-----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, E2ZUWWkNxqkPYpuIuU9iMko20+KlcM+bkkl+ZOfQ2yW/PwujKdXFbIk5yup1O314 N6WXlIzWbity+dKGvA8MDQ== 0001047469-97-004310.txt : 19971113 0001047469-97-004310.hdr.sgml : 19971113 ACCESSION NUMBER: 0001047469-97-004310 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971113 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: SEC FILE NUMBER: 000-15537 FILM NUMBER: 97715838 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, 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 September 30, 1997 . . . . . . . . . . . . . . . . . . . . . . 3 (b) Condensed Statements of Income, three and nine months ended, September 30, 1997 and 1996 . . . . . . . . . . . . . . . . . . 4 (c) Condensed Statements of Partners' Capital (Deficit) for the year ended December 31, 1996 and the nine months ended September 30, 1997 . . . . . . . . . . . . . . . . . . . . . . 5 (d) Condensed Statements of Cash Flows, nine months ended September 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 & 11 2 KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP BALANCE SHEETS ASSETS
(Unaudited) *December 31 September 30 1996 1997 ------------ ------------ Current assets: Cash and cash equivalents . . . . . . . . . . . . . . . . $ 15,808 $ 8,958 Short-term investments (market value of $684,005 in 1996 and $917,415 in 1997) . . . . . . . . . . . . . . . . . 684,005 917,415 Interest receivable on trust deed notes receivable . . . 9,321 9,202 Current portion of trust deed notes receivable (note B) . 39,732 40,133 ------------ ------------ Total current assets. . . . . . . . . . . . . . . . . . 748,866 975,708 Trust deed notes receivable, net (note B) . . . . . . . . . 1,397,966 1,372,411 ------------ ------------ $2,146,832 $2,348,119 ------------ ------------ ------------ ------------ LIABILITIES AND PARTNERS' CAPITAL Current Liabilities: Accounts payable and other liabilities. . . . . . . . . . $ 1,295 $ 616 Due general partners. . . . . . . . . . . . . . . . . . . 259,000 266,500 ------------ ------------ Total Current Liabilities . . . . . . . . . . . . . . . 260,295 267,116 Partners' capital: General Partners. . . . . . . . . . . . . . . . . . . . . (206,601) 745 Limited Partners - 41,459 units outstanding in 1996 and 1997 respectively . . . . . . . . . . . . . . . . . . . 2,093,138 2,080,258 ------------ ------------ Net partners' capital . . . . . . . . . . . . . . . . 1,886,537 2,081,003 ------------ ------------ $2,146,832 $2,348,119 ------------ ------------ ------------ ------------
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)
Nine Months Ended Three Months Ended September 30 September 30 1997 1996 1997 1996 -------- -------- -------- --------- Revenue: Interest on mortgage loans . . . . . . . . $ 84,057 $ 89,341 $ 28,096 $ 29,570 Interest on short-term investments . . . . 32,294 33,027 11,541 895 -------- -------- -------- --------- 116,351 122,368 39,637 30,465 Expenses: Servicing related expenses . . . . . . . . 25,810 29,791 4,368 5,795 General and administrative expenses. . . . 16,067 15,087 4,724 4,889 -------- -------- -------- --------- 41,877 44,878 9,092 10,684 -------- -------- -------- --------- NET INCOME . . . . . . . . . . . . . . . $ 74,474 $ 77,490 $ 30,545 $ 19,781 -------- -------- -------- --------- -------- -------- -------- --------- Weighted average number of limited partnership units outstanding. . . . . . . 41,459 41,459 41,459 41,459 -------- -------- -------- --------- -------- -------- -------- --------- Net income per limited partnership unit. . . $ 1.80 $ 1.87 $ .74 $ .48 -------- -------- -------- --------- -------- -------- -------- ---------
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 General Partners Contribution. . . . . . . . . . 206,601 206,601 Net income nine months ended September 30, 1997. 745 73,729 74,474 Less distribution. . . . . . . . . . . . . . . . (86,609) (86,609) ---------- ---------- ---------- Balance as of September 30, 1997 (unaudited) . . $ 745 $2,080,258 $2,081,003 ---------- ---------- ---------- ---------- ---------- ----------
5 KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS
Nine Months Ended September 30 ------------------------------ 1997 1996 ---- ---- OPERATING ACTIVITIES: Net Income. . . . . . . . . . . . . . . . . . . . . . . $ 74,474 $ 77,490 Changes in operating assets and liabilities: Amortization of net origination fees . . . . . . . . (1,275) (1,275) Decrease in interest and accounts receivable . . . . 119 625 Increase in due general partners . . . . . . . . . . 7,500 7,500 Decrease in accounts payable . . . . . . . . . . . . (679) (10) ---------- ---------- NET CASH PROVIDED BY OPERATING ACTIVITIES. . . . 80,139 84,330 INVESTING ACTIVITIES: Decrease in notes receivable . . . . . . . . . . . . . 26,429 23,690 Increase in short-term investments . . . . . . . . . . (233,410) (74,118) FINANCING ACTIVITIES: General Partners contributions . . . . . . . . . . . . . 206,601 Distribution and withdrawals . . . . . . . . . . . . . . (86,609) (104,782) ---------- ---------- Decrease in cash and cash equivalents. . . . . . . . . (6,850) (70,880) Cash and cash equivalents at beginning year. . . . . . 15,808 93,997 ---------- ---------- CASH AND CASH EQUIVALENTS AT END OF PERIOD . . . . . . . . . . . . . . . . . . $ 8,958 $ 23,117 ---------- ---------- ---------- ----------
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 FINANCIAL STATEMENTS (CONTINUED) (B) TRUST DEED NOTES RECEIVABLE
Monthly Payment, including December 31 September 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 $1,478,809 ------- ------- Less current portion. . . . . . . . . . . . . . . 39,732 40,133 Less net deferred loan origination fees . . . . . 3,540 2,265 Less allowance for loss . . . . . . . . . . . . . 64,000 64,000 ---------- ---------- Net noncurrent trust deed notes receivable. . $1,397,966 $1,372,411 ---------- ---------- ---------- ----------
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, 1997 decreased $5,284 or 5.9% over the same period September 30, 1996. Revenue for the three months ended September 30, 1997 decreased $1,474 or 4.9% for the same period ending Sept. 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 15.4% and general and administrative expenses increased 6.5% for the nine months ended September 30, 1997 over the same period ended September 30, 1996. Servicing expenses decreased 24.9% and general and administrative expenses increased 3.4% for the three months ended September 30, 1997 over the same period 1996. Net income decreased $3,016 or 3.9% for the nine months ended September 30, 1997 over the same period September 30, 1996. Net income increased $10,764 or 54.4% for the three moths ended September 30, 1997 over the same period September 30, 1996. Working capital increased $220,021 for nine months ended September 30, 1997. 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, 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: November 13, 1997 /S/John P. Sullivan --------------------------------- Keystone Mortgage Company By: John P. Sullivan, President Date: November 13, 1997 /S/John P. Sullivan --------------------------------- John P. Sullivan General Partner Date: November 13, 1997 /S/Christopher E. Turner --------------------------------- Christopher E. Turner General Partner 11 EX-27 2 FINANCIAL DATA SCHEDULE
5 9-MOS DEC-31-1996 SEP-30-1997 8,958 917,415 9,202 0 0 975,708 0 0 2,348,119 267,116 0 0 0 0 2,081,003 2,348,119 0 116,391 0 19,781 0 0 0 0 0 0 0 0 0 74,474 0 0
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