-----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, NrWVJK2/m5+lKNzJdIo5vmYZZjUecYlPknE57R9CeS8vAuLdrwYItyMzUhiEv4g+ auI+i0fblFud7HGpUDQJNQ== /in/edgar/work/20000816/0001095811-00-002863/0001095811-00-002863.txt : 20000922 0001095811-00-002863.hdr.sgml : 20000922 ACCESSION NUMBER: 0001095811-00-002863 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000816 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INCOME GROWTH PARTNERS LTD X CENTRAL INDEX KEY: 0000830051 STANDARD INDUSTRIAL CLASSIFICATION: [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: 704041 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 e10-q.txt FORM 10-Q QUARTERLY PERIOD ENDED JUNE 30, 2000 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 June 30, 2000 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 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY (A California Limited Partnership) CONSOLIDATED BALANCE SHEETS PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS
June 30 December 31, 2000 1999 ------------ ------------ unaudited ASSETS Rental properties Land $ 7,078,365 $ 7,078,365 Buildings and improvements 21,992,876 21,907,461 ------------ ------------ 29,071,241 28,985,826 Less accumulated depreciation (10,751,842) (10,316,949) ------------ ------------ 18,319,399 18,668,877 Cash and cash equivalents 382,653 434,712 Deferred loan fees, net of accumulated amortization of $214,206 and $188,166, respectively 562,977 589,017 Prepaids and other assets 377,321 125,864 ------------ ------------ $ 19,642,350 $ 19,818,470 ============ ============ LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) Mortgage loans payable $ 19,314,237 $ 19,382,900 Other liabilities Loan payable to affiliates 18,703 48,540 Accounts payable and accrued liabilities 173,887 172,559 Accrued interest payable 125,699 120,684 Security deposits 231,432 217,757 ------------ ------------ 19,863,958 19,942,440 Commitments and contingencies Partners' capital (deficit) (206,008) (113,970) Note receivable from general partner (15,600) (10,000) ------------ ------------ $ 19,642,350 $ 19,818,470 ============ ============
The accompanying notes are an integral part of these financial statements. 2 3 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY (A California Limited Partnership) CONSOLIDATED STATEMENTS OF OPERATIONS -- UNAUDITED
FOR THE THREE MONTHS FOR THE SIX MONTHS ENDED JUNE 30, ENDED JUNE 30, ----------------------------- ------------------------------- 2000 1999 2000 1999 ----------- ---------- ------------ ----------- REVENUES Rents $ 1,134,018 $ 1,067,424 $ 2,271,608 $ 2,100,987 Other 51,447 43,282 102,343 100,346 ----------- ---------- ----------- ----------- Total revenues 1,185,465 1,110,706 2,373,951 2,201,333 ---------- ------------ ----------- ----------- EXPENSES Operating expenses 435,095 474,929 933,589 1,010,052 Depreciation and amortization 230,253 233,319 460,933 465,117 Interest 354,853 369,879 745,878 749,171 ----------- ---------- ------------ ----------- Total expenses 1,020,201 1,078,127 2,607,502 2,224,340 ----------- ----------- ------------ ----------- Net income (loss) $ 165,264 $ 32,579 $ 233,551 $ (23,007) =========== ========== ============ =========== BASIC AND DILUTED PER LIMITED PARTNERSHIP UNIT DATA Net income (loss) per limited partnership unit $ 6.14 $ 1.21 $ 8.67 $ (0.85) =========== =========== =========== =========== Weighted average limited partnership units 26,926 26,926 26,926 26,926 =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 3 4 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY (A California Limited Partnership) CONSOLIDATED STATEMENTS OF CASH FLOWS - - UNAUDITED
FOR THE SIX MONTHS ENDED JUNE 30, ------------------------- 2000 1999 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 233,551 $ (23,007) Adjustments to reconcile net loss to net cash provided by operating activities Depreciation and amortization 460,933 465,117 (Increase) in Prepaid expenses and other assets (251,457) 9,080 (Decrease) in Accounts payable, accrued liabilities and accrued interest payable 6,343 (54,173) Security deposits 13,675 14,830 --------- --------- Net cash provided by operating activities 463,045 411,837 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (85,415) (66,094) --------- --------- Net cash used in investing activities (85,415) (66,094) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES Principal payments under mortgage debt (68,663) (96,488) Principal payments to affiliate (24,237) (11,900) Distributions to Investors (336,803) (200,417) --------- --------- Net cash used by financing activities (429,703) (308,805) --------- --------- Net increase (decrease) in cash and cash equivalents (52,059) 36,938 --------- --------- Cash and cash equivalents at beginning of period 434,712 441,909 --------- --------- Cash and cash equivalents at end of period $ 382,653 $ 478,847 ========= =========
The accompanying notes are an integral part of these financial statements 4 5 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, 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 6 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY (A CALIFORNIA LIMITED PARTNERSHIP) 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 six months ended June 30, 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 six months ended June 30, 2000 was approximately $463,000 compared to approximately $412,000 for the same period in 1999. The principal reason for this increase can be attributed to an increase in net income for the period. Net cash used in investing activities for the six months ended June 30, 2000 was approximately $85,000 compared to approximately $66,000 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 six months ended June 30, 2000 was approximately $430,000 compared to approximately $309,000 for the same period in 1999. The principal reason for this increase was an increase in distributions to investors. 6 7 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY (A California Limited Partnership) b. Results of Operations: COMPARISON OF THREE MONTHS ENDED JUNE 30, 2000 TO THE THREE MONTHS ENDED JUNE 30, 1999. Rental revenue for the three months ended June 30, 2000 was approximately $1,134,000, an increase of 6.28% over rents of approximately $1,067,000 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 June 30, 2000 were approximately $435,000, a decrease of 8.42% over operating expenses of approximately $475,000 for the comparable period in 1999. The decrease is primarily attributable to a decrease in administration expenses. COMPARISON OF SIX MONTHS ENDED JUNE 30, 2000 TO THE SIX MONTHS ENDED JUNE 30, 1999. Rental revenue for the six months ended June 30, 2000 was approximately $2,272,000, an increase of 8.14% over rents of approximately $2,101,000 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 six months ended June 30, 2000 were approximately $934,000, a decrease of 7.52% over operating expenses of approximately $1,010,000 for the comparable period in 1999. The decrease is primarily attributable to a decrease in administration expenses. 7 8 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: EX-27.1 8 9 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: August 15, 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-27.1 2 ex27-1.txt FINANCIAL DATA SCHEDULE
5 3-MOS DEC-31-2000 APR-01-2000 JUN-30-2000 382,653 0 0 0 0 940,298 29,071,241 10,751,842 19,642,350 531,018 19,314,237 0 0 0 (206,008) 19,642,350 0 1,185,465 0 435,095 230,253 0 354,853 165,264 0 165,264 0 0 0 165,264 6.14 6.14
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