-----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, Q+hhUKfKGRMpVw2bkABUtVsTVoyNfgqhwVu4l+S86fAXd6CBtPy43QDWFmkx3SSf l9ipGoY3ZvdRBTOrht/hPg== 0001047469-98-020323.txt : 19980518 0001047469-98-020323.hdr.sgml : 19980518 ACCESSION NUMBER: 0001047469-98-020323 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980515 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: 98621799 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, 1998 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 PART I. FINANCIAL INFORMATION
PAGE ---- Item 1. Financial Statements. (a) Condensed Balance Sheets, December 31, 1997 and March 31, 1998. . . . . . . . . . . . . . . . . . . . . 3 (b) Condensed Statements of Income, three months ended, March 31, 1998 and 1997. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 (c) Condensed Statements of Partners' Capital (Deficit) for the year ended December 31, 1997 and the three months ended March 31, 1998 . . . . . . . . . . . . . . . . . . . . . . 5 (d) Condensed Statements of Cash Flows, three months ended March 31, 1998 and 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 March 31 1997 1998 ------------------------- Current assets: Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . $ 12,484 $ 4,262 Short-term investments (market value of $392,695 in 1997 and $684,00 in 1996) . . . . . . . . . . . . . . . . . . . . . . 392,695 420,274 Interest receivable on trust deed notes receivable. . . . . . . . . 9,162 9,244 Current portion of trust deed notes receivable (note 4) . . . . . . 35,727 1,396,483 ---------- ---------- Total current assets. . . . . . . . . . . . . . . . . . . . . . 450,068 1,830,263 Trust deed notes receivable, net (note 4). . . . . . . . . . . . . . . 1,368,718 - 0 - ---------- ---------- $1,818,786 $1,830,263 ---------- ---------- ---------- ---------- LIABILITIES AND PARTNERS' CAPITAL Current Liabilities: Accounts payable and other liabilities. . . . . . . . . . . . . . . $ 11,120 $ 611 Due general partners (note 3) . . . . . . . . . . . . . . . . . . . 269,000 271,500 ---------- ---------- Total Current Liabilities . . . . . . . . . . . . . . . . . . . 280,120 272,111 Partners' capital: General Partners. . . . . . . . . . . . . . . . . . . . . . . . . . 632 827 Limited Partners - authorized 41,459 units; outstanding 41,459 units . . . . . . . . . . . . . . . . . . . . 1,538,034 1,557,325 ---------- ---------- Total Partners' capital . . . . . . . . . . . . . . . . . . . . 1,538,666 1,558,152 ---------- ---------- $1,818,786 $1,830,263 ---------- ---------- ---------- ----------
See accompanying notes to financial statements. * Extracted from audited December 31, 1997 financial statements. 3 KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP CONDENSED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended March 31 1998 1997 ------------------ Revenue: Interest on mortgage loans. . . . . . . $28,074 $27,099 Interest on short-term investments. . . 4,724 11,149 ------- ------- 32,798 38,248 Expenses: Servicing related expenses. . . . . . . 8,283 9,540 General and administrative expenses . . 5,029 5,078 ------- ------- 13,312 14,618 NET INCOME. . . . . . . . . . . . . . 19,486 $23,630 ------- ------- ------- ------- Weighted average number of limited partnership units outstanding . . 41,459 41,459 ------- ------- ------- ------- Net income per limited partnership unit. . . . . . . . . . . . . $ .47 $ .57 ------- ------- ------- -------
4 KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF PARTNER'S CAPITAL (DEFICIT)
General Limited Partners Partners Total -------- -------- ----- Balance at December 31, 1997 . . . . . . . . . . . . . . . . . . $ 632 $1,538,034 $1,538,666 Net income three months ended March 31, 1998 . . . . . . . . . . 195 19,291 19,486 ------ ---------- ---------- Balance as of March 31, 1998 (unaudited) . . . . . . . . . . . . $ 827 $1,557,325 $1,558,152 ------ ---------- ---------- ------ ---------- ----------
5 KEYSTONE MORTGAGE FUND II, A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS
Three Months Ended March 31 --------------------------- 1998 1997 ---- ---- OPERATING ACTIVITIES Net Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,486 $ 23,630 Changes in operating assets and liabilities: Amortization of net origination fees. . . . . . . . . . . . . (425) (425) Decrease (increase) in interest and accounts receivable . . . (82) 639 Increase in due general partners. . . . . . . . . . . . . . . 2,500 2,500 Increase in accounts payable. . . . . . . . . . . . . . . . . (10,509) (671) -------- -------- NET CASH PROVIDED BY OPERATING ACTIVITIES . . . . . . . . . . . . . . . . . . 10,970 25,673 INVESTING ACTIVITIES: Decrease in notes receivable. . . . . . . . . . . . . . . . . . . 8,387 9,785 Increase in short-term investments. . . . . . . . . . . . . . . . (27,579) (46,853) -------- -------- NET CASH PROVIDED BY OPERATING ACTIVITIES . . . . . . . . . . . . . . . . . . (19,192) (37,068) -------- -------- Decrease in cash and cash equivalents . . . . . . . . . . . . . . (8,222) (11,395) Cash and cash equivalents at beginning year . . . . . . . . . . . 12,484 15,808 -------- -------- CASH AND CASH EQUIVALENTS AT END OF PERIOD . . . . . . . . . . . . . . . . . . . . $ 4,262 $ 4,413 -------- -------- -------- --------
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, 1997 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 1997 1998 -------- ---- ---- 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 . . . $11,426 $1,470,285 $1,461,898 ------- ------- Less current portion . . . . . . . . . . . . . . . . . . . . . . 35,727 1,396,483 Less net deferred loan origination fees. . . . . . . . . . . . . 1,840 1,415 Less allowance for loss. . . . . . . . . . . . . . . . . . . . . 64,000 64,000 -------- -------- Net concurrent trust deed notes receivable. . . . . . . . . $1,368,718 $- 0 - ---------- ------ ---------- ------
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 $5,450 or 14.2% for the three months ended March 31, 1998 over the same period March 31, 1997. 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 8.9% for the three months ended March 31, 1998 over the same period March 31, 1997. Servicing related expenses decreased 13.7% and G & A expenses decreased 0.1% for the three months ended March 31, 1998 over the same period March 31, 1997. Net income decreased 15.5% for the three months ended March 31, 1998 over the same period March 31, 1997. Net income per limited partnership unit decreased 17.5% for the three months ended March 31, 1998 over the same 1997 period. Working capital increased $1,388,204 for the three months ended March 31, 1998. 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, 1998. 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: May 14, 1998 /s/ JOHN P. SULLIVAN ----------------------------------- Keystone Mortgage Company By: John P. Sullivan, President Date: May 14, 1998 /s/ JOHN P. SULLIVAN ----------------------------------- John P. Sullivan General Partner Date: May 14, 1998 /s/ CHRISTOPHER E. TURNER ----------------------------------- Christopher E. Turner General Partner 11 EX-27 2 EXHIBIT 27
5 3-MOS DEC-31-1998 MAR-31-1998 4,262 420,274 1,405,727 0 0 1,830,263 0 0 1,830,263 272,111 0 0 0 0 1,558,152 1,830,263 0 32,798 0 0 0 0 0 0 0 0 0 0 0 19,486 0 0
-----END PRIVACY-ENHANCED MESSAGE-----