-----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, c2YYzFBlo3ahwV2Xp/1v6QBBOjh9nYilYy0Y1JlUCEufvDDfdjMKE2+3xdQ8eqyH MJAW+pcgEkpLHDJq/5Akbg== 0000912057-95-005551.txt : 19950725 0000912057-95-005551.hdr.sgml : 19950725 ACCESSION NUMBER: 0000912057-95-005551 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 II CENTRAL INDEX KEY: 0000812084 STANDARD INDUSTRIAL CLASSIFICATION: ASSET-BACKED SECURITIES [6189] IRS NUMBER: 954061580 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-15537 FILM NUMBER: 95555528 BUSINESS ADDRESS: STREET 1: 11340 W OLYMPIC BLVD 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, 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 0-15537 ------------------------ KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP (Exact name of registrant as specified in its charter.) CALIFORNIA 95-4061580 (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 ------------------------ Indicate 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 II, A CALIFORNIA LIMITED PARTNERSHIP 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, three and six months ended, June 30, 1995 and 1994............. 4 (c) Condensed Statements of Partners' Capital (Deficit) for the year ended December 31, 1994 and for 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 2 KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP BALANCE SHEETS ASSETS
DECEMBER 31 JUNE 30 1994 1995 ---------- ----------- CURRENT ASSETS Cash and cash equivalents............. $ 207,216 $ 10,755 Short-term investments................ 1,003,965 2,667,283 Interest receivable on trust deed notes receivable..................... 21,408 9,340 Current portion of trust deed notes receivable (note B).................. 1,483,373 35,760 ---------- ----------- TOTAL CURRENT ASSETS................ 2,715,962 2,723,138 Trust deed notes receivable, net (note B)..................................... 1,467,525 1,447,789 ---------- ----------- $4,183,487 $ 4,170,927 ---------- ----------- ---------- ----------- LIABILITIES AND PARTNERS' CAPITAL CURRENT LIABILITIES Due General Partners.................. $ 244,000 Accounts Payable...................... $ 1,852 648 ---------- ----------- TOTAL CURRENT LIABILITIES........... 1,852 244,648 PARTNERS' CAPITAL General Partners...................... (207,816) (208,963) Limited Partners -- 41,454 units outstanding 1994 and 1995, respectively......................... 4,389,451 4,135,242 ---------- ----------- NET PARTNERS' CAPITAL............... 4,181,635 3,926,279 ---------- ----------- $4,183,487 $ 4,170,927 ---------- ----------- ---------- -----------
See accompanying notes to financial statements. 3 KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP CONDENSED STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 ----------------- ------------------- 1995 1994 1995 1994 ------- -------- --------- -------- Revenue: Interest on mortgage loans............ $59,490 $108,837 $ 125,556 $238,786 Interest on short-term investments.... 19,151 7,242 34,662 16,456 ------- -------- --------- -------- 78,641 116,079 160,218 255,242 Expenses: Servicing related expenses............ 13,415 11,798 27,231 32,220 General and administrative expenses... 3,823 758 247,726 2,292 ------- -------- --------- -------- 17,238 12,556 274,957 34,512 ------- -------- --------- -------- NET INCOME.......................... $61,403 $103,523 $(114,739) $220,730 ------- -------- --------- -------- ------- -------- --------- -------- Weighted average number of limited partnership units outstanding.......... 41,454 41,454 41,454 41,454 ------- -------- --------- -------- ------- -------- --------- -------- Net income (loss) per limited partnership unit....................... $ 1.48 $ 2.50 $ (2.77) $ 5.33 ------- -------- --------- -------- ------- -------- --------- --------
See notes to financial statements. 4 KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF PARTNERS' CAPITAL (DEFICIT)
GENERAL LIMITED PARTNERS PARTNERS TOTAL --------- ---------- ---------- Balance at December 31, 1994............ $(207,816) $4,389,451 $4,181,635 Net income (loss) six months ended June 30, 1995............................... (1,147) (113,592) (114,739) Distributions........................... (140,617) (140,617) --------- ---------- ---------- Balance at June 30, 1995 (unaudited).... $(208,963) $4,135,242 $3,926,279 --------- ---------- ---------- --------- ---------- ----------
See notes to financial statements. 5 KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30 ----------------------- 1995 1994 ----------- ---------- OPERATING ACTIVITIES: Net income (loss)..................... $ (114,739) $ 220,730 Changes in operating assets and liabilities: Amortization of net origination fees............................... (854) (1,200) Decrease in interest receivable..... 12,068 13,958 Decrease in accounts payable........ (1,204) (1,628) Increase in due general partners.... 244,000 Decrease in other assets............ 648 ----------- ---------- NET CASH PROVIDED BY OPERATING ACTIVITIES....................... 139,271 232,508 INVESTING ACTIVITIES: Decrease in notes receivable.......... 1,468,203 1,950,710 Increase in short term investments.... (1,663,318) FINANCING ACTIVITIES: Distribution and withdrawals.......... (140,617) (731,501) ----------- ---------- Increase (decrease) in cash and cash equivalents.......................... (196,461) 1,451,717 Cash and cash equivalents at beginning year................................. 207,216 1,069,015 ----------- ---------- CASH AND CASH EQUIVALENTS AT END OF PERIOD........................ $ 10,755 $2,520,732 ----------- ---------- ----------- ----------
See notes to financial statements. 6 KEYSTONE MORTGAGE FUND II, 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 II 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 II, A CALIFORNIA LIMITED PARTNERSHIP NOTES TO FINANCIAL STATEMENTS (CONTINUED) (B) TRUST DEED NOTES RECEIVABLE
MONTHLY PAYMENT, DECEMBER INCLUDING 31 JUNE 30 INTEREST 1994 1995 --------- --------- ------------ First trust deed on industrial building, rate of 10.75%, due October 1, 1995.... $ 16,592 $1,449,254 $ First trust deed on industrial building, interest rate, adjusted every six months at 2.65% plus 11th District monthly weighted average cost of funds, due February 1, 1999................... $ 16,797 1,572,584 1,553,635 --------- --------- ------------ --------- 3,021,838 1,553,635 Less current portion.................... 1,483,373 35,760 Less net deferred origination fees...... 6,940 6,086 Les allowance for loss.................. 64,000 64,000 --------- ------------ Net concurrent trust deed notes receivable........................... $1,467,525 $ 1,447,789 --------- ------------ --------- ------------
8 KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP NOTES TO FINANCIAL STATEMENTS (CONTINUED) ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Revenue for the six months ended June 30, 1995 decreased $95,024 or 37.2% over the same period June 30, 1994. Revenue for the three months ended June 30, 1995 decreased $37,438 or 32.2% for the same period ending June 30, 1994. This decrease was due to a decrease in interest income as a result of distribution of loan payoff to limited partners. Servicing expenses decreased 15.5% and general and administrative expenses increased $245,434 for the six months ended June 30, 1995 over the same period ended June 30, 1994. Servicing expenses increased 13.7% and general and administrative expenses increased $3,065 for the three months ended June 30, 1995 over the same period 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 $244,000 at June 30, 1995. Net income decreased $335,469 for the six months ended June 30, 1995 over the same period June 30, 1994. Net income decreased $42,120 or 40.6% for the three months ended June 30, 1995 over the same period June 30, 1994. Working capital decreased $235,620 for six months ended June 30, 1995 because of distributions to limited partners during the period. 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. Revenues and net income continue to decrease as the Partnership liquidates its assets. 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 II 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 FDS EXHIBIT 27
5 6-MOS DEC-31-1995 JUN-30-1995 10,755 2,667,283 1,562,975 64,000 0 45,100 12,760 12,760 4,170,927 244,648 0 0 0 0 3,926,279 4,170,927 0 160,218 0 274,957 0 0 0 (114,739) 0 (114,739) 0 0 0 (114,739) (2.77) (2.77)
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