-----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, UEmNyBYe7FGfGTNSTdcqJWfJIHLo6C7kFD8fedwCdw2NyOj5eATgggB1SZWK4/kh yY1YXYXSUlnCGGro3UrboA== 0000912057-96-025624.txt : 19961113 0000912057-96-025624.hdr.sgml : 19961113 ACCESSION NUMBER: 0000912057-96-025624 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961112 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: 96658988 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 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, 1996 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 PARTNERSHIP INDEX
PAGE ---- PART I. FINANCIAL INFORMATION Item 1. Financial Statements. (a) Condensed Balance Sheets, December 31, 1995 and September 30, 1996 . . . . . . . . . . . . 3 (b) Condensed Statements of Income, three and nine months ended, September 30, 1996 and 1995. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 (c) Condensed Statements of Partners' Capital (Deficit) for the year ended December 31, 1995 and the nine months ended September 30, 1996.. . . . . . . . . . . . . 5 (d) Condensed Statements of Cash Flows, nine months ended September 30, 1996 and 1995. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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
(Unaudited) *December 31 September 30 1995 1996 ---------------------------- Current assets: Cash and cash equivalents . . . . . . . . . . . . . . . . . $ 93,997 $ 23,118 Short-term investments (market value of $1,085,049 in 1995 and $1,174,680 in 1996). . . . . . . . . . . . . . . . . 1,083,120 1,157,238 Interest receivable on trust deed notes receivable. . . . . 10,005 9,380 Current portion of trust deed notes receivable (note B) . . 36,218 36,428 -------------- ------------- Total current assets. . . . . . . . . . . . . . . . . . . . 1,223,340 1,226,164 Trust deed notes receivable, net (note B) . . . . . . . . . 1,432,975 1,410,350 -------------- ------------- $2,656,315 $2,636,514 -------------- ------------- -------------- ------------- LIABILITIES AND PARTNERS' CAPITAL Current Liabilities: Accounts payable and other liabilities . . . . . . . . $ 641 $ 632 Due general partners . . . . . . . . . . . . . . . . . 249,000 256,500 -------------- ------------- Total Current Liabilities. . . . . . . . . 249,641 257,132 Partners' capital: General Partners . . . . . . . . . . . . . . . . . . . (207,958) (207,183) Limited Partners - 41,459 units outstanding in 1996 and 1995 respectively . . . . . . . . . . . . . . . . . . . . . 2,614,632 2,586,565 -------------- ------------- Net partners' capital. . . . . . . . . . . 2,406,674 2,379,382 -------------- ------------- $2,656,315 $2,636,514 -------------- ------------- -------------- -------------
See accompanying notes to financial statements. * Extracted from audited December 31, 1995 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 1996 1995 1996 1995 ---- ---- ---- ---- Revenue: Interest on mortgage loans . . . . . . . . . . . . . . . . . $ 89,341 $155,419 $ 29,570 $ 29,863 Interest on short-term investments . . . . . . . . . . . . . 33,027 47,454 895 12,792 -------- -------- -------- --------- 122,368 202,873 30,465 42,655 Expenses: Servicing related expenses . . . . . . . . . . . . . . . . . 29,791 33,941 5,795 6,710 General and administrative expenses. . . . . . . . . . . . . 15,087 252,473 4,889 4,747 -------- -------- -------- --------- 44,878 286,414 10,684 11,457 -------- -------- -------- --------- NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . $ 77,490 $(83,541) $ 19,781 $ 31,198 -------- -------- -------- --------- -------- -------- -------- --------- Weighted average number of limited partnership units outstanding . . . . . . . . . . . . 41,459 41,459 41,459 41,459 -------- -------- -------- --------- -------- -------- -------- --------- Net income (loss) per limited partnership unit . . . . . . . . . $ 1.87 $ (2.02) $ .48 $ .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, 1995. . . . . . . . . . . $(207,958) $2,614,632 $2,406,674 Net income six months ended September 30, 1996. . 775 76,715 77,490 Distributions . . . . . . . . . . . . . . . . . . (104,782) (104,782) ----------- ------------ ----------- Balance as of September 30, 1996 (unaudited). . . $(207,183) $2,586,565 $2,379,382 ----------- ------------ ----------- ----------- ------------ -----------
5 KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS
Nine Months Ended September 30 ------------------------------ 1996 1995 ---- ---- OPERATING ACTIVITIES: Net Income (loss) . . . . . . . . . . . . . . . . . . . $ 77,490 $(83,541) Changes in operating assets and liabilities: Amortization of net origination fees. . . . . . . . (1,275) (1,281) Decrease in interest and accounts receivable. . . . 625 11,358 Increase in due general partners. . . . . . . . . . 7,500 246,500 Decrease in accounts payable. . . . . . . . . . . . (10) (1,207) --------- -------- NET CASH PROVIDED BY OPERATING ACTIVITIES. . . . 84,330 171,829 INVESTING ACTIVITIES: Decrease in notes receivable. . . . . . . . . . . . . . 23,690 1,476,493 Increase in short-term investments. . . . . . . . . . . (74,118) (1,710,846) FINANCING ACTIVITIES: Distribution and withdrawals. . . . . . . . . . . . . . (104,782) (140,617) --------- -------- Decrease in cash and cash equivalents . . . . . . . . . (70,880) (203,141) Cash and cash equivalents at beginning year . . . . . . 93,997 207,216 --------- -------- CASH AND CASH EQUIVALENTS AT END OF PERIOD . . . . . . . . . . . . . . . . $ 23,117 $ 4,075 --------- -------- --------- --------
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, 1995 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 1995 1996 -------- ---- ---- 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. . . . . . . . . $12,529 $1,538,433 $1,514,743 ------- ------- Less current portion . . . . . . . . . . . . . . 36,218 36,428 Less net deferred loan origination fees. . . . . 5,240 3,965 Less allowance for loss. . . . . . . . . . . . . 64,000 64,000 ---------- ---------- Net concurrent trust deed notes receivable . $1,432,975 $1,410,350 ---------- ---------- ---------- ----------
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, 1996 decreased $80,505 or 39.6% over the same period September 30, 1995. Revenue for the three months ended September 30, 1996 decreased $12,190 or 28.6% for the same period ending Sept. 30, 1995. This decrease was due to a decrease in interest income as a result of distribution of loan payoff to limited partners. Servicing expenses decreased 12.2% and general and administrative expenses decreased $237,386 for the nine months ended September 30, 1996 over the same period ended September 30, 1995. Servicing expenses decreased 13.6% and general and administrative expenses increased 2.9% for the three months ended September 30, 1996 over the same period 1995. 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 $241,500 at June 30, 1995. Net income increased $161,031 for the nine months ended September 30, 1996 over the same period September 30, 1995. Net income decreased $ 11,417 or 36.5% for the three moths ended September 30, 1996 over the same period September 30, 1995. Working capital decreased $4,667 for nine months ended September 30, 1996 because of distributions to limited partners during the period. The Partnership has adequate working capital and cash reserved 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, 1996. 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: November 12, 1996 /s/ JOHN P. SULLIVAN ------------------------------- Keystone Mortgage Company By: John P. Sullivan, President Date: November 12, 1996 /s/ JOHN P. SULLIVAN -------------------------------- John P. Sullivan General Partner Date: November 12, 1996 /s/ CHRISTOPHER E. TURNER -------------------------------- Christopher E. Turner General Partner 11 EX-27 2 EXHIBIT 27
5 9-MOS DEC-31-1996 SEP-30-1996 SEP-30-1996 23,118 1,157,238 1,514,743 64,000 0 1,226,164 0 0 2,636,514 257,132 0 0 0 0 2,379,382 2,636,514 0 122,368 0 0 44,878 0 0 77,490 0 77,490 0 0 0 77,490 0 0
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