-----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, S95KBdtQS6BKj5ZG9wKpdmkKI3Jzt/poSbrs0ApGJ+XtkQhfOEdCk1UWH96pZ0kA GQcG5vDwFVrcDSYGNZNq2w== 0000913906-98-000054.txt : 19980513 0000913906-98-000054.hdr.sgml : 19980513 ACCESSION NUMBER: 0000913906-98-000054 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980512 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: FJS PROPERTIES FUND I LP CENTRAL INDEX KEY: 0000756435 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 133252067 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-15755 FILM NUMBER: 98616651 BUSINESS ADDRESS: STREET 1: 264 ROUTE 537 EAST CITY: COLTSNECK STATE: NJ ZIP: 07722 BUSINESS PHONE: 9085429209 10-Q 1 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 --------- FORM 10-Q Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarter ended March 31, 1998 Commission File Number 2-93980 -------------- ------- FJS PROPERTIES FUND I, L.P. (Exact name of registrant as specified in its charter) Delaware 13-3252067 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 264 Route 537 East Colts Neck, New Jersey 07722 (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (908) 542-9209 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 of 15(d) of the Securities and 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 Authorized 100,000 limited partnership interests of which 16,788 have been sold as of May 8, 1998. FJS PROPERTIES FUND I, L.P. - ------------------------------------------------------------------------------ INDEX - ------------------------------------------------------------------------------ Part I: FINANCIAL INFORMATION Item 1: Financial Statements Balance Sheets as of March 31, 1998 [Unaudited] and December 31, 1997 .................................... 1 Statements of Operations for the three months ended March 31, 1998 and 1997 [Unaudited]....................... 2 Statement of Partners' Capital for the three months ended March 31, 1998 [Unaudited].......................... 3 Statements of Cash Flows for the three months ended March 31, 1998 and 1997 [Unaudited]....................... 4 Notes to Financial Statements [Unaudited]................. 5 Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations................................. 6 Part II: OTHER INFORMATION Item 6: Exhibits and Reports on Form 8-K.......................... 7 Signature ........................................................ 8 . . . . . . . . PART I - FINANCIAL INFORMATION Item 1: Financial Statements FJS PROPERTIES FUND I, L.P. - ------------------------------------------------------------------------------ BALANCE SHEETS - ------------------------------------------------------------------------------ March 31, December 31, 1 9 9 8 1 9 9 7 [Unaudited] Assets: Current Assets: Cash and Cash Equivalents $ 559,571 $ 535,546 Cash - Escrow 173,279 97,661 Cash - Security Deposits 125,528 121,878 Other Current Assets 18,044 35,971 ---------- ----------- Total Current Assets 876,422 791,056 ---------- ----------- Property Investment: Land 2,296,804 2,296,804 Buildings 6,569,125 6,569,125 Furniture, Fixtures and Building Improvements 1,835,525 1,818,365 ---------- ----------- Totals - At Cost 10,701,454 10,684,294 Less: Accumulated Depreciation (4,571,187) (4,507,327) ---------- ----------- Property Investment - Net 6,130,267 6,176,967 ---------- ----------- Other Assets 287,131 290,795 ---------- ----------- Total Assets $7,293,820 $ 7,258,818 ========== =========== Liabilities and Partners' Capital: Current Liabilities: Accounts Payable $ 91,804 $ 97,300 Accrued Interest 38,273 38,944 Other Accrued Expenses 61,218 6,423 Accounts Payable - Related Party 22,023 26,138 Tenant Security Deposits 125,527 121,878 Mortgage Payable - Current Portion 72,185 70,455 Deferred Income - Current Portion 7,142 7,142 ---------- ----------- Total Current Liabilities 418,172 368,280 ---------- ----------- Long-Term Liabilities: Mortgage Payable - Non-Current Portion 4,703,868 4,722,578 Deferred Income - Non-Current Portion 30,356 32,141 ---------- ----------- Total Long-Term Liabilities 4,734,224 4,754,719 ---------- ----------- Partners' Capital: General Partner (1,214,445) (1,214,501) Limited Partners 3,355,869 3,350,320 ---------- ----------- Total Partners' Capital 2,141,424 2,135,819 ---------- ----------- Total Liabilities and Partners' Capital $7,293,820 $ 7,258,818 ========== =========== See Accompanying Notes to These Financial Statements. 1 FJS PROPERTIES FUND I, L.P. - ------------------------------------------------------------------------------ STATEMENTS OF OPERATIONS [UNAUDITED] - ------------------------------------------------------------------------------ Three months ended March 31, 1 9 9 8 1 9 9 7 ------- ------- Rental Income $ 526,564 $ 496,655 Cost of Rental Income 165,313 188,749 ---------- ----------- Gross Profit 361,251 307,906 ---------- ----------- Expenses: Selling, General and Administrative Expenses 173,203 157,348 Depreciation and Amortization 69,963 63,718 ---------- ----------- Total Expenses 243,166 221,066 ---------- ----------- Operating Income 118,085 86,840 ---------- ----------- Other [Income] and Expenses: Interest Income (6,473) (6,002) Interest Expense 116,053 118,141 Other Expense 2,900 -- ---------- ----------- Other Expenses - Net 112,480 112,139 ---------- ----------- Net Income [Loss] $ 5,605 $ (25,299) ========== =========== Income [Loss] Per Limited Partnership Unit $ .33 $ (1.49) ========== =========== Weighted Average Number of Limited Partnership Units Outstanding 16,788 16,788 ========== =========== See Accompanying Notes to These Financial Statements. 2 FJS PROPERTIES FUND I, L.P. - ------------------------------------------------------------------------------ STATEMENT OF PARTNERS' CAPITAL [UNAUDITED] - ------------------------------------------------------------------------------ Total General Limited Partners' Partner Partners Capital Partners' Capital - December 31, 1997 $(1,214,501) $3,350,320 $ 2,135,819 Net Income for the three months ended March 31, 1998 56 5,549 5,605 ----------- ---------- ----------- Partners' Capital - March 31, 1998 [Unaudited] $(1,214,445) $3,355,869 $ 2,141,424 =========== ========== =========== See Accompanying Notes to These Financial Statements. 3 FJS PROPERTIES FUND I, L.P. - ------------------------------------------------------------------------------ STATEMENTS OF CASH FLOWS [UNAUDITED] - ------------------------------------------------------------------------------ Three months ended March 31, 1 9 9 8 1 9 9 7 ------- ------- Operating Activities: Net Income [Loss] $ 5,605 $ (25,299) ---------- ----------- Adjustments to Reconcile Net Income [Loss] to Net Cash Provided by Operating Activities: Depreciation 63,861 57,616 Amortization 6,102 6,102 Changes in Assets and Liabilities: [Increase] Decrease in: Escrow (75,618) 10,226 Security Deposits (3,650) (10,880) Other Current Assets 17,927 (89,211) Other Assets (2,438) -- Increase [Decrease] in: Accounts Payable (5,504) (9,456) Accrued Interest (670) (123) Other Accrued Expenses 54,796 51,979 Accounts Payable - Related Party (4,114) 3,137 Tenant Security Deposits 3,650 10,880 Deferred Income (1,785) (1,785) ---------- ----------- Total Adjustments 52,557 28,485 ---------- ----------- Net Cash - Operating Activities 58,162 3,186 Investing Activities: Capital Expenditures (17,160) -- Financing Activities: Principal Payments on Mortgages (16,977) (15,407) ---------- ----------- Net Increase [Decrease] in Cash and Cash Equivalents 24,025 (12,221) Cash and Cash Equivalents - Beginning of Periods 535,546 493,597 ---------- ----------- Cash and Cash Equivalents - End of Periods $ 559,571 $ 481,376 ========== =========== Supplemental Disclosure of Cash Flow Information: Cash paid for interest during the three months ended March 31, 1998 and 1997 was $116,722 and $118,264, respectively. For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. See Accompanying Notes to These Financial Statements. 4 FJS PROPERTIES FUND I, L.P. NOTES TO FINANCIAL STATEMENTS [UNAUDITED] - ------------------------------------------------------------------------------ [A] Significant Accounting Policies Significant accounting policies of FJS Properties Fund I, L.P. are set forth in the Partnership's Form 10-K for the year ended December 31, 1997, as filed with the Securities and Exchange Commission. [B] Basis of Reporting The balance sheet as of March 31, 1998, the statements of operations for the three months ended March 31, 1998 and 1997, the statement of partners' capital for the three months ended March 31, 1998, and the statements of cash flows for the three months ended March 31, 1998 and 1997 have been prepared by the Partnership without audit. The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 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. In the opinion of the managing partner, such statements include all adjustments [consisting only of normal recurring items] which are considered necessary for a fair presentation of the financial position of the Partnership at March 31, 1998, and the results of its operations and cash flows for the three months then ended. It is suggested that these financial statements be read in conjunction with Form S-11 filed with the Securities and Exchange Commission on April 25, 1985 and with the financial statements and notes contained in the Partnership's Form 10-K for the year ended December 31, 1997. . . . . . . . . . . . 5 Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - ------------------------------------------------------------------------------ LIQUIDITY AND CAPITAL RESOURCES As of the present date, the Partnership owns and operates one Property, the Pavilion Apartments, and does not intend to acquire any other property. Cash flow from Pavilion should be sufficient to permit the Partnership to make the constant monthly payments due prior to maturity on the first mortgage and to meet its monthly operating expenses. However, should there be a significant decrease in Pavilion's occupancy or rental rates, there can be no assurance that the Partnership would be able to obtain sufficient funds to make such payments. OPERATIONS The Partnership has operated the Pavilion Apartments, located in West Palm Beach, Florida since January 1985. The project operated with occupancies in the low-90% range for the first quarter of 1998. Physical occupancy stands at 92.3% as of May 11, 1998, with 24 vacant apartments of which 8 have been rented with tenant move-in scheduled during May. Two other tenants are presently being evicted. Rental income for the three month period ended March 31, 1998, increased to $526,564 as compared to $496,655 for the comparable period of the prior year. This increase was attributable to the increased rental rates enjoyed by the Pavilion Apartments as well as to reductions in both vacancies at the project, as well as rental allowances given to tenants. Cost of Rental Income, consisting mainly of real estate taxes, repairs and maintenance and utilities decreased from $188,749 to $165,313 for the comparable three month periods of 1997 and 1998 respectively. The decrease was principally from decreased repairs, maintenance and replacements at the project which to a great extent reflects the past expenses for these items. Increases were experienced in the cost of water and sewer service to the project, and in addition a landscaping service has been engaged to maintain the plantings around the property. Selling, General and Administrative Expenses increased to $173,203 as compared to $157,348 for the comparable three month period of the prior year. This reflects increases in court costs which to some extent is a result of the higher occupancies at the property, and increased Professional Fees which includes approximately $5,600 for fees related to real estate tax appeals for the Pavilion. Payroll expenses showed a decrease in part because of the reduced staffing necessary with the outsourcing of the landscape maintenance at the property. The Other Expense item of $2,900 under Other Income and Expenses for 1998, reflects the net cost to the Partnership of fees and expenses in connection with the tender offer completed by an unaffiliated third party in December 1997. Transfer fees of $10,300 were received and administrative and legal fees of $13,200 were incurred in connection with the review of the documents and preparation of legal filings required to be made by the Partnership. INFLATION As of the present date, inflation has not had a major impact on the operations of the Partnership. 6 PART II - OTHER INFORMATION - ------------------------------------------------------------------------------ Item 6. Exhibits and Reports on Form 8-K [a] Exhibits as required by Item 601 of Regulation S-K: None Required [b] Reports on Form 8-K: None filed during the quarter for which this report is submitted 7 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. FJS PROPERTIES FUND I, L.P. Date: May 12, 1998 By: /s/ Andrew C. Alson -------------------- Andrew C. Alson (President and Chief Financial Officer) FJS Properties, Inc. General Partner 8 EX-27 2 FDS --
5 This schedule contains summary financial information extracted from the consolidated balance sheet and the consolidated statement of operations and is qualified in its entirety by reference to such financial statements. 3-mos Dec-31-1998 Mar-31-1998 559,571 0 0 0 0 876,422 10,701,454 4,571,187 7,293,820 418,172 0 0 0 0 2,141,424 7,293,820 0 526,564 165,313 243,166 (3,573) 0 116,053 5,605 0 5,605 0 0 0 5,605 0.33 0.33
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