-----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, L+zCHvM0kNoUv/ykpEEcYMghqcaasd3/dX2Lo/q39YPUnOzkGdSfnQbB1tzZsObA 4Jt48zhYFwn5UNDB1fS9iw== 0001095811-00-001439.txt : 20000516 0001095811-00-001439.hdr.sgml : 20000516 ACCESSION NUMBER: 0001095811-00-001439 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000515 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: 630892 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 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 March 31, 2000 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from December 31, 1999 to March 31, 2000 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 - --------------------------------------------------------------------------------
March 31 December 31, 2000 1999 ASSETS Rental properties Land $ 7,078,365 $ 7,078,365 Buildings and improvements 21,987,832 21,907,461 ------------ ------------ 29,066,197 28,985,826 Less accumulated depreciation (10,534,395) (10,316,949) ------------ ------------ 18,531,802 18,668,877 Cash and cash equivalents 369,164 434,712 Deferred loan fees, net of accumulated amortization of $201,398 and $188,166, respectively 575,785 589,017 Prepaids and other assets 258,850 125,864 ------------ ------------ $ 19,735,601 $ 19,818,470 ============ ============ LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) Mortgage loans payable $ 19,363,466 $ 19,382,900 Other liabilities Loan payable to affiliates 46,040 48,540 Accounts payable and accrued liabilities 177,987 172,559 Accrued interest payable 125,699 120,684 Security deposits 225,802 217,757 ------------ ------------ 19,938,994 19,942,440 Commitments and contingencies Partners' capital (deficit) (193,393) (113,970) Note receivable from general partner (10,000) (10,000) ------------ ------------ $ 19,735,601 $ 19,818,470 ============ ============
The accompanying notes are an integral part of these financial statements. -2- 4 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 - --------------------------------------------------------------------------------
2000 1999 REVENUES Rents $ 1,137,590 $ 1,033,563 Other 50,896 57,063 ----------- ----------- Total revenues 1,188,486 1,090,627 ----------- ----------- EXPENSES Operating expenses 498,494 535,123 Depreciation and amortization 230,680 231,798 Interest 391,025 379,292 ----------- ----------- Total expenses 1,120,199 1,146,213 ----------- ----------- Net income (loss) $ 68,287 $ (55,586) =========== =========== BASIC AND DILUTED PER LIMITED PARTNERSHIP UNIT DATA Net income (loss) per limited partnership unit $ 2.54 $ (2.06) =========== =========== Weighted average limited partnership units 26,926 26,926 =========== ===========
The accompanying notes are an integral part of these financial statements. -3- 5 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 - --------------------------------------------------------------------------------
2000 1999 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 68,287 $ (55,586) Adjustments to reconcile net loss to net cash provided by operating activities Depreciation and amortization 230,680 231,798 (Increase) in Prepaid expenses and other assets (255,488) 2,076 Deferred loan fees 122,500 -- Increase in Accounts payable, accrued liabilities and accrued interest payable 10,443 72,762 Security deposits 8,045 2,900 --------- --------- Net cash provided by operating activities 184,467 252,951 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (80,371) (39,637) --------- --------- Net cash used in investing activities (80,371) (39,637) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES Principal payments under mortgage debt (19,434) (44,463) Principal payments to affiliate (2,500) -- Distributions to Investors (147,710) (78,842) --------- --------- Net cash used by financing activities (169,644) (123,305) --------- --------- Net increase (decrease) in cash and cash equivalents (65,548) 90,009 --------- --------- Cash and cash equivalents at beginning of period 434,712 441,909 --------- --------- Cash and cash equivalents at end of period $ 369,164 $ 531,918 ========= =========
The accompanying notes are an integral part of these financial statements. -4- 6 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY A CALIFORNIA LIMITED PARTNERSHIP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2000 AND 1999 - -------------------------------------------------------------------------------- 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, 1999 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 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY A CALIFORNIA LIMITED PARTNERSHIP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2000 AND 1999 - -------------------------------------------------------------------------------- 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 three months ended March 31, 2000, 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 three months ended March 31, 2000 was approximately $184,467 compared to approximately $253,951 for the same period in 1999. The principal reason for this decrease can be attributed to cash payments made for impound accounts. Net cash used in investing activities for the three months ended March 31, 2000 was approximately $80,371 compared to approximately $39,637 for the same period in 1999. The principal reason for this increase was an increase in capital expenditures. Net cash used in financing activities for the three months ended March 31, 2000 was approximately $169,644 compared to approximately $123,305 for the same period in 1999. 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 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2000 AND 1999 - -------------------------------------------------------------------------------- b. Results of Operations: COMPARISON OF THREE MONTHS ENDED MARCH 31, 2000 TO THE THREE MONTHS ENDED MARCH 31, 1999. Rental revenue for the three months ended March 31, 2000 was approximately $1,137,590, an increase of 10% over rents of approximately $1,033,563 for the comparable period in 1999. The increase is primarily attributable to an increase in monthly tenant rental rates and steady average occupancy rates. Operating expenses for the three months ended March 31, 2000 were approximately $498,494, a decrease of 7% over operating expenses of approximately $535,123 for the comparable period in 1999. The decrease is primarily attributable to a decrease in administration expenses. -7- 9 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY A CALIFORNIA LIMITED PARTNERSHIP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2000 AND 1999 - -------------------------------------------------------------------------------- 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: None -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: May 12, 2000 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 2 EXHIBIT 27
5 3-MOS DEC-31-2000 JAN-01-2000 MAR-31-2000 369,164 0 0 0 0 834,635 29,066,197 (10,534,395) 19,735,601 575,528 19,363,466 0 0 0 (203,393) 19,735,601 0 1,188,486 0 498,494 230,680 0 391,025 68,287 0 68,287 0 0 0 68,287 2.54 2.54
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