-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, i6JGTIadNvpq2bjOKbARyZd+UgxRZYWeDBx9RQE5EyJz3npSKo9SHEJ1RjorEVyd wOleUlkNFRfhrZcF7CTk+Q== 0000912057-95-005558.txt : 19950725 0000912057-95-005558.hdr.sgml : 19950725 ACCESSION NUMBER: 0000912057-95-005558 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950724 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: 95555537 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 10-Q - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 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, 1995 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 (Zip Code) executive offices) Registrant's telephone number, including area code: (310) 479-4121 ------------------------ Indicated by check mark whether the registrant (1) has filed all reports 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, 1994 and June 30, 1995........ 3 (b) Condensed Statements of Income, six and three months ended, June 30, 1995 and 1994............. 4 (c) Condensed Statements of Partners' Capital (Deficit) for the year ended December 31, 1994 and the six months ended June 30, 1995.... 5 (d) Condensed Statements of Cash Flows, six months ended June 30, 1995 and 1994............. 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
DECEMBER 31 JUNE 30 1994 1995 ----------- ---------- CURRENT ASSETS Cash and cash equivalents............. $ 97,409 $ 13,983 Short-term investments................ 2,275,573 2,381,403 Interest receivable on trust deed notes receivable..................... 18,761 13,570 Current portion of trust deed notes receivable (note B).................. 580,508 567,401 ----------- ---------- TOTAL CURRENT ASSETS................ 2,972,251 2,976,357 Investment in real estate, net.......... 1,155,504 1,128,804 Trust deed notes receivable, net (note B)..................................... 1,028,372 1,022,919 ----------- ---------- $ 5,156,127 $5,128,080 ----------- ---------- ----------- ---------- LIABILITIES AND PARTNERS' CAPITAL CURRENT LIABILITIES Due general partner................... $ 265,000 Accounts payable...................... $ 1,957 661 ----------- ---------- TOTAL CURRENT LIABILITIES........... 1,957 265,661 PARTNERS' CAPITAL General Partners...................... 23,047 21,673 Limited Partners -- 20,000 units authorized, 13,272 units outstanding.......................... 5,131,123 4,840,746 ----------- ---------- 5,154,170 4,862,419 ----------- ---------- $ 5,156,127 $5,128,080 ----------- ---------- ----------- ----------
See accompanying notes to 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 ------------------- ------------------ 1995 1994 1995 1994 --------- -------- -------- -------- Revenue: Interest on mortgage loans............ $ 77,518 $237,783 $ 43,135 $115,093 Interest on short-term investments.... 63,794 18,742 36,375 9,333 Rental and other revenue from investment in real estate............ 63,577 40,920 30,323 2,627 --------- -------- -------- -------- 204,889 297,445 109,833 127,053 Expenses: Servicing related expenses............ 45,722 42,472 31,847 16,965 Administrative and general expenses... 270,522 3,179 5,165 1,129 Expenses related to real estate acquired in settlement of loans...... 26,000 41,462 13,000 25,824 --------- -------- -------- -------- 342,244 87,113 50,012 43,918 --------- -------- -------- -------- NET INCOME (LOSS)................... $(137,355) $210,332 $ 59,821 $ 83,135 --------- -------- -------- -------- --------- -------- -------- -------- Weighted average number of limited partnership units outstanding.......... 13,272 13,272 13,272 13,272 --------- -------- -------- -------- --------- -------- -------- -------- Net income (loss) per limited partnership unit....................... $ (10.35) $ 15.85 $ 4.51 $ 6.26 --------- -------- -------- -------- --------- -------- -------- --------
See notes to financial statements. 4 KEYSTONE MORTGAGE FUND, A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF PARTNERS' CAPITAL
GENERAL LIMITED PARTNERS PARTNERS TOTAL -------- ---------- ---------- Balance at December 31, 1994............ $ 23,047 $5,131,123 $5,154,170 Net loss six months ended June 30, 1995................................... (1,374) (135,981) (137,355) Distributions........................... (154,396) (154,396) -------- ---------- ---------- Balance at June 30, 1995................ $ 21,673 $4,840,746 $4,862,419 -------- ---------- ---------- -------- ---------- ----------
5 KEYSTONE MORTGAGE FUND, A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30 --------------------- 1995 1994 --------- ---------- OPERATING ACTIVITIES: Net income (loss)..................... $(137,355) $ 210,332 Changes in operating assets & liabilities: Decrease in interest receivable..... 5,191 14,303 Depreciation expense for investment in real estate..................... 26,000 Decrease in accounts payable........ (1,296) (920) Increase in due general partners.... 265,000 Decrease in other assets............ 29,690 --------- ---------- NET CASH PROVIDED BY OPERATING ACTIVITIES....................... 157,540 253,405 INVESTING ACTIVITIES: Decrease in trust deeds receivable.... 19,260 1,710,325 Increase in short term investments.... (105,830) FINANCING ACTIVITIES: Distributions and withdrawals......... (154,396) (754,104) --------- ---------- Increase (decrease) in cash and cash equivalents.......................... (83,426) 1,209,626 Cash and cash equivalents at beginning of year.............................. 97,409 1,228,378 --------- ---------- CASH AND CASH EQUIVALENTS AT END OF PERIOD........................ $ 13,983 $2,438,004 --------- ---------- --------- ----------
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, 1994 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 1994 1995 --------- ------------ ---------- Second trust deed on an office/warehouse/light manufacturing facility, interest rate of 10.0%, due December 1, 1995....................... $6,913 $ 568,716 $ 555,399 First trust deed on an office/warehouse/light industrial building, interest rate of 10.375%, due November 1, 1997....................... $9,965 1,043,284 1,037,491 --------- ------------ ---------- --------- 1,612,000 1,592,890 Less net deferred loan origination fees................................... 3,120 2,570 Less current portion.................... 580,508 567,401 ------------ ---------- $ 1,028,372 $1,022,919 ------------ ---------- ------------ ----------
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, 1995 decreased $92,556 or 31.1% over the comparable 1994 period. Total revenues for the three months ended June 30, 1995 decreased 13.5% compared to the same period ending June 30, 1994. These decreases were due to the decrease of income producing assets during the past year. 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. Servicing related expenses increased 7.8% for the six months and increased 87.7% for the three months ended June 30, 1995 over the comparable periods ended June 30, 1994. General and administrative expenses increased $247,343 for the six months and increased $4,036 for the three months ended June 30, 1995 over the comparable periods ended June 30, 1994. 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 decreased 37.3% for the six months ended June 30, 1995 and decreased 49.7% for the three months ended June 30, 1995 over the comparable periods June 30, 1994. Net income for the six months and the three months ended June 30, 1995 decreased $347,687 for the six months and $23,314 or 28.1% for the three months ended June 30, 1995 over the same periods June 30, 1994. The Partnership's working capital increased by $259,598 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, 1995. 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: , 1995 /s/ JOHN P. SULLIVAN -------------------------------------------- Keystone Mortgage Company By: John P. Sullivan, President Date: , 1995 /s/ JOHN P. SULLIVAN -------------------------------------------- John P. Sullivan General Partner Date: , 1995 /s/ CHRISTOPHER E. TURNER -------------------------------------------- Christopher E. Turner General Partner
11 EX-27 2 EXHIBIT 27
5 6-MOS DEC-31-1995 JUN-30-1995 13,983 2,381,403 1,606,460 0 0 2,976,357 1,335,351 165,347 5,128,080 256,661 0 0 0 0 4,862,419 5,128,080 0 204,889 0 342,244 0 0 0 (137,355) 0 0 0 0 0 (137,355) (10.35) (10.35)
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