-----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, IZFfmABNB/xfTVp+FUhDk983goDTJMK+7iCjtQwukxY6og163lAfvXGOe8mogW43 riGNsQR1dDSPZvFZAWM8kQ== 0000913906-98-000125.txt : 19981113 0000913906-98-000125.hdr.sgml : 19981113 ACCESSION NUMBER: 0000913906-98-000125 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981112 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: 98744054 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 September 30, 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 November 2, 1998. FJS PROPERTIES FUND I, L.P. - ------------------------------------------------------------------------------ INDEX - ------------------------------------------------------------------------------ Part I: FINANCIAL INFORMATION Item 1: Financial Statements Balance Sheets as of September 30, 1998 [Unaudited] and December 31, 1997 .................................... 1 Statements of Operations for the three and nine months ended September 30, 1998 and 1997 [Unaudited]................... 2 Statement of Partners' Capital for the nine months ended September 30, 1998 [Unaudited]...................... 3 Statements of Cash Flows for the nine months ended September 30, 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 - ------------------------------------------------------------------------------ September 30, December 31, 1 9 9 8 1 9 9 7 [Unaudited] Assets: Current Assets: Cash and Cash Equivalents $ 448,069 $ 535,546 Cash - Escrow 270,779 97,661 Cash - Security Deposits 122,582 121,878 Other Current Assets 45,349 35,971 ---------- ----------- Total Current Assets 886,779 791,056 ---------- ----------- Property Investment: Land 2,296,804 2,296,804 Buildings 6,569,125 6,569,125 Furniture, Fixtures and Building Improvements 1,908,203 1,818,365 ---------- ----------- Totals - At Cost 10,774,132 10,684,294 Less: Accumulated Depreciation (4,702,123) (4,507,327) ---------- ----------- Property Investment - Net 6,072,009 6,176,967 ---------- ----------- Other Assets 277,246 290,795 ---------- ----------- Total Assets $7,236,034 $ 7,258,818 ========== =========== Liabilities and Partners' Capital: Current Liabilities: Accounts Payable $ 72,854 $ 97,300 Accrued Interest 36,725 38,944 Other Accrued Expenses 169,534 6,423 Accounts Payable - Related Party 4,736 26,138 Tenant Security Deposits 122,582 121,878 Mortgage Payable - Current Portion 75,778 70,455 Deferred Income - Current Portion 7,143 7,142 ---------- ----------- Total Current Liabilities 489,352 368,280 ---------- ----------- Long-Term Liabilities: Mortgage Payable - Non-Current Portion 4,665,061 4,722,578 Deferred Income - Non-Current Portion 26,786 32,141 ---------- ----------- Total Long-Term Liabilities 4,691,847 4,754,719 ---------- ----------- Partners' Capital: General Partner (1,215,310) (1,214,501) Limited Partners 3,270,145 3,350,320 ---------- ----------- Total Partners' Capital 2,054,835 2,135,819 ---------- ----------- Total Liabilities and Partners' Capital $7,236,034 $ 7,258,818 ========== =========== See Accompanying Notes to These Financial Statements. 1 FJS PROPERTIES FUND I, L.P. - ------------------------------------------------------------------------------ STATEMENTS OF OPERATIONS [UNAUDITED] - ------------------------------------------------------------------------------ Three months ended Nine months ended September 30, September 30, ------------- ------------- 1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7 ------- ------- ------- ------- Rental Income $ 508,072 $ 515,580 $ 1,565,280 $ 1,520,712 Cost of Rental Income 158,170 173,158 492,141 533,894 ---------- ---------- ----------- ----------- Gross Profit 349,902 342,422 1,073,139 986,818 ---------- ---------- ----------- ----------- Expenses: Selling, General and Administrative Expenses 184,573 183,757 520,501 508,462 Depreciation and Amortization 71,851 66,582 213,102 197,421 ---------- ---------- ----------- ----------- Total Expenses 256,424 250,339 733,603 705,883 ---------- ---------- ----------- ----------- Operating Income 93,478 92,083 339,536 280,935 ---------- ---------- ----------- ----------- Other [Income] and Expenses: Interest Income (6,241) (7,223) (19,224) (18,782) Interest Expense 115,709 117,373 346,629 351,983 Other Expense -- -- 2,900 -- ---------- ---------- ----------- ----------- Other Expenses - Net 109,468 110,150 330,305 333,201 ---------- ---------- ----------- ----------- Net [Loss] Income $ (15,990) $ (18,067) $ 9,231 $ (52,266) ========== ========== =========== =========== [Loss] Income Per Limited Partnership Unit $ (.94) $ (1.07) $ .54 $ (3.08) ========== ========== =========== =========== Distributions Per Limited Partnership Unit $ 2.62 $ 2.40 $ 5.32 $ 3.70 ========== ========== =========== =========== Weighted Average Number of Limited Partnership Units Outstanding 16,788 16,788 16,788 16,788 ========== ========== =========== =========== See Accompanying Notes to 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 nine months ended September 30, 1998 92 9,139 9,231 Cash Distributions to Partners (901) (89,314) (90,215) ----------- ---------- ----------- Partners' Capital - September 30, 1998 [Unaudited] $(1,215,310) $3,270,145 $ 2,054,835 =========== ========== =========== See Accompanying Notes to Financial Statements. 3 FJS PROPERTIES FUND I, L.P. - ------------------------------------------------------------------------------ STATEMENTS OF CASH FLOWS [UNAUDITED] - ------------------------------------------------------------------------------ Nine months ended September 30, 1 9 9 8 1 9 9 7 ------- ------- Operating Activities: Net Income [Loss] $ 9,231 $ (52,266) ---------- ----------- Adjustments to Reconcile Net Income [Loss] to Net Cash Provided by Operating Activities: Depreciation 194,796 179,114 Amortization 18,306 18,306 Changes in Assets and Liabilities: [Increase] Decrease in: Escrow (173,118) (56,983) Security Deposits (704) (3,801) Other Current Assets (9,378) (56,880) Other Assets (4,757) -- Increase [Decrease] in: Accounts Payable (24,447) (9,463) Accrued Interest (2,219) (1,664) Other Accrued Expenses 163,111 157,036 Accounts Payable - Related Party (21,402) (8,596) Tenant Security Deposits 704 3,801 Deferred Income (5,357) (5,357) ---------- ----------- Total Adjustments 135,535 215,513 ---------- ----------- Net Cash - Operating Activities 144,766 163,247 ---------- ----------- Investing Activities: Capital Expenditures (89,834) (2,457) ---------- ----------- Financing Activities: Principal Payments on Mortgages (52,194) (47,365) Distributions to Partners (90,215) (62,743) ---------- ----------- Net Cash - Financing Activities (142,409) (110,108) ---------- ----------- Net [Decrease] Increase in Cash and Cash Equivalents (87,477) 50,682 Cash and Cash Equivalents - Beginning of Periods 535,546 493,597 ---------- ----------- Cash and Cash Equivalents - End of Periods $ 448,069 $ 544,279 ========== =========== Supplemental Disclosure of Cash Flow Information: Cash paid for interest during the nine months ended September 30, 1998 and 1997 was $325,354 and $353,647, 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 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 September 30, 1998, the statements of operations for the three and nine months ended September 30, 1998 and 1997, the statement of partners' capital for the nine months ended September 30, 1998, and the statements of cash flows for the nine months ended September 30, 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 September 30, 1998, and the results of its operations for the three and nine months then ended and its cash flows for the nine 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 during the third quarter of 1998. As of November 2, 1998, there were 28 vacant apartments of which 6 of the vacant apartments were rented for occupancy during November, and 22 apartments were available for rent. Thus 91.0% of the apartments are occupied and 92.9% are presently rented. Rental income for the three and nine month periods ending September 30, of 1997 and 1998, decreased for the three month periods while increasing for the nine month periods from $515,580 and $1,520,712 to $508,072 and $1,565,280 for the comparable periods. The increase for the nine month period was attributable to the increased rental rates for apartments at the Pavilion, while the decrease for the three month period resulted from increased vacancies at the project during the summer months as compared to the prior year. Cost of Rental Income, consisting mainly of real estate taxes, repairs and maintenance and utilities decreased for the three and nine month periods of 1997 to 1998, from $173,158 and $533,894 to $158,170 and $492,141 respectively. The decreases resulted primarily from the nature of replacements and repairs which were completed at the project which by their nature were capitalized rather than expensed during this period. The capitalized and now depreciated items resulted in increased depreciation which is reflected during those periods. Selling, General and Administrative Expenses increased from $183,757 and $508,462 for the respective three and nine month periods of 1997 to $184,573 and $520,501 for 1998. Expenses for 1998 reflected increased management fees as a result of the increased rental income as well as increases in various expenses including court costs and professional fees. Operating Income increased from $92,083 and $280,935 for the three and nine month periods of 1997 to $93,478 and $339,536 for the comparable periods of 1998. 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: November 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 schedules. 9-Mos Dec-31-1998 Sep-30-1998 448,069 0 0 0 0 886,779 10,774,132 4,702,123 7,236,034 489,352 0 0 0 0 2,054,835 7,236,034 0 1,565,280 492,141 733,603 (16,324) 0 346,629 9,231 0 9,231 0 0 0 9,231 .54 .54
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