-----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, Bj16//Iz2F5GUWL3aamG4tpzFlIxGy3FxxWLMuB3oMuAikjdKN2Dlrbf6NWOuzVA meWkbLYjCTXxdjtm6s8wfA== 0000912057-96-008158.txt : 19960507 0000912057-96-008158.hdr.sgml : 19960507 ACCESSION NUMBER: 0000912057-96-008158 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960506 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: KEYSTONE MORTGAGE FUND CENTRAL INDEX KEY: 0000793038 STANDARD INDUSTRIAL CLASSIFICATION: ASSET-BACKED SECURITIES [6189] IRS NUMBER: 953786580 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-14562 FILM NUMBER: 96556635 BUSINESS ADDRESS: STREET 1: 11340 W OLYMPIC BLVD STREET 2: STE 300 CITY: LOS ANGELES STATE: CA ZIP: 90064 BUSINESS PHONE: 2134794121 MAIL ADDRESS: STREET 1: 11340 W OLYMPIC BLVD STREET 2: SUITE 300 CITY: LOS ANGELES STATE: CA ZIP: 90064 10-Q 1 FORM 10-Q - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ------------------------------ FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR QUARTER ENDED COMMISSION FILE NUMBER MARCH 31, 1996 0-14562 ------------------------------------------- KEYSTONE MORTGAGE FUND (Exact name of registrant as specified in its charter.) CALIFORNIA 95-3786580 (State of Incorporation) (I.R.S. Employer Identification No.) 11340 W. OLYMPIC BOULEVARD SUITE 300 LOS ANGELES, CALIFORNIA 90064-1661 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (310) 479-4121 --------------------------------------- Indicated by check mark whether the registrant (1) has filed all report required to be filed by Section 13 of 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 ----- ----- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- KEYSTONE MORTGAGE FUND INDEX PAGE ---- PART I. FINANCIAL INFORMATION Item 1. Financial Statements. (a) Condensed Balance Sheets, December 31, 1995 and March 31, 1996 . . . . . . . . . . . . . . . . . . . . . . . 3 (b) Condensed Statements of Income, three months ended, March 31, 1996 and 1995 . . . . . . . . . . . . . . . . . . . . 4 (c) Condensed Statements of Partners' Capital (Deficit) for the year ended December 31, 1995 and the three months ended March 31, 1996 . . . . . . . . . . . . . . . . . . 5 (d) Condensed Statements of Cash Flows, three months ended March 31, 1996 and 1995. . . . . . . . . . . . . . . . . . . . .6 (e) Notes to condensed financial statements. . . . . . . . . . . . .7 & 8 Item 2. Management's discussion and analysis of financial condition and results of operations. . . . . . . . . . . . . .9 PART II. OTHER INFORMATION Item 6. Exhibits and reports on Form 8-K . . . . . . . . . . . . . . 10 & 11 2 KEYSTONE MORTGAGE FUND, A CALIFORNIA LIMITED PARTNERSHIP BALANCE SHEETS
ASSETS (UNAUDITED) *DECEMBER 31 MARCH 31 1995 1996 --------------------------- Current assets: Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . $ 157,848 $ 26,405 Short-term investments (market value of $1,775,183 in 1995 and $2,006,074 in 1996) . . . . . . . . . . . . . . . . . . . . . . . 1,772,598 1,973,918 Interest receivable on trust deed notes receivable. . . . . . . . . . . 8,917 8,889 Other receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000 35,000 Current portion of trust deed notes receivable (note B) . . . . . . . . 11,894 11,983 --------------------------- Total current assets. . . . . . . . . . . . . . . . . . . . . . . . 1,986,257 2,056,195 Investment in real estate, net . . . . . . . . . . . . . . . . . . . . . . 1,102,804 1,089,804 Trust deed notes receivable, net (note B). . . . . . . . . . . . . . . . . 1,017,476 1,014,492 --------------------------- $4,106,537 $4,160,491 --------------------------- --------------------------- LIABILITIES AND PARTNERS' CAPITAL Current Liabilities: Accounts payable and other liabilities. . . . . . . . . . . . . . . . . $ 429 $ 427 Due general partner . . . . . . . . . . . . . . . . . . . . . . . . . . 270,000 272,500 --------------------------- Total current liabilities . . . . . . . . . . . . . . . . . . . . . 270,429 272,927 Partners' capital: General Partners. . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,031 23,546 Limited partners - authorized 20,000 units, outstanding 13,272 units. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,813,077 3,864,018 --------------------------- 3,836,108 3,887,564 --------------------------- $4,106,537 $4,160,491 --------------------------- ---------------------------
See accompanying notes to financial statements. *Extracted from audited December 31, 1995 financial statements. 3 KEYSTONE MORTGAGE FUND, A CALIFORNIA LIMITED PARTNERSHIP CONDENSED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended March 31 1996 1995 ---------------------------- Revenue: Interest on mortgage loans . . . . . . . . . . . $ 26,971 $ 34,383 Interest on short-term investments . . . . . . . 30,319 27,419 Rental and other revenue from investment in real estate . . . . . . . . . . . . . . . . . . 50,913 50,622 ---------------------------- 108,203 112,424 Expenses: Servicing related expenses . . . . . . . . . . . 24,441 13,875 Administrative and general expenses. . . . . . . 3,770 265,357 Expenses related to real estate acquired in settlement of loans . . . . . . . . . . . . . . 28,536 30,368 ---------------------------- 56,747 309,600 NET INCOME (LOSS). . . . . . . . . . . . $ 51,456 $ (197,176) ---------------------------- ---------------------------- Weighted average number of limited partnership units outstanding . . . . . . . . . . . . . . . . 13,272 13,272 ---------------------------- ---------------------------- Net income per limited partnership unit. . . . . . . . . . . . . . . . . . $ 3.88 $ (14.86) ---------------------------- ----------------------------
4 KEYSTONE MORTGAGE FUND, A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF PARTNER'S CAPITAL
GENERAL LIMITED PARTNERS PARTNERS TOTAL -------- -------- ----- Balance at December 31, 1995 . . . . . $ 23,031 $3,813,077 $3,836,108 Net income three months ended March 31, 1996. . . . . . . . . 515 50,941 51,456 ---------------------------------------- Balance as of March 31, 1996 . . . . . $ 23,546 $3,864,018 $3,887,564 ---------------------------------------- ----------------------------------------
5 KEYSTONE MORTGAGE FUND, A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31 1996 1995 --------------------------- OPERATING ACTIVITIES: Net Income (loss). . . . . . . . . . . . . . . . . . $ 51,456 $(197,176) Amortization of net origination fees . . . . . . . (275) (275) Depreciation expense from investment in real estate. . . . . . . . . . . . . . . . . . 13,000 13,700 Decrease in interest receivable. . . . . . . . . . 28 5,082 Increase in accounts payable and other liabilities . . . . . . . . . . . . . . . . 2,498 261,811 --------------------------- NET CASH PROVIDED BY OPERATING ACTIVITIES. . . . . . . . . . . . 66,707 83,142 INVESTING ACTIVITIES: Decrease in trust deed receivable. . . . . . . . . . 3,170 9,434 Purchase of short-term investments . . . . . . . . . (201,320) (145,974) --------------------------- NET CASH USED IN INVESTING ACTIVITIES. . . . . . . . . . . . (131,443) (136,540) --------------------------- Decrease in cash and cash equivalents. . . . . . . . . . . . . . . . . . (131,443) (53,398) Cash and cash equivalents at beginning of year. . . . . . . . . . . . . . . . 157,848 97,409 --------------------------- CASH AND CASH EQUIVALENTS AT END OF PERIOD . . . . . . . . . . . . . $ 26,405 $ 44,011 --------------------------- ---------------------------
6 KEYSTONE MORTGAGE FUND, A CALIFORNIA LIMITED PARTNERSHIP NOTES TO CONDENSED FINANCIAL STATEMENTS NOTE A - UNAUDITED BASIS OF PRESENTATION The accompanying unaudited condensed financial statements have been prepared by Keystone Mortgage Fund in accordance with generally accepted accounting principles, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying condensed financial statements contain all adjustments necessary, which were of normal recurring nature, for a fair statement of the results for the interim periods presented. It is suggested that these condensed financial statements be read in conjunction with the financial statements and the notes thereto included in Form 10-K for the year ended December 31, 1995 filed by the Company under the Securities Exchange Act of 1934. 7 KEYSTONE MORTGAGE FUND, A CALIFORNIA LIMITED PARTNERSHIP NOTES TO FINANCIAL STATEMENTS (CONTINUED) (B) TRUST DEED NOTES RECEIVABLE
MONTHLY PAYMENT, INCLUDING DECEMBER 31 MARCH 31 INTEREST 1995 1996 -------- ---- ---- First trust deed on an office/warehouse/light industrial building, interest rate of 10.375%, due November 1, 1997 . . . . . $9,965 $1,031,390 $1,028,220 ------- ------- Less net deferred loan origination fees . . . . . . . . . . . . . . . 2,020 1,745 Less Current portion. . . . . . . . . . . . . . . . . . . . . . . . . 11,894 11,983 -------------------------- $1,017,476 $1,014,492 -------------------------- --------------------------
8 KEYSTONE MORTGAGE FUND, A CALIFORNIA LIMITED PARTNERSHIP NOTES TO FINANCIAL STATEMENTS (CONTINUED) ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Total revenues for the three months ended March 31, 1996 decreased $4,221 or 3.7% over the comparable 1995 period. Cash flow from principal payments have been distributed to the limited partners less required reserves. These amounts represent return of capital which has caused the decrease in income producing assets the past few years. Total expenses decreased $252,853 for the three months ended March 31, 1996 over the same period March 31, 1995. Servicing related expenses increased 76.2% and general and administrative expenses decreased $261,587 for the three months ended March 31, 1996 over the same period March 31, 1995. Expenses related to real estate acquired in settlement of loans decreased 6.0% for the three months ended March 31, 1996 as compared to the same period March 31, 1995. During the first quarter of 1995, a determination was made by the general partners to seek reimbursement for which they were otherwise entitled. The amount of general and administrative expenses were determined to be $270,000. Net income per limited partnership unit increased from $14.86 loss per unit for the three months ended March 31, 1995 to a profit of $3.88 per unit for the three months ended March 31, 1996. This increase in unit income resulted mainly from the reduction in general and administrative expenses. The Partnership working capital increased by $67,440 during the three months ended March 31, 1996. The Partnership has adequate working capital and cash reserves to carry on its business. 9 PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) The Registrant filed no reports on Form 8-K during the quarter ended March 31, 1996. 10 SIGNATURES 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. KEYSTONE MORTGAGE FUND a California Limited Partnership Date: May , 1996 /s/ JOHN P. SULLIVAN ----------------------------------- Keystone Mortgage Company By: John P. Sullivan, President Date: May , 1996 /s/ JOHN P. SULLIVAN ----------------------------------- John P. Sullivan General Partner Date: May , 1996 /s/ CHRISTOPHER E. TURNER ----------------------------------- Christopher E. Turner General Partner 11 EX-27 2 EXHIBIT 27 (FDS)
5 3-MOS DEC-31-1995 MAR-31-1996 26,405 1,973,918 1,070,364 0 0 2,056,195 1,300,000 210,196 4,160,491 272,927 0 0 0 0 3,887,564 4,160,491 0 108,203 0 0 56,747 0 0 51,456 0 51,456 0 0 0 51,456 3.88 3.88
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