-----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, BhldIgknCkeeJJoPN9ouLsNuJPMoN5l7c7NuzZxWnKQKQ90cPfCwmR6NK6gx6Ew+ AMPXdShggi2A7X+NDx42Tw== 0000936392-99-001344.txt : 19991117 0000936392-99-001344.hdr.sgml : 19991117 ACCESSION NUMBER: 0000936392-99-001344 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990930 FILED AS OF DATE: 19991115 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INCOME GROWTH PARTNERS LTD X CENTRAL INDEX KEY: 0000830051 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 330294177 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-18528 FILM NUMBER: 99755396 BUSINESS ADDRESS: STREET 1: 11300 SORRENTO VALLEY RD STE 108 CITY: SAN DIEGO STATE: CA ZIP: 92121 BUSINESS PHONE: 6194572750 MAIL ADDRESS: STREET 1: 11300 SORRENTO VALLEY ROAD STREET 2: SUITE 108 CITY: SAN DIEGO STATE: CA ZIP: 92121 10-Q 1 FORM 10-Q FOR PERIOD 9-30-1999 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1999 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number 0-18528 INCOME GROWTH PARTNERS, LTD. X (Exact name of registrant as specified in its charter) CALIFORNIA 33-0294177 (State or other jurisdiction of (I.R.S. Employer incorporation or organization Identification No.) 11300 Sorrento Valley Road, Suite 108, San Diego, California 92121 (Address of principal executive offices) (Zip Code) (619) 457-2750 (Registrant's telephone number, including area code) (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registration (1) has filed all reports required to be filed by Section 13 or 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 filing requirements for the past 90 days. Yes [X] No [ ] The number of the registrant's Original Limited Partnership Units outstanding as of May 14, 1999 was 18,826.5. The number of the registrant's Class A Units outstanding as of May 14, 1999 was 8,100. 2 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS 3 Income Growth Partners, Ltd. X and Subsidiary (A California Limited Partnership) Consolidated Balance Sheets
September 30, December 31, 1999 1998 ------------ ------------ (unaudited) ASSETS Rental properties: Land $ 7,078,365 $ 7,078,365 Buildings and improvements 21,866,772 21,763,241 ------------ ------------ 28,945,137 28,841,606 Less accumulated depreciation 10,102,741 9,445,320 ------------ ------------ 18,842,396 19,396,286 Cash and cash equivalents 582,341 441,909 Deferred loan fees, net of accumulated amortization of $174,388 and $132,140, respectively 602,795 645,044 Prepaid expenses and other assets 14,753 30,742 ------------ ------------ 1,199,889 1,117,695 ------------ ------------ $ 20,042,285 $ 20,513,981 ============ ============ LIABILITIES AND PARTNERS' CAPITAL Mortgage loans payable $ 19,448,813 $ 19,579,523 Other liabilities: Loan payable to affiliate 60,740 72,640 Accounts payable and accrued liabilities 130,373 170,177 Accrued interest payable 125,699 125,699 Security deposits 217,123 199,177 ------------ ------------ 19,982,748 20,147,216 Commitments Partners' capital 69,537 376,765 Note receivable from general partner (10,000) (10,000) ------------ ------------ $ 20,042,285 $ 20,513,981 ============ ============
The accompanying notes are an integral part of the financial statements. 2 4 Income Growth Partners, Ltd. X and Subsidiary (A California Limited Partnership) Consolidated Statements of Operations - Unaudited
For the Three Months For the Nine Months Ended September 30, Ended September 30, -------------------------- -------------------------- 1999 1998 1999 1998 ----------- ----------- ----------- ----------- Revenues: Rents $ 1,081,445 $ 973,736 $ 3,182,432 $ 2,939,359 Other 52,651 69,053 152,997 148,449 ----------- ----------- ----------- ----------- Total revenues 1,134,096 1,042,789 3,335,429 3,087,808 ----------- ----------- ----------- ----------- Expenses: Operating expenses 476,270 415,188 1,486,322 1,359,974 Depreciation 234,551 227,310 699,668 673,687 Interest 377,478 378,863 1,126,649 1,114,762 ----------- ----------- ----------- ----------- Total expenses 1,088,299 1,021,361 3,312,639 3,148,423 ----------- ----------- ----------- ----------- Net income (loss) $ 45,797 $ 21,428 $ 22,790 $ (60,615) =========== =========== =========== =========== Basic and diluted per limited partnership unit data Net income (loss) per limited partnership unit $ 1.70 $ .80 $ .85 $ (2.25) =========== =========== =========== =========== Weighted average limited partnership units outstanding 26,926 26,926 26,926 26,926 =========== =========== =========== ===========
The accompanying notes are an integral part of the financial statements. 3 5 Income Growth Partners, Ltd. X and Subsidiary (A California Limited Partnership) Consolidated Statements of Cash Flows - Unaudited
For the Nine Months Ended September 30, ------------------------- 1999 1998 --------- --------- Cash flows from operating activities: Net income (loss) $ 22,790 $ (60,615) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 699,668 647,413 (Increase) in: Prepaid expenses and other assets 15,989 (109,350) Deferred loan fees -- 26,274 Increase in: Accounts payable, accrued liabilities and accrued interest payable (39,803) 23,949 Security deposits 17,946 1,655 --------- --------- Net cash provided by operating activities 716,590 529,326 --------- --------- Cash flows from investing activities: Capital expenditures (103,531) (124,028) --------- --------- Net cash used in investing activities (103,531) (124,028) --------- --------- Cash flows from financing activities: Principal payments under mortgage debt (109,627) (136,057) Loan fees and refinancing costs -- (7,016) Principal payments to affiliate (11,900) (22,550) Distributions to investors (351,100) (235,000) --------- --------- Net cash used by financing activities (472,627) (400,623) --------- --------- Net increase (decrease) in cash and cash equivalents 140,432 4,675 --------- --------- Cash and cash equivalents at beginning of period 441,909 282,293 --------- --------- Cash and cash equivalents at end of period $ 582,341 $ 286,968 ========= =========
The accompanying notes are an integral part of the financial statements. 4 6 Income Growth Partners, Ltd. X and Subsidiary (A California Limited Partnership) 1. Basis of Financial Statement Presentation: The accompanying unaudited consolidated financial statements of Income Growth Partners, Ltd. X, a California limited partnership, and subsidiary (the "Partnership") have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Partnership believes that the disclosures made are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with the financial statements and the notes thereto included in the Partnership's latest audited financial statements for the year ended December 31, 1998 filed on Form 10K. The accompanying consolidated financial statements have not been audited by independent public accountants, but include all adjustments (consisting of normal recurring adjustments) which are, in the opinion of the general partners, necessary for a fair presentation of the financial condition, results of operations and cash flows for the periods presented. However, these results are not necessarily indicative of results for a full year. Certain prior period amounts have been reclassified to conform with the current period presentation. 5 7 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS: The following Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the financial statements and notes thereto filed herewith. a. Liquidity and Capital Resources: Since inception, the Partnership's operating and debt service obligations have been financed through the sale of Partnership Units, cash provided by operating activities, and 1995 debt restructuring activities. During the nine months ended September 30, 1999, all of the Partnership's operating and debt service cash requirements have been met through cash generated from operations. The Mission Park mortgage was refinanced in December 1995 at a fixed interest rate of 7.76%. The Shadowridge Meadows mortgage was refinanced in October 1997 at a fixed interest rate of 7.49%. In the event that one or more of the properties is unable to support its debt service and the Partnership is unable to cover operational shortfalls from cash reserves, the Partnership may have to take one or more alternative courses of action. The general partners would then determine, based on their analysis of relevant economic conditions and the status of the properties, a course of action intended to be consistent with the best interests of the Partnership. Possible courses of action might include the sacrifice, sale or refinancing of one or more of the properties, the entry into one or more joint venture partnerships with other entities, or the filing of another bankruptcy petition. Net cash provided by operating activities for the nine months ended September 30, 1999 was approximately $716,590 compared to approximately $529,326 for the same period in 1998. The principal reason for this increase was an increase in income. Net cash used in financing activities for the nine months ended September 30, 1999 was approximately $472,627 compared to approximately $400,623 for the same period in 1998. The principal reason for this increase was an increase in distributions to investors. 6 8 Income Growth Partners, Ltd. X and Subsidiary (A California Limited Partnership) b. Results of Operations: Comparison of three months ended September 30, 1999 to the three months ended September 30, 1998. Rental revenue for the three months ended September 30, 1999 was approximately $1,081,445, an increase of 11% over rents of approximately $973,736 for the comparable period in 1998. The increase is primarily attributable to an increase in monthly tenant rental rates. Operating expenses for the three months ended September 30, 1999 were approximately $476,270, an increase of 15% over operating expenses of approximately $415,188 for the comparable period in 1998. The increase is primarily attributable to an increase in administration expenses. Comparison of nine months ended September 30, 1999 to the nine months ended September 30, 1998. Rental revenue for the nine months ended September 30, 1999 was approximately $3,182,432, an increase of 8% over rents of approximately $2,939,359 for the comparable period in 1998. The increase is primarily attributable to an increase in monthly tenant rental rates. Operating expenses for the nine months ended September 30, 1999 were approximately $1,486,322, an increase of 9% over operating expenses of approximately $1,359,974 for the comparable period in 1998. The increase is primarily attributable to increases in administration expenses, wages, cleaning and supplies for rental turnovers, landscaping and pool maintenance costs. c. Year 2000 The Partnership has completed both the awareness phase and the assessment phase of Year 2000 Compliance. The Partnership's computer software for the Operating System, Investor Relations, Accounting and Property Management are in Year 2000 compliance. The on-site hardware assessment of the Partnership's computer hardware at the Partnership's two properties was completed by late April 1999. The cost of addressing the Partnership's Year 2000 issues should not have a material impact on the Partnership. The Partnership's contingency plans for the Year 2000 problems are finalized and should be implemented by the end of November, 1999. 7 9 Income Growth Partners, Ltd. X and Subsidiary (A California Limited Partnership) PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS: There are no pending legal proceedings which may have a material adverse effect on the Partnership. However, the Partnership is involved in small claims court proceedings against certain present or former tenants of its apartment complexes with regard to landlord-tenant matters, all of which are considered to be in the ordinary course of its business. ITEM 2. CHANGES IN SECURITIES: None ITEM 3. DEFAULTS UPON SENIOR SECURITIES: None ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS: None ITEM 5. OTHER INFORMATION: None ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K: Exhibit 27.1 - Financial Data Schedule 8 10 Income Growth Partners, Ltd. X and Subsidiary (A California Limited Partnership) 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. Date: November 15, 1999 INCOME GROWTH PARTNERS, LTD. X, a California Limited Partnership By: Income Growth Management, Inc. General Partner By: /s/ Timothy C. Maurer --------------------------------------- Timothy C. Maurer Principal Financial Officer AND Duly Authorized Officer of the Registrant 9 EX-27.1 2 EXHIBIT 27.1
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS FILED WITH THE REGISTRANT'S FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 9-MOS DEC-31-1999 JAN-01-1999 SEP-30-1999 582,341 0 0 0 0 1,199,889 28,945,137 10,102,741 20,042,285 533,935 19,448,813 0 0 0 59,537 20,042,285 0 3,335,429 0 1,486,322 699,668 0 1,126,649 22,790 0 22,790 0 0 0 22,790 .85 .85
-----END PRIVACY-ENHANCED MESSAGE-----