-----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, Lak4RsH243XNHWvztwRj8aFOuw3r09HC2C/enKEf6pBaAPqA4lu6ttwseeceBRCR LuxjkXyD2ZeyOiyQZxwvCw== 0000913906-99-000079.txt : 19990811 0000913906-99-000079.hdr.sgml : 19990811 ACCESSION NUMBER: 0000913906-99-000079 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990810 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: 99682403 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 June 30, 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 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 August 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 June 30, 1999 [Unaudited] and December 31, 1997 .................................... 1 Statements of Operations for the three and six months ended June 30, 1999 and 1998 [Unaudited]........................ 2 Statement of Partners' Capital for the six months ended June 30, 1999 [Unaudited]........................... 3 Statements of Cash Flows for the six months ended June 30, 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 II: 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 - ------------------------------------------------------------------------------ June 30, December 31, 1 9 9 9 1 9 9 8 ------- ------- [Unaudited] ----------- Assets: Current Assets: Cash and Cash Equivalents $ 437,623 $ 458,782 Cash - Escrow 160,011 148,617 Cash - Security Deposits 128,593 125,397 Other Current Assets 51,707 25,752 ---------- ----------- Total Current Assets 777,934 758,548 ---------- ----------- Property Investment: Land 2,296,804 2,296,804 Buildings 6,569,125 6,569,125 Furniture, Fixtures and Building Improvements 2,057,055 1,953,010 ---------- ----------- Totals - At Cost 10,922,984 10,818,939 Less: Accumulated Depreciation (4,912,161) (4,772,099) ---------- ----------- Property Investment - Net 6,010,823 6,046,840 ---------- ----------- Other Assets 260,679 271,341 ---------- ----------- Total Assets $7,049,436 $ 7,076,729 ========== =========== Liabilities and Partners' Capital: Current Liabilities: Accounts Payable $ 53,458 $ 66,582 Accrued Interest 38,063 38,371 Other Accrued Expenses 106,842 6,826 Accounts Payable - Related Party 4,518 19,707 Tenant Security Deposits 128,593 125,397 Mortgage Payable - Current Portion 81,198 77,641 Deferred Income - Current Portion 7,143 7,143 ---------- ----------- Total Current Liabilities 419,815 341,667 ---------- ----------- Long-Term Liabilities: Mortgage Payable - Non-Current Portion 4,603,198 4,644,938 Deferred Income - Non-Current Portion 21,428 25,000 ---------- ----------- Total Long-Term Liabilities 4,624,626 4,669,938 ---------- ----------- Partners' Capital: General Partner (1,215,809) (1,215,207) Limited Partners 3,220,804 3,280,331 ---------- ----------- Total Partners' Capital 2,004,995 2,065,124 ---------- ----------- Total Liabilities and Partners' Capital $7,049,436 $ 7,076,729 ========== =========== See Accompanying Notes to These Financial Statements. 1 FJS PROPERTIES FUND I, L.P. - ------------------------------------------------------------------------------ STATEMENTS OF OPERATIONS [UNAUDITED] - ------------------------------------------------------------------------------ Three months ended Six months ended June 30, June 30, -------- -------- 1 9 9 9 1 9 9 8 1 9 9 9 1 9 9 8 ------- ------- ------- ------- Rental Income $ 561,425 $ 530,643 $ 1,105,308 $ 1,057,208 Cost of Rental Income 199,714 168,658 397,103 333,970 ---------- ---------- ----------- ----------- Gross Profit 361,711 361,985 708,205 723,238 ---------- ---------- ----------- ----------- Expenses: Selling, General and Administrative Expenses 162,446 162,724 320,418 335,928 Depreciation and Amortization 76,927 71,288 152,267 141,251 ---------- ---------- ----------- ----------- Total Expenses 239,373 234,012 472,685 477,179 ---------- ---------- ----------- ----------- Operating Income 122,338 127,973 235,520 246,059 ---------- ---------- ----------- ----------- Other [Income] and Expenses: Interest Income (4,371) (6,509) (9,171) (12,982) Interest Expense 114,192 114,866 228,850 230,919 Other Expense -- -- -- 2,900 ---------- ---------- ----------- ----------- Other Expenses - Net 109,821 108,357 219,679 220,837 ---------- ---------- ----------- ----------- Net Income $ 12,517 $ 19,616 $ 15,841 $ 25,222 ========== ========== =========== =========== Income Per Limited Partnership Unit $ .74 $ 1.16 $ .94 $ 1.49 ========== ========== =========== =========== Distributions Per Limited Partnership Unit $ 2.20 $ 2.70 $ 4.48 $ 2.70 ========== ========== =========== =========== 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, 1998 $(1,215,207) $3,280,331 $ 2,065,124 Net Income for the six months ended June 30, 1999 158 15,683 15,841 Distributions to Partners (760) (75,210) (75,970) ----------- ---------- ----------- Partners' Capital - June 30, 1999 [Unaudited] $(1,215,809) $3,220,804 $ 2,004,995 =========== ========== =========== See Accompanying Notes to Financial Statements. 3 FJS PROPERTIES FUND I, L.P. - ------------------------------------------------------------------------------ STATEMENTS OF CASH FLOWS [UNAUDITED] - ------------------------------------------------------------------------------ Six months ended June 30, -------- 1 9 9 9 1 9 9 8 ------- ------- Operating Activities: Net Income $ 15,841 $ 25,222 ---------- ----------- Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation 140,063 129,047 Amortization 12,204 12,204 Changes in Assets and Liabilities: [Increase] Decrease in: Escrow (11,394) (97,499) Security Deposits (3,196) (1,746) Other Current Assets (25,956 (22,265) Other Assets (1,542) (3,592) Increase [Decrease] in: Accounts Payable (13,124) (19,226) Accrued Interest (308) (2,080) Other Accrued Expenses 100,015 108,700 Accounts Payable - Related Party (15,189) (16,824) Tenant Security Deposits 3,196 1,746 Deferred Income (3,571) (3,571) ---------- ----------- Total Adjustments 181,198 84,894 ---------- ----------- Net Cash - Operating Activities 197,039 110,116 ---------- ----------- Investing Activities: Capital Expenditures (104,045) (59,720) ---------- ----------- Financing Activities: Principal Payments on Mortgages (38,183) (34,372) Cash Distributions to Partners (75,970) (45,787) ---------- ----------- Net Cash - Financing Activities (114,153) (80,159) ---------- ----------- Net [Decrease] in Cash and Cash Equivalents (21,159) (29,763) Cash and Cash Equivalents - Beginning of Periods 458,782 535,546 ---------- ----------- Cash and Cash Equivalents - End of Periods $ 437,623 $ 505,783 ========== =========== Supplemental Disclosure of Cash Flow Information: Cash paid for interest during the six months ended June 30, 1999 and 1998 was $229,157 and $232,329, 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, 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 June 30, 1999, the statements of operations for the three and six months ended June 30, 1999 and 1998, the statement of partners' capital for the six months ended June 30, 1999, and the statements of cash flows for the six months ended June 30, 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 June 30, 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 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 second quarter of 1999. As of August 9, 1999, there were 28 vacant apartments with 3 scheduled move-ins for August. 25 apartments were available for rent. Physical occupancy stands at 91.0%, with 92.0% of the apartments rented. Rental income for the comparable periods ended June 30, 1999, showed increases as compared to the prior year, both for the three month periods, from $530,643 to $561,425 and the six month periods from $1,057,208 to $1,105,308. The increases were primarily attributable to the increased rental rates enjoyed by the Pavilion Apartments as well as a reduction in vacancies. Cost of Rental Income, consisting mainly of real estate taxes, repairs and maintenance and utilities increased from $168,658 to $199,714 and from $333,970 to $397,103 for the comparable three and six month periods of 1998 and 1999 respectively. The increase resulted principally from increased expenditures for replacements and upgrades at the Pavilion as part of the anticipated $150,000 in additional improvements, upgrades and replacements undertaking at the Pavilion Apartments. Approximately $34,000 in replacements in excess of the 1998 amount has been incurred during the second quarter of 1999. In addition, capitalized expenditures of approximately $83,000 was spent on replacement of shower and tub enclosures, roof replacements, sidewalk replacements and miscellaneous interior replacements. The costs of these items was capitalized and will be amortized and expensed over the applicable number of years. Selling, General and Administrative Expenses remained substantially unchanged from 1998 to 1999, reflecting $335,928 and $320,418 for the comparable six month periods and $162,724 and $162,446 for the comparable three month periods. 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. Principally as a result of the increase in Cost of Rental Income, Operating Income decreased for both comparable three and six month periods, to $122,338 and $235,520 from $127,973 and $246,059 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: August 9, 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 such financial statements. 6-mos Dec-31-1998 Jun-30-1999 437,623 0 0 0 0 777,934 10,922,984 4,912,161 7,049,436 419,815 0 0 0 0 2,004,995 7,049,436 0 1,105,308 397,103 472,685 (9,171) 228,850 0 15,841 0 15,841 0 0 0 15,841 .94 .94
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