-----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, NZekU7pkzQ/5Bf8ngragGo75Kwo5wwCZulQ3e26BrDUnmO8JgOmXSkTboMEKUsTB XJ78f3nwH2DC394R5VaeGA== 0000759198-97-000001.txt : 19970505 0000759198-97-000001.hdr.sgml : 19970505 ACCESSION NUMBER: 0000759198-97-000001 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970502 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MCCOMBS REALTY PARTNERS LTD CENTRAL INDEX KEY: 0000759198 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 330068732 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-14570 FILM NUMBER: 97594570 BUSINESS ADDRESS: STREET 1: ONE INSIGNIA FINANCIAL PLZ STREET 2: P O BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 BUSINESS PHONE: 8032391000 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 (As last amended by 34-32231, eff. 6/3/93.) 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 March 31, 1997 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from.........to......... Commission file number 0-14570 MCCOMBS REALTY PARTNERS, LTD. (Exact name of small business issuer as specified in its charter) California 33-0068732 (State or other jurisdiction of (I.R.S. 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 Securities 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 . PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS a) MCCOMBS REALTY PARTNERS, LTD. CONSOLIDATED BALANCE SHEET (Unaudited) (in thousands) March 31, 1997 Assets Cash and cash equivalents: Unrestricted $ 407 Restricted--tenant security deposits 29 Accounts receivable 10 Escrow for taxes 26 Restricted escrows 206 Other assets 165 Investment properties: Land $ 499 Buildings and related personal property 5,292 5,791 Less accumulated depreciation (3,090) 2,701 $ 3,544 Liabilities and Partners' Capital (Deficit) Liabilities Accounts payable $ 16 Tenant security deposits 29 Accrued taxes 20 Other liabilities 55 Mortgage note payable 5,768 Partners' Capital (Deficit) General partners $ 1 Limited partners (22,036 units issued and outstanding) (2,345) (2,344) $ 3,544 See Accompanying Notes to Consolidated Financial Statements b) MCCOMBS REALTY PARTNERS, LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except for unit data) Three Months Ended March 31, 1997 1996 Revenues: Rental income $ 343 $ 334 Interest income 5 7 Other income 28 24 Total revenues 376 365 Expenses: Operating 123 114 General and administrative 7 10 Maintenance 25 60 Depreciation 50 46 Interest 122 162 Property taxes 20 20 Total expenses 347 412 Net income (loss) $ 29 $ (47) Net income (loss) allocated to general partners (1%) $ -- $ -- Net income (loss) allocated to limited partners (99%) 29 (47) $ 29 $ (47) Net income (loss) per limited partnership unit $ 1.32 $ (2.12) See Accompanying Notes to Consolidated Financial Statements c) MCCOMBS REALTY PARTNERS, LTD. CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT) (Unaudited) (in thousands, except for unit data) Limited Partnership General Limited Units Partner Partners Total Partners' capital (deficit) at December 31, 1996 22,036 $ 1 $ (2,374) $ (2,373) Net income for the three months ended March 31, 1997 -- 29 29 Partners' capital (deficit) at March 31, 1997 22,036 $ 1 $ (2,345) $ (2,344) See Accompanying Notes to Consolidated Financial Statements d) MCCOMBS REALTY PARTNERS, LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) Three Months Ended March 31, 1997 1996 Cash flows from operating activities: Net income (loss) $ 29 $ (47) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation 50 46 Amortization of discounts and loan costs 5 5 Change in accounts: Restricted cash 2 -- Accounts receivable 14 1 Escrows for taxes 56 (20) Other assets 2 -- Accounts payable (19) (133) Tenant security deposit liabilities 2 3 Accrued taxes (56) 20 Other liabilities (19) 9 Net cash provided by (used in) operating activities 66 (116) Cash flows from investing activities: Property improvements and replacements (15) (18) Deposits to restricted escrows (17) (17) Net cash used in investing activities (32) (35) Cash flows from financing activities: Payments on mortgage note payable (13) (12) Net cash used in financing activities (13) (12) Net increase (decrease) in cash and cash equivalents 21 (163) Cash and cash equivalents at beginning of period 386 688 Cash and cash equivalents at end of period $ 407 $ 525 Supplemental disclosure of cash flow information: Cash paid for interest $ 117 $ 118 See Accompanying Notes to Consolidated Financial Statements e) MCCOMBS REALTY PARTNERS, LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE A - BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements of McCombs Realty Partners, Ltd. ("Partnership") have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Article 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 CRPTEX, Inc. ("General Partner"), all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 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 annual report on Form 10-KSB for the year ended December 31, 1996, for the Partnership. 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 partnership activities. The Partnership Agreement provides for payments to affiliates for services and as reimbursement of certain expenses incurred by affiliates on behalf of the Partnership. Property management fees are included in operating expense on the consolidated statement of operations. Reimbursements for services from affiliates are included in general and administrative expense in the consolidated statement of operations. The following transactions with the General Partner and its affiliates were charged to expense in 1997 and 1996: Three Months Ended March 31, 1997 1996 Property management fees $ 18 $ 18 Reimbursement for services from affiliates (1) 8 7 (1) Included in "reimbursement for services from affiliates" for 1997 is approximately $1,000 in reimbursements for construction oversight costs. 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 payments 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. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION The Partnership's investment property consists of one apartment complex. The following table sets forth the average occupancy of the property for the three month periods ended March 31, 1997 and 1996: Average Occupancy Property 1997 1996 Lakewood at Pelham Greenville, South Carolina 91% 94% The General Partner attributes the decrease in occupancy to increased competition from newly constructed apartment complexes in the area. Results of Operations The Partnership's net income as shown in the financial statements for the three month's ended March 31, 1997, was approximately $29,000 as compared to a net loss of approximately $47,000 for the corresponding period in 1996. The increase in net income is primarily the result of a decrease in maintenance expense. Maintenance expense decreased during the three months ended March 31, 1997, when compared to the three months ended March 31, 1996, due to interior and exterior painting projects at Lakewood at Pelham during March 1996. As part of the ongoing business plan of the Partnership, the General Partner monitors the rental market environment of its investment property to assess the feasibility of increasing rents, maintaining or increasing occupancy levels and protecting the Partnership for increases in expense. As part of this plan the General Partner attempts to protect the Partnership for 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. Liquidity and Capital Resources At March 31, 1997, the Partnership had unrestricted cash of approximately $407,000 versus $525,000 at March, 31, 1996. Net cash provided by operating activities increased during the first quarter of 1997 due to the increase in net income and a decrease in accounts receivable. Also, net cash provided by operating activities increased due to a decrease in cash used to satisfy accounts payable for the three months ended March 31, 1997. Net cash used in investing activities decreased during the first quarter of 1997 due to decreases in property improvements and replacements. Net cash used in financing activities increased during the first quarter of 1997 due to an increase in payments made on the mortgage note payable for Lakewood at Pelham. The Partnership has no material capital programs scheduled to be performed in 1997, although certain routine capital expenditures and maintenance expenses have been budgeted. These capital expenditures and maintenance expenses will be incurred only if cash is available from operations, is received from the capital reserve account or from cash and cash equivalents on hand. 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 property 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 $5,768,000 has a maturity date of July 1, 2005, at which time the property will be sold or refinanced. No cash distributions were recorded during the three months ended March 31, 1997 or 1996, and none are expected for the remainder of 1997. Future cash distributions will depend on the level of net cash generated from operations, a property sale, and the availability of cash reserves. 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 quarter ended March 31, 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. MCCOMBS REALTY PARTNERS, LTD. By: CRPTEX, INC. the General Partner By: /s/ Carroll D. Vinson Carroll D. Vinson President By: /s/ Robert D. Long, Jr. Robert D. Long, Jr. Vice President/CAO Date: May 2, 1997 EX-27 2
5 This schedule contains summary financial information extracted from McCombs Realty Partners, Ltd. 1997 First Quarter 10-QSB and is qualified in its entirety by reference to such 10-QSB filing. 0000759198 MCCOMBS REALTY PARTNERS LTD. 1,000 3-MOS DEC-31-1997 MAR-31-1997 407 0 10 0 0 0 5,791 (3,090) 3,544 0 5,768 0 0 0 (2,344) 3,544 0 376 0 0 347 0 122 0 0 0 0 0 0 29 1.32 0 Registrant has an unclassified balance sheet. Multiplier is 1.
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