-----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, UVGpxwgTnrY5uXU9OOGztPm+ZvgHqixdhJYljwrk85v7ykwT7gVtviFWIu7UdyIa nBXk0V7LlXdLTDW9oGVfwg== 0000912057-95-009841.txt : 19951119 0000912057-95-009841.hdr.sgml : 19951119 ACCESSION NUMBER: 0000912057-95-009841 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 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: 95591193 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, 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 0-15537 --------------------------------------- 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 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 II A CALIFORNIA LIMITED PARTENERSHIP 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 II, A CALIFORNIA LIMITED PARTNERSHIP BALANCE SHEETS ASSETS
DECEMBER 31 SEPTEMBER 30 1994 1995 ------------------------- ------------------------- CURRENT ASSETS Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . $ 207,216 $ 4,075 Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . 1,003,965 2,714,812 Interest receivable on trust deed notes receivable . . . . . . . . . . . 21,408 10,050 Current portion of trust deed notes receivable (note B). . . . . . . . . 1,483,373 36,220 ---------- ---------- TOTAL CURRENT ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . 2,715,962 2,765,157 Trust deed notes receivable, net (note B). . . . . . . . . . . . . . . . . 1,467,525 1,439,465 --------------------------- $4,183,487 $4,204,622 --------------------------- --------------------------- LIABILITIES AND PARTNERS' CAPITAL CURRENT LIABILITIES Due general partners . . . . . . . . . . . . . . . . . . . . . . . . . . $ 246,500 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,852 645 --------------------------- TOTAL CURRENT LIABILITIES . . . . . . . . . . . . . . . . . . . . . . 1,852 247,145 PARTNERS' CAPITAL General Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . (207,816) (208,651) Limited partners - 41,454 units outstanding 1994 and 1995, respectively . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,389,451 4,166,128 --------------------------- NET PARTNERS' CAPITAL. . . . . . . . . . . . . . . . . . . . . . . 4,181,635 3,957,477 --------------------------- $4,183,487 $4,204,622 --------------------------- ---------------------------
See accompanying notes to financial statements. 3 KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP CONDENSED STATEMENTS OF INCOME (UNAUDITED)
Nine Months Ended Three Months Ended September 30 September 30 --------------------------------------- 1994 1995 1994 1995 ----- ----- ----- ---- Revenue: Interest on mortgage loans. . . . . . . . . . . . . . . . . $317,705 $155,419 $78,919 $29,863 Interest on short-term investments. . . . . . . . . . . . . 21,810 47,454 5,354 12,792 -------- ------- ------- ------- 339,515 202,873 84,273 42,655 Expenses: Servicing related expenses. . . . . . . . . . . . . . . . . 43,292 33,941 11,072 6,710 General and administrative expenses . . . . . . . . . . . . 3,033 252,473 741 4,747 -------- ------- ------- ------- 46,325 286,414 11,813 11,457 -------- ------- ------- ------- NET INCOME. . . . . . . . . . . . . . . . . . . . . . . $293,190 ($ 83,541) $72,460 $31,198 -------- -------- ------- ------- -------- -------- ------- ------- Weighted average number of limited partnership units outstanding. . . . . . . . . . . . . . . . . . . . . . 41,469 41,459 41,469 41,454 -------- ------- ------- ------- -------- ------- ------- ------- Net income (loss) per limited partnership unit . . . . . . . . $7.07 $ (2.02) $ 1.75 $ .75 -------- --------- ------- ------- -------- --------- ------- -------
See notes to financial statements 4 KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF PARTNER'S CAPITAL (DEFICIT)
GENERAL LIMITED PARTNERS PARTNERS TOTAL -------- -------- ----- Balance at December 31, 1994 . . . . . . . . . . . . . . . . ($207,816) $4,389,451 $4,181,635 Net income nine months ended September 30, 1995. . . . . . . (835) (82,706) (83,541) Distributions. . . . . . . . . . . . . . . . . . . . . . . . (140,617) (140,617) --------- ---------- ---------- Balance as of September 30, 1995 (unaudited) . . . . . . . . . ($208,651) $4,166,128 $3,957,477 --------- ---------- ---------- --------- ---------- ----------
See notes to financial statements. 5 KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30 ------------------------------ 1995 1994 ---- ---- OPERATING ACTIVITIES: Net Income (loss) . . . . . . . . . . . . . . . . . . . . . . $ (83,541) $ 293,190 Changes in operating assets and liabilities: Amortization of net origination fees . . . . . . . . . . . (1,281) (1,800) Decrease in interest and accounts receivable . . . . . . . 11,358 16,998 Increase in due general partners . . . . . . . . . . . . . 246,500 Decrease in accounts payable . . . . . . . . . . . . . . . (1,207) (1,714) Decrease in other assets . . . . . . . . . . . . . . . . . 972 ----------- ---------- NET CASH PROVIDED BY OPERATING ACTIVITIES. . . . . . . 171,829 307,646 INVESTING ACTIVITIES: Decrease in notes receivable. . . . . . . . . . . . . . . . . 1,476,493 2,305,025 Increase in short-term investments. . . . . . . . . . . . . . (1,710,846) FINANCING ACTIVITIES: Distributions and withdrawals . . . . . . . . . . . . . . . . (140,617) (731,501) ----------- ---------- Increase (decrease) in cash and cash equivalents. . . . . . . (203,141) 1,881,170 Cash and cash equivalents at beginning of year. . . . . . . . 207,216 1,069,015 ----------- ---------- CASH AND CASH EQUIVALENTS AT END OF PERIOD . . . . . . $ 4,075 $2,950,185 ----------- ---------- ----------- ----------
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, INCLUDING DECEMBER 31 SEPTEMBER 30 INTEREST 1994 1995 --------- ---- ---- First trust deed on an 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, 199 . . . . . . . . $16,797 1,572,584 1,545,345 -------- ---------- ---------- -------- 3,021,838 1,545,345 Less current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,483,373 36,220 Less allowance for loss. . . . . . . . . . . . . . . . . . . . . . . . . . 6,940 5,660 Less net deferred loan origination fees. . . . . . . . . . . . . . . . . . 64,000 64,000 ---------- ---------- Net concurrent trust deed notes receivable. . . . . . . . . . . . . . $1,467,525 $1,439,465 ---------- ---------- ---------- ----------
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 nine months ended September 30, 1995 decreased $136,642 or 40.2% over the same period September 30, 1994. Revenue for the three months ended September 30, 1995 decreased $41,618 or 49.4% for the same period ending September 30, 1994. This decrease was due to a decrease in interest income as a result of distribution of loan payoff to Limited Partners. Servicing related expenses decreased 21.5% and general and administrative expenses increased $249,440 for the nine months ended September 30, 1995 over the same period ended September 30, 1994. Servicing related expenses decreased 39.4% and general and administrative expesnes increased $4,006 for the three months ended September 30, 1995 over the same period 1994. Net income decreased $376,731, or 128.4% for the nine months ended September 30, 1995 over the same period September 30, 1994. Net income decreased $41,262 or 56.9% for the three months ended September 30, 1995 over the same period September 30, 1994. Working capital decreased $196,098 for nine months ended September 30, 1995 because of distributions 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 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 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 FINANCIAL DATA SCHEDULE
5 9-MOS DEC-31-1995 SEP-30-1995 4,075 2,714,812 1,475,685 64,000 0 2,765,157 12,760 12,760 4,204,622 247,145 0 0 0 0 3,957,477 4,204,622 0 202,873 0 286,414 0 0 0 (83,541) 0 (83,541) 0 0 0 (83,541) (2.02) (2.02)
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