-----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, OIek7JfHzeCD+bAVfYPpX5PZ9kIFao4MCF0Pw0rvo1/2uG67fJIBejlWVi2xRZTI 7fx4gPty3VugvehrntBKYA== 0000912057-95-009842.txt : 19951119 0000912057-95-009842.hdr.sgml : 19951119 ACCESSION NUMBER: 0000912057-95-009842 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951114 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: 95591194 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 SEPTEMBER 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 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, 1994 and September 30, 1995. . . . . . . . . . . . . . . . . . . . . . . .3 (b) Condensed Statements of Income, three and nine months ended, September 30, 1995 and 1994. . . . . . . . . . . . . . . . . . .4 (c) Condensed Statements of Partners' Capital (Deficit) for the year ended December 31, 1994 and the nine months ended September 30, 1995. . . . . . . . . . . . . . . . .5 (d) Condensed Statements of Cash Flows, nine months ended September 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 SEPTEMBER 30 1994 1995 ------------------------- CURRENT ASSETS Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . $ 97,409 $ 10,473 Short-term investments. . . . . . . . . . . . . . . . . . . . . . .2,275,573 2,458,670 Interest receivable on trust deed notes receivable. . . . . . . . . . 18,761 13,534 Current portion of trust deed notes receivable (note B) . . . . . . 580,508 582,244 ----------------------------- TOTAL CURRENT ASSETS . . . . . . . . . . . . . . . . . . . . 2,972,251 3,064,921 Investment in real estate, net . . . . . . . . . . . . . . . . . . . . 1,155,504 1,115,804 Trust deed notes receivable, net (note B). . . . . . . . . . . . . . . 1,028,372 998,379 ----------------------------- $5,156,127 $5,179,104 ----------------------------- ----------------------------- LIABILITIES AND PARTNERS' CAPITAL CURRENT LIABILITIES Due general partner . . . . . . . . . . . . . . . . . . . . . . . . . . $ 267,500 Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . $ 1,957 661 ----------------------------- TOTAL CURRENT LIABILITIES. . . . . . . . . . . . . . . . . . 1,957 268,161 PARTNERS' CAPITAL General Partners. . . . . . . . . . . . . . . . . . . . . . . . . . . 23,047 22,159 Limited partners - 20,000 units authorized, 13272 units outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . .5,131,123 4,888,784 ----------------------------- 5,154,170 4,910,943 ----------------------------- $5,156,127 $5,179,104 ----------------------------- -----------------------------
See accompanying notes to financial statements. 3 KEYSTONE MORTGAGE FUND, A CALIFORNIA LIMITED PARTNERSHIP CONDENSED STATEMENTS OF INCOME (UNAUDITED)
Nine Months Ended Three Months Ended September 30 September 30 ------------------------------------------------ 1995 1994 1995 1994 ---- ---- ---- ---- Revenue: Interest on mortgage loans . . . . . . . . . . . . . $118,419 $315,766 40,901 77,983 Interest on short-term investments . . . . . . . . . 78,068 23,168 14,274 4,426 Rental and other revenue from investment in real estate. . . . . . . . . . . . . . . . . . . . . 88,997 67,798 25,420 26,878 --------- -------- ------- ------- 285,484 406,732 80,595 109,287 Expenses: Servicing related expenses . . . . . . . . . . . . . 39,978 51,084 7,900 8,611 Administrative and general expenses. . . . . . . . . .275,661 3,374 5,139 195 Expenses related to real estate acquired in settlement of loans . . . . . . . . . . . . . . . . 58,676 54,462 19,032 13,001 --------- -------- ------- ------- 374,315 108,920 32,071 21,807 --------- -------- ------- ------- NET INCOME (LOSS). . . . . . . . . . . . . . . $(88,831) $297,812 $48,524 $87,480 --------- -------- ------- ------- --------- -------- ------- ------- Weighted average number of limited partnership units outstanding. . . . . . . . . . . . . . . . . . 13,272 13,272 13,272 13,272 --------- -------- ------- ------- --------- -------- ------- ------- Net income per limited partnership unit. . . . . . . . . $ (6.69) $ 22.44 $ 3.66 $ 6.59 --------- -------- ------- ------- --------- -------- ------- -------
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, 1994 . . . . . . . . . . . . . $ 23,047 $5,131,123 $5,154,170 Net income nine months ended September 30, 1995. . . . . (888) (87,943) (88,831) Distributions. . . . . . . . . . . . . . . . . . . . . . (154,396) (154,396) ---------- ---------- ---------- Balance as of September 30, 1995 . . . . . . . . . . . $ 22,159 $4,888,784 $4,910,943 ---------- ---------- ---------- ---------- ---------- ----------
5 KEYSTONE MORTGAGE FUND, A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30 ------------------------------ 1995 1994 ---- ---- OPERATING ACTIVITIES: Net Income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . $ (88,831) $ 297,812 Changes in operating assets & liabilities: Depreciation expense from investment in real estate. . . . . . 39,700 Amortization of net origination fees . . . . . . . . . . . . . (775) (5,500) Decrease in interest and account receivable. . . . . . . . . . 5,227 25,619 Decrease in accounts payable . . . . . . . . . . . . . . . . . (1,296) (1,794) Increase in due general partners . . . . . . . . . . . . . . . 267,500 Decrease in other assets . . . . . . . . . . . . . . . . . . . 43,835 ----------- ---------- NET CASH PROVIDED BY OPERATING ACTIVITIES . . . . . . . . 221,525 359,972 INVESTING ACTIVITIES: Decrease in trust deed receivable . . . . . . . . . . . . . . . . . 29,032 2,844,941 Decrease in short-term investments. . . . . . . . . . . . . . . . . (183,097) FINANCING ACTIVITIES: Distributions and withdrawals . . . . . . . . . . . . . . . . . . . (154,396) (754,104) ----------- ---------- Increase (decrease) in cash and cash equivalents. . . . . . . . . . (86,936) 2,450,809 Cash and cash equivalents at beginning of year. . . . . . . . . . . 97,409 1,228,378 ----------- ---------- CASH AND CASH EQUIVALENTS AT END OF PERIOD. . . . . . . . $ 10,473 $3,679,187 ----------- ---------- ----------- ----------
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 SEPTEMBER 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 $ 548,488 First trust deed on an office/warehouse/light industrial building, interest rate of 10.375%, due November 1, 1997. . . . . $9,965 1,043,284 1,034,480 ------ ---------- --------- ------ 1,612,000 1,582,968 Less net deferred loan origination fees. . . . . . . . . . . . . 3,120 2,345 Less current portion . . . . . . . . . . . . . . . . . . . . . . 580,508 582,244 ---------- --------- $1,028,372 $ 998,379 ---------- --------- ---------- ---------
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 nine months ended September 30, 1995 decreased $121,248 or 29.8% over the comparable 1994 period. Total revenues for the three months ended September 30, 1995 decreased $28,692 or 26.2% compared to the same period ending September 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. Service related expenses decreased 21.7% for the nine months and decreased 8.2% for the three months ended September 30, 1995 over the comparable periods ended September 30, 1994. General and administrative expenses increased $272,287 for the nine months and increased $4,944 for the three months ended September 30, 1995 over the comparable periods ended September 30, 1994. Expenses related to real estate acquired in settlement of loans increased 7.7% for the nine months ended September 30, 1995 over the same period September 30, 1994 and increased 46.4% for the three months ended September 30, 1995 over the comparable periods 1994. Net income for the nine months and the three months ended September 30, 1995 decreased $386,643 or 129.8% for the nine months and decreased $38,956 or 44.5% for the three months ended September 30, 1995 over the same periods September 30, 1994. The Partnership working capital decreased by $173,534 during the nine months ended September 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 September 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 FINANCIAL DATA SCHEDULE
5 9-MOS DEC-31-1995 SEP-30-1995 10,473 2,458,670 1,594,157 0 0 3,064,921 1,335,351 178,347 5,179,104 268,161 0 0 0 0 4,910,943 5,179,104 0 285,484 0 374,315 0 0 0 (88,831) 0 (88,831) 0 0 0 (88,831) (6.69) (6.69)
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