-----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, V4ig68OYCnQJD0QQFVxnr2JtVJo+2tagaaoFzw6k2F+z25XP0rlJ3+7ujYWHl659 dRrhPUjNJFkmtrmBb1VpVg== 0000889812-96-001687.txt : 19961115 0000889812-96-001687.hdr.sgml : 19961115 ACCESSION NUMBER: 0000889812-96-001687 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961113 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONCORD MILESTONE PLUS L P CENTRAL INDEX KEY: 0000808460 STANDARD INDUSTRIAL CLASSIFICATION: LESSORS OF REAL PROPERTY, NEC [6519] IRS NUMBER: 521494615 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-16757 FILM NUMBER: 96660790 BUSINESS ADDRESS: STREET 1: 5200 TOWN CENTER CIR STREET 2: 4TH FLOOR CITY: BOCA RATON STATE: FL ZIP: 33486 BUSINESS PHONE: 4073949260 10-Q 1 QUARTERLY REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------ FORM 10-Q (mark one) X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) - --- OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 1996 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 000-16757 CONCORD MILESTONE PLUS, L.P. ------------------------------------------------------ (Exact Name of Registrant as Specified in its Charter) Delaware 52-1494615 - ------------------------------- ------------------------------------ (State or Other Jurisdiction of (I.R.S. Employer Identification No.) Incorporation or Organization) 5200 TOWN CENTER CIRCLE 4TH FLOOR BOCA RATON, FLORIDA 33486 - ---------------------------------------- ---------- (Address of Principal Executive Offices) (Zip Code) (561) 394-9260 --------------------------------------------------- Registrant's Telephone Number, Including Area Code --------------------------------------------------- Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report Indicate by check mark whether the registrant (1) has 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 for the past 90 days. Yes X No ----- ----- PART I - FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the provisions of Rule 10-01 of Regulation S-X and the instructions to Form 10-Q. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain reclassifications were made to the accompanying 1995 financial statements to conform to the 1996 presentation. -2- CONCORD MILESTONE PLUS, L.P. (a Limited Partnership) BALANCE SHEETS SEPTEMBER 30, 1996 (Unaudited) AND DECEMBER 31, 1995
ASSETS September 30, 1996 December 31, 1995 ------------------- ----------------- Property, at cost Building and improvements $ 15,350,829 $ 15,262,476 Less: accumulated depreciation 4,684,122 4,253,132 ------------ ------------ Building and improvements, net 10,666,707 11,009,344 Land 10,987,034 10,987,034 ------------ ------------ Total property 21,653,741 21,996,378 Cash and cash equivalents 711,709 218,872 Accounts receivable 183,739 168,344 Prepaid expenses 49,562 32,690 Other assets, net 66,799 73,454 Due from affiliates, net 0 47,879 ------------ ------------ Total assets $ 22,665,550 $ 22,537,617 ============ ============ LIABILITIES AND PARTNERS' CAPITAL Liabilities: Bonds payable, net $ 16,465,991 $ 16,425,967 Accrued interest 520,981 130,246 Accrued Expenses and other liabilities 319,923 337,268 Due to affiliates 22,240 0 ------------ ------------ Total liabilities 17,329,135 16,893,481 ------------ ------------ Partners' capital: General partner (69,201) (66,124) Limited partners: Class A Interests, 1,518,800 5,405,616 5,710,260 Class B Interests, 2,111,072 0 0 ------------ ------------ Total partners' capital 5,336,415 5,644,136 ------------ ------------ Total liabilities and partners' capital $ 22,665,550 $ 22,537,617 ============ ============
-3- CONCORD MILESTONE PLUS, L.P. (a Limited Partnership) STATEMENTS OF REVENUES AND EXPENSES (Unaudited) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
September 30, 1996 September 30, 1995 ------------------ ------------------ Revenues: Rent $ 638,576 $ 644,938 Reimbursed expenses 108,420 150,460 Interest and other income 4,966 8,819 --------- --------- Total revenues 751,962 804,217 --------- --------- Expenses: Interest expense 390,735 380,453 Depreciation and amortization 160,996 163,300 Management and property expenses 223,001 225,965 Professional fees and other expenses 28,152 26,074 --------- --------- Total expenses 802,884 795,792 --------- --------- Net (loss) income $ (50,922) $ 8,425 ========= ========= (Loss) income per weighted average Limited Partnership 100 Class A Interests outstanding $ (3.35) $ .55 ========= ========= Weighted average number of 100 Class A interests outstanding 15,188 15,188 ========= =========
-4- CONCORD MILESTONE PLUS, L.P. (a Limited Partnership) STATEMENTS OF REVENUES AND EXPENSES (Unaudited) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
September 30, 1996 September 30, 1995 ------------------ ------------------ Revenues: Rent $ 1,958,228 $ 1,896,016 Reimbursed expenses 303,868 438,466 Interest and other income 13,337 23,081 ----------- ----------- Total revenues 2,275,433 2,357,563 ----------- ----------- Expenses: Interest expense 1,172,205 1,141,358 Depreciation and amortization 479,898 492,344 Management and property expenses 685,256 752,472 Professional fees and other expenses 99,467 89,787 ----------- ----------- Total expenses 2,436,826 2,475,961 ----------- ----------- Net loss $ (161,393) $ (118,398) =========== =========== Loss per weighted average Limited Partnership 100 Class A Interests outstanding $ (10.62) $ (7.80) =========== =========== Weighted average number of 100 Class A interests outstanding 15,188 15,188 =========== ===========
-5- CONCORD MILESTONE PLUS, L.P. (a Limited Partnership) STATEMENTS OF CHANGES IN PARTNERS' CAPITAL FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 (Unaudited) and FOR THE YEAR ENDED DECEMBER 31, 1995
General Class A Class B Total Partner Interests Interests ----------- ----------- ----------- ----------- PARTNERS' CAPITAL (DEFICIT) December 31, 1994 $ 6,151,653 $ (61,049) $ 6,212,702 $ 0 Distributions (199,707) (1,997) (197,710) 0 Net Loss (307,810) (3,078) (304,732) 0 ----------- ----------- ----------- ----------- PARTNERS' CAPITAL (DEFICIT) December 31, 1995 5,644,136 (66,124) 5,710,260 0 Distributions (146,328) (1,463) (144,865) 0 Net Loss (161,393) (1,614) (159,779) 0 ----------- ----------- ----------- ----------- PARTNERS' CAPITAL (DEFICIT) September 30, 1996 $ 5,336,415 $ (69,201) $ 5,405,616 $ 0 =========== =========== =========== ===========
-6- CONCORD MILESTONE PLUS, L.P. (a Limited Partnership) STATEMENTS OF CASH FLOWS (Unaudited) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
September 30, 1996 September 30, 1995 ------------------ ------------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $(161,393) $(118,398) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 479,898 492,344 Change in operating assets and liabilities: (Increase) decrease in accounts receivable (15,395) 5,521 (Increase) decrease in prepaid expenses (16,872) 11,155 Increase in other assets, net (2,229) (62,603) Decrease (increase) in due from affiliates, net 47,879 (26,209) Increase in accrued interest 390,735 380,452 (Decrease) increase in accrued expenses and other liabilities (17,345) 14,766 Increase (Decrease) in due to affiliate 22,240 (38,827) --------- --------- Net cash provided by operating activities 727,518 658,201 --------- --------- CASH FLOWS FROM INVESTING ACTIVITY: Property improvements (88,353) (49,398) --------- --------- CASH FLOWS FROM FINANCING ACTIVITY: Cash distributions to partners (146,328) (149,825) --------- --------- NET INCREASE IN CASH AND CASH EQUIVALENTS 492,837 458,978 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 218,872 344,020 --------- --------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 711,709 $ 802,998 ========= ========= SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for interest $ 781,470 $ 507,270 ========= =========
-7- Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Organization and Capitalization Concord Milestone Plus, L.P., a Delaware limited partnership (the "Partnership"), was formed on December 12, 1986, for the purpose of investing in existing income-producing commercial and industrial real estate. The Partnership began operations on August 20, 1987, and currently owns and operates three shopping centers located in Searcy, Arkansas; Valencia, California; and Green Valley, Arizona. The Partnership commenced a public offering on April 8, 1987 in order to fund the Partnership's real property acquisitions. The Partnership terminated its public offering on April 2, 1988 and was fully subscribed to with a total of 16,452 Bond Units and 15,188 Equity Units issued. Each Bond Unit consists of $1,000 principal amount of Bonds and 36 Class B Interests. Each Equity Unit consists of 100 Class A Interests and 100 Class B Interests. Capital contributions to the Partnership consisted of $15,187,840 from the sale of the Equity Units and $592,272 which represent the Class B Interests from the sale of the Bond Units. Results of Operations Comparison of Quarter Ended September 30, 1996 to Quarter Ended September 30, 1995 Revenues of the Partnership decreased $52,255, or 6%, to $751,962 for the quarter ended September 30, 1996 as compared to $804,217 for the quarter ended September 30, 1995 primarily due a decrease in reimbursed expenses. Reimbursed expenses decreased due to a decrease in common area maintenance expenses and insurance expense in 1996. Management and property expenses decreased $2,964, or 1%, to $223,001 for the quarter ended September 30, 1996 as compared to $225,965 for the quarter ended September 30, 1995 primarily due to a decrease in common area expenses and insurance expense. Common area expenses decreased as a result of cost savings efforts by management and insurance expense decreased primarily due to a lower premium in 1996. Interest expense increased $10,282, or 3%, to $390,735 for the quarter ended September 30, 1996 as compared to $380,453 for the quarter ended September 30, 1995 due to the scheduled increase in the interest rate on the Partnership's bonds from 9.25% in 1995 to 9.50% in 1996. Depreciation and amortization expense decreased $2,304, or 1%, to $160,996 for the quarter ended September 30, 1996 as compared to $163,300 for the quarter ended September 30,1995 due to a decrease in the amortization of the net bond premium and discount in 1996. -8- Comparison of Nine Months Ended September 30,1996 to Nine Months Ended September 30, 1995 Revenues of the Partnership decreased $82,130, or 4%, to $2,275,433 for the nine months ended September 30, 1996 as compared to $2,357,563 for the nine months ended September 30, 1995 primarily due to the net effect of an increase in rents of approximately $62,000 and a decrease in reimbursed expenses of approximately $135,000. Rents increased due to increased occupancy at the Old Orchard Shopping Center located in Valencia, California, compared to the same period last year. Reimbursed expenses decreased primarily due to a decrease in common area maintenance expenses and insurance expense in 1996. Management and property expenses decreased $67,216, or 10%, to $685,256 for the nine months ended September 30, 1996 as compared to $752,472 for the nine months ended September 30, 1995 primarily due to a decrease in common area maintenance expenses and insurance expense. Common area maintenance expenses decreased as a result of cost savings efforts by management and insurance expense decreased due to a lower premium in 1996. Interest expense increased $30,847, or 3%, to $1,172,205 for the nine months ended September 30, 1996 as compared to $1,141,358 for the nine months ended September 30, 1995 due to the scheduled increase in the interest rate on the Partnership's bonds from 9.25% in 1995 to 9.50% in 1996. Depreciation and amortization expense decreased $12,446, or 3%, to $479,898 for the nine months ended September 30, 1996 as compared to $492,344 for the nine months ended September 30, 1995 due to a decrease in the amortization of the net bond premium and discount in 1996. Liquidity and Capital Resources The General Partner believes that the Partnership's working capital is sufficient to meet the Partnership's current operating requirements for the remainder of the year. Nevertheless, because the cash revenues and expenses of the Partnership will depend on future facts and circumstances relating to the Partnership's properties, as well as market and other conditions beyond the control of the Partnership, a possibility exists that cash flow deficiencies may occur. There are currently no material commitments for capital expenditures other than as described below. The Bonds are due and payable on November 30, 1997 in the aggregate principal amount of $16,452,000 and bear interest, payable semi-annually, at 9.5% (increasing to 10% on November 30, 1996). At or prior to November 30, 1997, it is expected that the Partnership will seek to refinance the Bonds and/or sell one or more of its properties to repay the Bonds. No assurance can be given as to whether the Partnership will be able to refinance the Bonds or sell its properties or if the Partnership is able to do so, that the terms of any such refinancing and/or sale would be attractive to the Partnership. Net cash provided by operating activities of $727,518 for the nine months ended September 30, 1996 is comprised of (i) a net loss of $161,393, (ii) non-cash adjustments of $479,898 for depreciation and amortization expense and (iii) a net change in operating assets and liabilities of $409,013. -9- Net cash provided by operating activities of $658,201 for the nine months ended September 30, 1995 is comprised of (i) a net loss of $118,398 (ii) non-cash adjustments of $492,344 for depreciation and amortization expense and (iii) a net change in operating assets and liabilities of $284,255. Net cash used in investing activities of $88,353 for the nine months ended September 30, 1996 is comprised of capital expenditures for property improvements. Net cash used in investing activities of $49,398 for the nine months ended September 30, 1995 is comprised of capital expenditures for property improvements. Net cash used in financing activities of $146,328 for the nine months ended September 30, 1996 is comprised of cash distributions to partners. Net cash used in financing activities of $149,825 for the nine months ended September 30, 1995 is comprised of cash distributions to partners. PART II - OTHER INFORMATION Item 6. Reports on Form 8-K (b) No reports on form 8-K were filed during the quarter covered by this Report. -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. DATE: November 8, 1996 CONCORD MILESTONE PLUS, L.P. -------------------- ---------------------------- (Registrant) BY: CM PLUS CORPORATION ---------------------------- General Partner By: /s/ Robert Mandor ---------------------------- Robert Mandor Director and Vice President By: /s/ Joan LeVine ---------------------------- Joan LeVine Secretary and Treasurer EX-27 2 FINANCIAL DATA SCHEDULE
5 1 9-MOS DEC-31-1996 JAN-01-1996 SEP-30-1996 711,709 0 183,739 0 0 0 26,337,863 4,684,122 22,665,550 0 16,465,991 0 0 0 5,336,415 22,665,550 0 2,275,433 0 1,264,621 0 0 1,172,205 (161,393) 0 0 0 0 0 (161,393) (10.62) 0 Loss per weighted average limited Partnership 100 class A interests outstanding.
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