-----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, Bj3Y1tUaCJB0HX3+RRN+W7jkKGFFWJxquaZOJkfVh4+7MhlFOazjBEJAlXKmGlEP BF+3zCj1soUW9GA1z42I7w== 0000912057-97-026353.txt : 19970808 0000912057-97-026353.hdr.sgml : 19970808 ACCESSION NUMBER: 0000912057-97-026353 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970807 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: 97652905 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 June 30, 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 June 30, 1997..... 3 (b) Condensed Statements of Income, three and six months ended, June 30, 1996 and 1997............................................ 4 (c) Condensed Statements of Partners' Capital (Deficit) for the year ended December 31, 1996 and the six months ended June 30, 1997.... 5 (d) Condensed Statements of Cash Flows, six months ended June 30, 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 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
(UNAUDITED) *DECEMBER 31 JUNE 30 1996 1997 ------------- ------------ Current assets: Cash and cash equivalents.......................................................... $ 15,808 $ 13,699 Short-term investments (market value of $684,005 in 1996 and $883,032 in 1997)..... 684,005 883,032 Interest receivable on trust deed notes receivable................................. 9,321 Current portion of trust deed notes receivable (note B)............................ 39,732 44,920 ------------- ----------- Total current assets........................................................... 748,866 941,651 Trust deed notes receivable, net (note B)............................................ 1,397,966 1,372,807 ------------- ----------- $ 2,146,832 $ 2,314,458 ------------- ----------- ------------- -----------
LIABILITIES AND PARTNERS' CAPITAL Current Liabilities: Accounts payable and other liabilities............................ $ 1,295 $ Due general partners.............................................. 259,000 264,000 ----------- ---------- Total Current Liabilities..................................... 260,295 264,000 Partners' capital: General Partners.................................................. (206,601) 439 Limited Partners--41,459 units outstanding in 1996 and 1997 respectively.................................................... 2,093,138 2,050,019 ----------- ---------- Net partners' capital......................................... 1,886,537 2,050,458 ----------- ---------- $2,146,832 $2,314,458 ----------- ---------- ----------- ----------
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 SIX MONTHS ENDED JUNE 30 JUNE 30 -------------------- -------------------- 1996 1997 1996 1997 --------- --------- --------- --------- Revenue: Interest on mortgage loans.......................................... $ 29,782 $ 28,862 $ 59,771 $ 55,961 Interest on short-term investments.................................. 12,635 9,604 32,132 20,753 --------- --------- --------- --------- 42,417 38,466 91,903 76,714 Expenses: Servicing related expenses.......................................... 10,773 11,902 23,996 21,442 General and administrative expenses................................. 4,906 6,265 10,198 11,343 --------- --------- --------- --------- 15,679 18,167 34,194 32,785 NET INCOME (LOSS)............................................... $ 26,738 $ 20,299 $ 57,709 $ 43,929 --------- --------- --------- --------- --------- --------- --------- --------- Weighted average number of limited partnership units outstanding...... 41,454 41,454 41,454 41,454 --------- --------- --------- --------- --------- --------- --------- --------- Net income per limited partnership unit............................... $ .65 $ .49 $ 1.39 $ 1.06 --------- --------- --------- --------- --------- --------- --------- ---------
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, 1996............................................ $( 206,601) $ 2,093,138 $ 1,886,537 Genral Partners Contribution............................................ 206,601 206,601 Net income six months ended June 30, 1997............................... 439 43,490 43,929 Less Distribution....................................................... (86,609) (86,609) ----------- ------------ ------------ Balance as of June 30, 1997 (unaudited)................................. $ 439 $ 2,050,019 $ 2,050,458 ----------- ------------ ------------ ----------- ------------ ------------
5 KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30 ---------------------- 1997 1996 ---------- ---------- OPERATING ACTIVITIES: Net Income.............................................................................. $ 43,929 $ 57,709 Changes in operating assets and liabilities: Amortization of net origination fees.................................................. (850) (850) Decrease in interest receivable....................................................... 9,321 254 Decrease in accounts payable.......................................................... (1,295) (6) Increase in due general partners...................................................... 5,000 5,000 ---------- ---------- NET CASH PROVIDED BY OPERATING ACTIVITIES........................................... 56,105 62,107 INVESTING ACTIVITIES: Decrease in notes receivable............................................................ 20,821 15,619 Increase in short-term investments...................................................... (199,027) (49,492) FINANCING ACTIVITIES: General Partners contributions.......................................................... 206,601 Distribution and withdrawals............................................................ (86,609) (104,782) ---------- ---------- Decrease in cash and cash equivalents................................................... (2,109) (76,548) Cash and cash equivalents at beginning year............................................. 15,808 93,997 ---------- ---------- CASH AND CASH EQUIVALENTS AT END OF PERIOD.......................................... $ 13,699 $ 17,449 ---------- ---------- ---------- ----------
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, 1996 filed by the Company under the Securities Exchange Act of 1934. 7 KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED) (B) Trust Deed Notes Receivable
MONTHLY PAYMENT, INCLUDING DECEMBER 31 JUNE 30 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.............................................. $ 12,039 $1,505,238 $ 1,484,417 --------- --------- Less current portion....................................................... 39,732 44,920 Less net deferred loan origination fees.................................... 3,540 2,690 Less allowance for loss.................................................... 64,000 64,000 ------------ ------------ Net concurrent trust deed notes receivable............................. $1,397,966 $ 1,372,807 ------------ ------------ ------------ ------------
8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Revenue for the six months ended June 30, 1997 decreased $13,780 or 23.8% over the same period June 30, 1996. Revenue for the three months ended June 30, 1997 decreased $6,439 or 24.1% for the same period ending June 30, 1996. This decrease was due to a decrease in interest income as a result of distribution of loan payoff to limited partners. Servicing expenses decreased 10.6% and general and administrative expenses increased 11.2% for the six months ended June 30, 1997 over the same period ended June 30, 1996. Servicing expenses increased 10.4% and general and administrative expenses increased 27.7% for the three months ended June 30, 1997 over the same period 1996. Net income decreased 23.8% for the six months ended June 30, 1997 over the same period June 30, 1996. Net income decreased 24.8% for the three months ended June 30, 1997 over the same period June 30, 1996. Working capital increased $189,080 for six months ended June 30, 1997. 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, 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 Date: , 1997 /s/ JOHN P. SULLIVAN -------------------------------- KEYSTONE MORTGAGE COMPANY By: John P. Sullivan, President Date: , 1997 /s/ JOHN P. SULLIVAN -------------------------------- John P. Sullivan GENERAL PARTNER Date: , 1997 /s/ CHRISTOPHER E. TURNER -------------------------------- Christopher E. Turner GENERAL PARTNER 11 EX-27 2 FINANCIAL DATA SCHEDULE (FDS)
5 6-MOS DEC-31-1996 JUN-30-1997 13,699 883,032 1,417,727 0 0 941,651 0 0 2,314,458 264,000 0 0 0 0 2,050,458 2,314,458 0 76,714 0 0 32,785 0 0 0 0 43,929 0 0 0 43,929 0 0
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