cash and cash equivalents: Unrestricted $ 1,428 Restricted -- tenant security deposits 78 Investments 302 Accounts receivable 29 Escrows for taxes and insurance 124 Restricted escrows 114 Prepaid and other assets 141 Investment properties: Land $ 1,652 Buildings and personal property 15,062 16,714 Less accumulated depreciation (7,514) 9,200 $ 11,416 Liabilities and Partners' Capital Liabilities Accounts payable $ 57 Tenant security deposits 78 Accrued taxes 147 Other liabilities 244 Mortgage notes payable 10,129 Partners' (Deficit) Capital General partner $ (6) Special limited partner (57) Limited partners (181,288 units issued and outstanding) 824 761 $ 11,416 See Accompanying Notes to Consolidated Financial Statements
b) CONSOLIDATED CAPITAL PROPERTIES VI CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except unit data)
Three Months Six Months Ended June 30, Ended June 30, 1997 1996 1997 1996 Revenues: Rental income $ 731 $ 793 $ 1,494 $ 1,539 Other income 75 64 142 134 Total revenues 806 857 1,636 1,673 Expenses: Operating 266 297 598 604 General and administrative 42 58 80 96 Maintenance 56 108 150 222 Depreciation 183 176 365 349 Interest 251 232 486 442 Property tax 73 69 146 135 Total expenses 871 940 1,825 1,848 Net loss $ (65) $ (83) $ (189) $ (175) Net loss allocated to general partner (.2%) $ -- $ -- $ -- $ -- Net loss allocated to limited partners (99.8%) (65) (83) (189) (175) Net loss $ (65) $ (83) $ (189) $ (175) Net loss per limited partnership unit: $ (.36) $ (.46) $ (1.04) $ (.97) See Accompanying Notes to Consolidated Financial Statements
c) CONSOLIDATED CAPITAL PROPERTIES VI CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT) (Unaudited) (in thousands, except unit data)
Limited Special Partnership General Limited Limited Units Partner Partner Partners Total Original capital contributions 181,808 $ 1 $ -- $45,452 $45,453 Partners' (deficit) capital at December 31, 1996 181,288 $ (6) $ (61) $ 1,017 $ 950 Amortization of timing difference (Note D) -- -- 4 (4) -- Net loss for the six months ended June 30, 1997 -- -- -- (189) (189) Partners' (deficit) capital at June 30, 1997 181,288 $ (6) $ (57) $ 824 $ 761 See Accompanying Notes to Consolidated Financial Statements
d) CONSOLIDATED CAPITAL PROPERTIES VI CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands)
Six Months Ended June 30, 1997 1996 Cash flows from operating activities: Net loss $ (189) $ (175) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation 365 349 Amortization of loan costs and discounts 114 115 Change in accounts: Restricted cash 10 (8) Accounts receivable -- 6 Escrows for taxes and insurance (17) (11) Other assets (22) 181 Accounts payable (146) (137) Tenant security deposit liabilities (10) 7 Accrued taxes 34 27 Other liabilities 16 (49) Net cash provided by operating activities 155 305 Cash flows from investing activities: Property improvements and replacements (50) (120) Proceeds from sale of investments -- 34 Dividends received from investments 3 -- Deposits to restricted escrows (46) (49) Receipts from restricted escrows -- 120 Net cash used in investing activities (93) (15) Cash flows used in financing activities: Payments on mortgage notes payable (112) (103) Net (decrease) increase in unrestricted cash and cash equivalents (50) 187 Unrestricted cash and cash equivalents at beginning of period 1,478 1,311 Unrestricted cash and cash equivalents at end of period $1,428 $1,498 Supplemental disclosure of cash flow information: Cash paid for interest $ 359 $ 342 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 or the "Registrant") 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 and six months ended June 30, 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. Certain reclassifications have been made to the 1996 balances to conform to the 1997 presentation. 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 six months ended June 30, 1997 and 1996. Property management fees of approximately $79,000 and $80,000 were paid to affiliates of the General Partner for the six months ended June 30, 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 $51,000 and $54,000 were paid to the General Partner and its affiliates for the six months ended June 30, 1997 and 1996, respectively. These reimbursements are primarily included in general and administrative expenses. The Partnership insures 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 $1,808,000, are less than the reserve requirement of approximately $2,266,000 at June 30, 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 June 30, 1997 and 1996: 1997 1996 Celina Plaza Apartments El Paso, Texas 88% 91% Colony of Springdale Apartments Springdale, Ohio 89% 91% The Partnership realized a net loss of approximately $65,000 for the three months ended June 30, 1997, and a net loss of approximately $189,000 for the six months ended June 30, 1997, compared to net losses of approximately $83,000 for the three months ended June 30, 1996, and approximately $175,000 for the six months ended June 30, 1996. The increase in net loss for the six months ended June 30, 1997, compared to the six months ended June 30, 1996, is primarily due to a decrease in rental revenues and an increase in interest expense. The increase in net loss was partially offset by a decrease in maintenance expense. Rental income decreased due to a decrease in occupancy at the investment properties. Interest expense increased due to an increase in interest paid on a wrap note secured by Celina Plaza Apartments. Interest payments are based on cash flow, which increased in the first six months of 1997, compared to the corresponding period in 1996. Maintenance expenses decreased due to decreases in interior painting and contract cleaning at Celina Plaza Apartments. Included in maintenance expenses for the six months ended June 30, 1997, is approximately $10,000 of major repairs and maintenance comprised primarily of repairs to one unit at Celina Plaza Apartments due to minor fire damage, which was not covered by insurance. For the six months ended June 30, 1996, approximately $32,000 of repairs and maintenance comprised primarily of major landscaping and interior and exterior building improvements are included in maintenance expense. At June 30, 1997, the Partnership held unrestricted cash and cash equivalents of approximately $1,428,000 compared to approximately $1,498,000 at June 30, 1996. Net cash provided by operating activities decreased primarily due to an increase in other assets, which resulted from increases in prepaid insurance due to the down-payment that was required at the policy renewal in May 1997. This decrease was partially offset by an increase in other liabilities due to the timing of payments. Net cash used in investing activities increased due primarily to decreases in receipts from restricted escrows and due to no investment sales in 1997. These increases in cash uses were partially offset by a decrease in property improvements and replacements. Net cash used in financing activities increased primarily due to an increase in payments of principal on mortgage notes. 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. 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 properties 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 $10,129,000, net of discounts, matures in July 1997 and May 2001 with balloon payments of $9,813,000 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 $5,690,000, net of discount, secured by Celina Plaza Apartments, matured in July 1997. Subsequent to June 30, 1997, the General Partner obtained a sixty day extension, with the stipulation that the Partnership make a $113,500 payment towards the principal balance on this note. In addition to the sixty day extension, which expires September 30, 1997, the Partnership will have two thirty day options requiring additional principal payments of $56,750 at each option. All other terms of the note remain the same. Because the Partnership is currently negotiating to sell the property, the extension was granted by the lender in order to allow the Partnership additional time to consummate a sale. However, there can be no assurance that a sale will be consummated. If by the final maturity date of November 28, 1997, the General Partner is not successful in selling Celina Plaza Apartments, the property could be lost through foreclosure. No cash distributions were declared or paid during the first six 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 filed during the three months ended June 30, 1997. SIGNATURES In accordance with the requirements of the Exchange Act, the registrant 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/Carroll D. Vinson Carroll D. Vinson President By: /s/Robert D. Long Robert D. Long, Jr. Vice President/CAO Date: August 4, 1997 EX-27 2
5 This schedule contains summary financial information extracted from Consolidated Capital Properties VI 1997 Second Quarter 10-QSB and is qualified in its entirety by reference to such 10-QSB filing. 0000755908 CONSOLIDATED CAPITAL PROPERTIES VI 1,000 6-MOS DEC-31-1997 JUN-30-1997 1,428 0 29 0 0 0 16,714 7,514 11,416 0 10,129 0 0 0 761 11,416 0 1,636 0 0 1,825 0 486 (189) 0 (189) 0 0 0 (189) (1.04) 0 Registrant has an unclassified balance sheet. Multiplier is 1.
-----END PRIVACY-ENHANCED MESSAGE-----