-----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, Kv92odEUf+BIZ5TZWPJft9MIfWvdN4mauL9dIK6mCsvDzfRfBJaTE8/+lRchctZa WKSKES0yLmkWr4fkwJvCtw== 0000913906-99-000035.txt : 19990517 0000913906-99-000035.hdr.sgml : 19990517 ACCESSION NUMBER: 0000913906-99-000035 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990514 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: 99622649 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, 1999 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 Identification No.) incorporation or organization) 264 Route 537 East Colts Neck, NJ 07722 -------------- ----- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (732) 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, 1999. FJS PROPERTIES FUND I, L.P. - ------------------------------------------------------------------------------ INDEX - ------------------------------------------------------------------------------ Part I: FINANCIAL INFORMATION (See Preliminary Note Below) Item 1: Financial Statements Balance Sheets as of March 31, 1998 [Unaudited] and December 31, 1998........................................ 1 Statement of Operations for the three months ended March 31, 1999 and 1998 [Unaudited].......................... 2 Statement of Partners' Capital for the three months ended March 31, 1999 [Unaudited]............................. 3 Statements of Cash Flows for the three months ended March 31, 1999 and 1998 [Unaudited].......................... 4 Notes to Financial Statements [Unaudited].................... 5 Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations.................................... 6 Part III: OTHER INFORMATION Item 6: Exhibits and Reports on Form 8-K............................. 7 Signature............................................................. 8 . . . . . . . . . Preliminary Note - In a recent letter, the Staff of the Securities and Exchange Commission raised the issue that the Partnership's auditors may not be independent of the Partnership, as required by law, in that a member of the audit firm had a relationship with an entity which is a holder of Partnership interests. Neither the Staff letter, nor any other information available to the Partnership indicates that there is any inaccuracy in the "audited" financial statements. As a result of the Staff's position, however, the "audited" financial statements might be deemed to be unaudited. The Partnership is in the process of obtaining a new auditing firm to serve as the Partnership's principal independent accountants to audit its financial statements, and, if necessary, to review prior years' financials and confirm their accuracy. PART I - FINANCIAL INFORMATION Item 1: Financial Statements FJS PROPERTIES FUND I, L.P. - ------------------------------------------------------------------------------ BALANCE SHEETS - ------------------------------------------------------------------------------ March 31, December 31, 1 9 9 9 1 9 9 8 [Unaudited] Assets: Current Assets: Cash and Cash Equivalents $ 445,565 $ 458,782 Cash - Escrow 221,936 148,617 Cash - Security Deposits 132,946 125,397 Other Current Assets 13,178 25,752 ---------- ----------- Total Current Assets 813,625 758,548 ---------- ----------- Property Investment: Land 2,296,804 2,296,804 Buildings 6,569,125 6,569,125 Furniture, Fixtures and Building Improvements ,972,252 1,953,010 ---------- ----------- Totals - At Cost 10,838,181 10,818,939 Less: Accumulated Depreciation (4,841,336) (4,772,099) ---------- ----------- Property Investment - Net 5,996,845 6,046,840 ---------- ----------- Other Assets 266,281 271,341 ---------- ----------- Total Assets $7,076,751 $ 7,076,729 ========== =========== Liabilities and Partners' Capital: Current Liabilities: Accounts Payable $ 60,145 $ 66,582 Accrued Interest 38,219 38,371 Other Accrued Expenses 57,511 6,826 Accounts Payable - Related Party 19,781 19,707 Tenant Security Deposits 135,708 125,397 Mortgage Payable - Current Portion 79,398 77,641 Deferred Income - Current Portion 7,143 7,143 ---------- ----------- Total Current Liabilities 397,905 341,667 ---------- ----------- Long-Term Liabilities: Mortgage Payable - Non-Current Portion 4,624,321 4,644,938 Deferred Income - Non-Current Portion 23,214 25,000 ---------- ----------- Total Long-Term Liabilities 4,647,535 4,669,938 ---------- ----------- Partners' Capital: General Partner (1,215,545) (1,215,207) Limited Partners 3,246,856 3,280,331 ---------- ----------- Total Partners' Capital 2,031,311 2,065,124 ---------- ----------- Total Liabilities and Partners' Capital $7,076,751 $ 7,076,729 ========== =========== See Accompanying Notes to These Financial Statements. 1 PART I - FINANCIAL INFORMATION Item 1: Financial Statements FJS PROPERTIES FUND I, L.P. - ------------------------------------------------------------------------------ STATEMENTS OF OPERATIONS [UNAUDITED] - ------------------------------------------------------------------------------ Three months ended March 31, 1 9 9 9 1 9 9 8 ------- ------- Rental Income $ 543,883 $ 526,564 Cost of Rental Income 197,389 165,313 ---------- ----------- Gross Profit 346,494 361,251 ---------- ----------- Expenses: Selling, General and Administrative Expenses 157,972 173,203 Depreciation and Amortization 75,340 69,963 ---------- ----------- Total Expenses 233,312 243,166 ---------- ----------- Operating Income 113,182 118,085 ---------- ----------- Other [Income] and Expenses: Interest Income (4,800) (6,473) Interest Expense 114,658 116,053 Other Expense -- 2,900 ---------- ----------- Other Expenses - Net 109,858 112,480 ---------- ----------- Net Income $ 3,324 $ 5,605 ========== =========== Income Per Limited Partnership Unit $ .20 $ .33 ========== =========== Distributions Per Limited Partnership Unit $ 2.19 $ 0.00 ========== =========== Weighted Average Number of Limited Partnership Units Outstanding 16,788 16,788 ========== =========== See Accompanying Notes to These Financial Statements. 2 PART I - FINANCIAL INFORMATION Item 1: Financial Statements FJS PROPERTIES FUND I, L.P. - ------------------------------------------------------------------------------ STATEMENT OF PARTNERS' CAPITAL [UNAUDITED] - ------------------------------------------------------------------------------ Total General Limited Partners' Partner Partners Capital Partners' Capital - December 31, 1998 $(1,215,207) $3,280,331 $ 2,065,124 Net Income for the three months ended March 31, 1999 33 3,291 3,324 Distributions to Partners (371) (36,766) (37,137) ----------- ---------- ----------- Partners' Capital - March 31, 1999 [Unaudited] $(1,215,545) $3,246,856 $ 2,031,311 =========== ========== =========== See Accompanying Notes to These Financial Statements. 3 PART I - FINANCIAL INFORMATION Item 1: Financial Statements FJS PROPERTIES FUND I, L.P. - ------------------------------------------------------------------------------ STATEMENTS OF CASH FLOWS [UNAUDITED] - ------------------------------------------------------------------------------ Three months ended March 31, 1 9 9 9 1 9 9 8 ------- ------- Operating Activities: Net Income $ 3,324 $ 5,605 ---------- ----------- Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation 69,237 63,861 Amortization 6,102 6,102 Changes in Assets and Liabilities: [Increase] Decrease in: Escrow (73,318) (75,618) Security Deposits (7,549) (3,650) Other Current Assets 12,573 17,927 Other Assets (1,042) (2,438) Increase [Decrease] in: Accounts Payable (6,437) (5,504) Accrued Interest (152) (670) Other Accrued Expenses 50,685 54,796 Accounts Payable - Related Party 75 (4,114) Tenant Security Deposits 10,311 3,650 Deferred Income (1,786) (1,785) ---------- ----------- Total Adjustments 58,699 52,557 ---------- ----------- Net Cash - Operating Activities 62,023 58,162 Investing Activities: Capital Expenditures (19,242) (17,160) Financing Activities: Principal Payments on Mortgages (18,860) (16,977) Cash Distributions to Partners (37,138) -- ---------- ----------- Net [Decrease] Increase in Cash and Cash Equivalents (13,217) 24,025 Cash and Cash Equivalents - Beginning of Periods 458,782 535,546 ---------- ----------- Cash and Cash Equivalents - End of Periods $ 445,565 $ 559,571 ========== =========== Supplemental Disclosure of Cash Flow Information: Cash paid for interest during the three months ended March 31, 1999 and 1998 was $114,658 and $116,722 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, 1998, as filed with the Securities and Exchange Commission. (See, also, Preliminary Note on Index page). [B] Basis of Reporting The balance sheet as of March 31, 1999, the statements of operations for the three months ended March 31, 1999 and 1998, the statement of partners' capital for the three months ended March 31, 1999, and the statements of cash flows for the three months ended March 31, 1999 and 1998 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, 1999, 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, 1998. (See, also, Preliminary Note on Index page). . . . . . . . . . . . 5 FJS PROPERTIES FUND I, L.P. 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 1999. Physical occupancy stands at 93% as of May 10, 1999, with 21 vacant apartments of which 10 have been rented with tenant move-in scheduled during May. Rental income for the three month period ended March 31, 1999, increased to $543,883 as compared to $526,564 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 a reduction in rental allowances given to tenants. This was offset somewhat by an increase in vacancies at the project. Cost of Rental Income, consisting mainly of real estate taxes, repairs and maintenance and utilities increased to $197,389 from $165,313 for the comparable three month periods of 1999 and 1998 respectively. The increase was principally from increased replacements at the project. During 1999, the Partnership anticipates continuing an increased level of repairs, replacements and upgrades at the Pavilion. Principal items included in the projected budget of approximately $150,000 are: Aluminum roof coating of the buildings; pressure cleaning and spot painting; replacement of shower and tub enclosures in approximately fifty units with concrete wall board and fiberglass shower pans; two new entrance gates for the property; and seal coating and striping of the parking lots. Further tree removal and trimming is also contemplated to help prevent roof damage, sidewalk damage and damage to building interiors. It is anticipated that adequate funds will be available from cash flow and operating funds on hand to complete this work. Selling, General and Administrative Expenses decreased to $157,972 as compared to $173,203 for the comparable three month period of the prior year. This reflects decreases in professional fees as well as reduced costs for insurance coverage for the Pavilion. 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. This was a non-recurring income and expense and was not duplicated during the first quarter of 1999. INFLATION As of the present date, inflation has not had a major impact on the operations of the Partnership. 6 FJS PROPERTIES FUND I, L.P. - ------------------------------------------------------------------------------ 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 FJS PROPERTIES FUND I, L.P. - ------------------------------------------------------------------------------ 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 11, 1999 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 said statements. 3-mos Dec-31-1999 Mar-31-1999 445,565 0 0 0 0 813,625 10,838,181 4,841,336 7,076,751 397,905 0 0 0 0 2,031,311 7,076,751 0 543,883 197,389 978,624 (4,800) 0 114,658 3,324 0 3,324 0 0 0 3,324 .20 .20
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