-----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, PqbKujSiWGIyCVFL+L+YqA57rX9RIoRJq4Slg9xZl53VIx8Efz7U5SSwXaiuTsA/ lbvsKPcmrmw+17kBo+CkVg== 0000912057-96-015142.txt : 19960724 0000912057-96-015142.hdr.sgml : 19960724 ACCESSION NUMBER: 0000912057-96-015142 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960722 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: 96597324 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 JUNE 30, 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 June 30, 1996 . . .3 (b) Condensed Statements of Income, six and three months ended, June 30, 1996 and 1995. . . . . . . . . . . . . . . . . . . . . .4 (c) Condensed Statements of Partners' Capital (Deficit) for the year ended December 31, 1995 and the six months ended June 30, 1996 . . . . . . . . . . . . . . . . . . . . . . . .5 (d) Condensed Statements of Cash Flows, six months ended June 30, 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 JUNE 30 1995 1996 -------------------------- Current assets: Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . $ 157,848 $ 10,896 Short-term investments (market value of $1,775,183 in 1995 and $1,938,848 in 1996). . . . . . . . . . . . . . . . . . . 1,772,598 1,903,052 Interest receivable on trust deed notes receivable . . . . . . . 8,917 8,861 Other receivable . . . . . . . . . . . . . . . . . . . . . . . . 35,000 35,000 Current portion of trust deed notes receivable (note B). . . . . 11,894 11,993 ------------------------- Total current assets. . . . . . . . . . . . . . . . . . . . 1,986,257 1,969,802 Investment in real estate, net . . . . . . . . . . . . . . . . . . . 1,102,804 1,076,804 Trust deed notes receivable, net (note B). . . . . . . . . . . . . . 1,017,476 1,011,503 ------------------------- $4,106,537 $4,058,109 ------------------------- ------------------------- LIABILITIES AND PARTNERS' CAPITAL Current Liabilities: Accounts payable and other liabilities . . . . . . . . . . . . . $ 429 $ 428 Due general partner. . . . . . . . . . . . . . . . . . . . . . . 270,000 275,000 ------------------------- Total current liabilities . . . . . . . . . . . . . . . . . 270,429 275,428 Partners' capital: General Partners . . . . . . . . . . . . . . . . . . . . . . . . 23,031 23,882 Limited partners - authorized 20,000 units, outstanding 13,272 units . . . . . . . . . . . . . . . . . . . . . . . . 3,813,077 3,758,799 ------------------------- 3,836,108 3,782,681 ------------------------- $4,106,537 $4,058,109 ------------------------- -------------------------
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)
Six Months Ended Three Months Ended June 30 June 30 1996 1995 1996 1995 ------------------------ ------------------------- Revenue: Interest on mortgage loans . . . . . . . . . . $ 53,860 $ 77,518 $ 26,889 $ 43,135 Interest on short-term investments . . . . . . 52,279 63,794 21,960 36,375 Rental and other revenue from investment in real estate. . . . . . . . . . . . . . . . . . 113,170 93,577 62,257 45,323 --------- --------- --------- --------- 219,309 234,889 111,106 124,833 Expenses: Servicing related expenses . . . . . . . . . . 43,484 45,722 19,043 31,847 Administrative and general expenses. . . . . . 6,380 270,522 2,610 5,165 Expenses related to real estate acquired in settlement of loans . . . . . . . . . . . . . 84,338 56,000 55,802 28,000 --------- --------- --------- --------- 134,202 372,244 77,455 65,012 NET INCOME (LOSS). . . . . . . . . . . $ 85,107 $(137,355) $ 33,651 $ 59,821 --------- --------- --------- --------- --------- --------- --------- --------- Weighted average number of limited partnership units outstanding . . . . . 13,272 13,272 13,272 13,272 --------- --------- --------- --------- --------- --------- --------- --------- Net income (loss) per limited partnership unit. . . . . . . . . . . . . . . . $ 6.41 $ (10.35) $ 2.53 $ 4.51 --------- --------- --------- --------- --------- --------- --------- ---------
See notes to financial statements 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 June 30, 1996 . . . . . . . . . . . 851 84,256 85,107 Distributions. . . . . . . . . . . . . . . . (138,534) (138,534) ---------------------------------- Balance as of June 30, 1996. . . . . . . . . $ 23,882 $3,758,799 $3,782,681 ---------- ---------- ---------- ---------- ---------- ----------
5 KEYSTONE MORTGAGE FUND, A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS SIX MONTHS ENDED JUNE 30 1996 1995 ------------------------ OPERATING ACTIVITIES: Net Income (loss). . . . . . . . . . . . . . . . . . $ 85,107 $(137,355) Changes in operating assets & liabilities: Decrease in interest receivable. . . . . . . . . . 56 5,191 Depreciation expense for investment in real estate. . . . . . . . . . . . . . . . . 26,000 26,000 Decrease in accounts payable . . . . . . . . . . . (1) (1,296) Increase in due general partners . . . . . . . . . 5,000 265,000 --------- --------- NET CASH PROVIDED BY OPERATING ACTIVITIES. . . . . . . . . . . . . . 116,162 157,540 INVESTING ACTIVITIES: Decrease in trust deed receivable. . . . . . . . . . 5,874 19,260 Increase in short-term investments . . . . . . . . . (130,454) (105,830) FINANCING ACTIVITIES: Distributions and withdrawals. . . . . . . . . . . . (138,534) (154,396) --------- --------- Increase (decrease) in cash and cash equivalents . . (146,952) (83,426) Cash and cash equivalents at beginning of year . . . 157,848 97,409 --------- --------- CASH AND CASH EQUIVALENTS AT END OF PERIOD . . . . . . . . . . . . . . . $ 10,896 $ 13,983 --------- --------- --------- --------- See notes to financial statements 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 JUNE 30 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 $1,024,966 -------- -------- Less net deferred loan origination fees. . . . . . . . . . . . . 2,020 1,470 Less Current portion . . . . . . . . . . . . . . . . . . . . . . 11,894 11,993 ---------- ---------- $1,017,476 $1,011,503 ---------- ---------- ---------- ----------
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 six months ended June 30, 1996 increased $14,420 or 7.1% over the comparable 1995 period. Total revenues for the three months ended June 30, 1996 increased 1.2% compared to the same period ending June 30, 1995. 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 over the past few years. Servicing related expenses decreased 4.9% for the six months and decreased 40.2% for the three months ended June 30, 1996 over the comparable periods ended June 30, 1995. General and administrative expenses decreased $264,142 for the six months and decreased $2,655 for the three months ended June 30, 1996 over the comparable periods ended June 30, 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 $265,000 at June 30, 1995. Expenses related to real estate acquired in settlement of loans increased 50.6% for the six months ended June 30, 1996 and increased 99.3% for the three months ended June 30, 1996 over the comparable periods June 30, 1995. Net income for the six months and the three months ended June 30, 1996 increased $222,462 for the six months and decreased $26,170 for the three months over the same periods June 30, 1995. The Partnership's working capital decreased by $21,454 during the six months ended June 30, 1995. The Partnership has adequate working capital and cash reserves to carry on its business. The Partnership continues to distribute to the Limited Partners principal repayments (less required reserves). 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 June 30, 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: July 22, 1996 /s/ JOHN P. SULLIVAN ----------------------------------- Keystone Mortgage Company By: John P. Sullivan, President Date: July 22, 1996 /s/ JOHN P. SULLIVAN ----------------------------------- John P. Sullivan General Partner Date: July 22, 1996 /s/ CHRISTOPHER E. TURNER ----------------------------------- Christopher E. Turner General Partner 11 EX-27 2 EXHIBIT 27 FINANCIAL DATA SCHEDULE
5 6-MOS DEC-31-1995 JUN-30-1996 10,896 1,903,052 1,946,913 0 0 1,969,802 1,300,000 223,196 4,058,109 275,428 0 0 0 0 3,782,681 4,058,109 0 219,309 0 0 134,202 0 0 85,107 0 85,107 0 0 0 85,107 0 0
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