-----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, KHthhhkhlkui8yYjLGBlejkjm0I/aOt93WpaygMQRqxHzMJUTMCLzrsAVq3mRmmC eo483KwdMet7VSrIPc3Naw== 0000912057-97-015934.txt : 19970508 0000912057-97-015934.hdr.sgml : 19970508 ACCESSION NUMBER: 0000912057-97-015934 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970507 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: 97597158 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 MARCH 31, 1997 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, 1996 and March 31, 1997 . . . . . . . . . . . . . . . . . . . . . 3 (b) Condensed Statements of Income, three months ended, March 31, 1997 and 1996. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 (c) Condensed Statements of Partners' Capital (Deficit) for the year ended December 31, 1996 and the three months ended March 31, 1997. . . . . . . . . . . . . . . . . . . . . . . 5 (d) Condensed Statements of Cash Flows, three months ended March 31, 1997 and 1996. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 (e) Notes to condensed financial statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 & 8 Item 2. Management's discussion and analysis of financial condition and results of operation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 March 31 1996 1997 ------------------------- Current assets: Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . $ 15,808 $ 4,413 Short-term investments (market value of $984,005 in 1996 and $730,858 in 1997). . . . . . . . . . . . . . . . . . . . . . . . . . 684,005 730,858 Interest receivable on trust deed notes receivable . . . . . . . . . . . 9,321 8,682 Current portion of trust deed notes receivable (note B). . . . . . . . . 39,732 43,620 ------------------------------ Total current assets . . . . . . . . . . . . . . . . . . . . . . . . 748,866 787,573 Trust deed notes receivable, net (note B) 1,397,966 1,384,718 ------------------------------ $2,146,832 $2,172,291 ------------------------------ ------------------------------ LIABILITIES AND PARTNERS' CAPITAL Current Liabilities: Accounts payable and other liabilities . . . . . . . . . . . . . . . . . $ 1,295 $ 624 Due general partners . . . . . . . . . . . . . . . . . . . . . . . . . . 259,000 261,500 ------------------------------ Total Current Liabilities. . . . . . . . . . . . . . . . . . 260,295 262,124 Partners' capital: General Partner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (206,601) (206,365) Limited Partners - 41,459 units outstanding in 1996 and 1997 respectively. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,093,138 2,116,532 ------------------------------ Net partners' capital. . . . . . . . . . . . . . . . . . . . 1,886,537 1,910,167 ------------------------------ $2,146,832 $2,172,291 ------------------------------ ------------------------------
See accompanying notes to financial statements. * Extracted from audited December 31, 1996 financial statements. 3 KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP CONDENSED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended March 31 1997 1996 ------------------ Revenue: Interest on mortgage loans. . . . . . . . . . . . . . $ 27,099 $29,989 Interest on short-term investments. . . . . . . . . . 11,149 19,497 -------------------- 38,248 49,486 Expenses: Servicing related expenses 9,540 13,223 General and administrative expenses 5,078 5,292 -------------------- -------------------- 14,618 18,515 -------------------- NET INCOME . . . . . . . . . . . . . . . . . . . $ 23,630 $30,971 -------------------- -------------------- Weighted average number of limited partnership units outstanding . . . . . . . . 41,459 41,459 -------------------- -------------------- Net income per limited partnership unit. . . . . . . . . $ .57 $ .75 -------------------- -------------------- 4 KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF PARTNER'S CAPITAL (DEFICIT)
General Limited Partners Partners Total -------- -------- ----- Balance at December 31, 1996. . . . . . . . . . . $(206,601) $2,093,138 $1,886,537 Net income three months ended March 31, 1997. . . 236 23,394 23,630 -------------------------------------------------- Balance as of March 31, 1997 (unaudited). . . . . $(206,365) $2,116,532 $1,910,167 ---------- ---------- ---------- ---------- ---------- ----------
5 KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS
Three Months Ended March 31 --------------------------- 1997 1996 ---- ---- OPERATING ACTIVITIES: Net Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 23,630 $ 30,971 Changes in operating assets and liabilities: Amortization of net origination fees. . . . . . . . . . . . . . . . . . (425) (425) Decrease in interest and accounts receivable. . . . . . . . . . . . . . 639 252 Increase in due general partners. . . . . . . . . . . . . . . . . . . . 2,500 2,500 Decrease in accounts payable. . . . . . . . . . . . . . . . . . . . . . (671) (3) ---------- ---------- NET CASH PROVIDED BY OPERATING ACTIVITIES . . . . . . . . . . . . 25,673 33,295 INVESTING ACTIVITIES: Decrease in notes receivable. . . . . . . . . . . . . . . . . . . . . . . . 9,785 7,391 Increase in short-term investments. . . . . . . . . . . . . . . . . . . . . (46,853) (128,747) ------------------------------ NET CASH PROVIDED BY OPERATING ACTIVITIES. . . . . . . . . . . . . . . . . . . . . . . . . . (37,068) (121,356) ------------------------------ Decrease in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . (11,395) (88,061) Cash and cash equivalents at beginning year . . . . . . . . . . . . . . . . . 15,808 93,997 ------------------------------ CASH AND CASH EQUIVALENTS AT END OF PERIOD. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,413 $ 5,936 ------------------------------ ------------------------------
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, 1996 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 March 31 interest 1996 1997 --------- ---- ---- 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 $1,505,238 $1,495,453 -------- -------- Less current portion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,732 43,620 Less net deferred loan origination fees . . . . . . . . . . . . . . . . . . . . . . . 3,540 3,115 Less allowance for loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,000 64,000 ---------- ---------- Net concurrent trust deed notes receivable. . . . . . . . . . . . . . . . . . . . . $1,397,966 $1,384,718 -------------------------- --------------------------
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 Total revenue decreased $11,238 or 22.7% for the three months ended March 31, 1997 over the same period March 31, 1996. This decrease was due to a decrease in interest income as a result of loan payoffs and distribution of capital to Limited partners, less required reserves. Total expenses decreased 21.1% for the three months ended March 31, 1997 over the same period March 31, 1996. Servicing related expenses decreased 27.9% and G & A expenses decreased 4.1% for the three months ended March 31, 1997 over the same period March 31, 1996. Net income decreased 21.1 % for the three months ended March 31, 1997 over the same period March 31, 1996. Net income per limited partnership unit decreased 24.0% for the three months ended March 31, 1997 over the same 1996 period. Working capital increased $36,878 for three months ended March 31, 1997. The Partnership has adequate working capital and cash reserves to carry on its business. 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 March 31, 1997. 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 /s/ John P. Sullivan Date: May 7, 1997 ------------------------------- Keystone Mortgage Company By: John P. Sullivan, President /s/ John P. Sullivan Date: May 7, 1997 ------------------------------- John P. Sullivan General Partner /s/ Christopher E. Turner Date: May 7, 1997 ------------------------------- Christopher E. Turner General Partner 11 EX-27 2 EXHIBIT-27
5 3-MOS DEC-31-1997 MAR-31-1997 4,413 730,858 1,437,020 0 0 787,573 0 0 2,172,291 262,124 0 0 0 0 1,910,167 2,172,291 0 38,248 0 0 14,618 0 0 0 0 0 0 0 0 23,630 0 0
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