-----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, C4umkHLqtAZhbDROyblOhH7mzTd6tVLMZQb7ndtXsFErHp7oxXHkM/A372E85eK7 1K4l35XQuHaxj7C7UhXGXg== 0000890566-97-002360.txt : 19971114 0000890566-97-002360.hdr.sgml : 19971114 ACCESSION NUMBER: 0000890566-97-002360 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971112 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: IDM PARTICIPATING INCOME CO II CENTRAL INDEX KEY: 0000832475 STANDARD INDUSTRIAL CLASSIFICATION: FINANCE SERVICES [6199] IRS NUMBER: 330177934 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-16832 FILM NUMBER: 97714086 BUSINESS ADDRESS: STREET 1: ONE WORLD TRADE CENTER STREET 2: STE 1000 CITY: LONG BEACH STATE: CA ZIP: 90831 BUSINESS PHONE: 2134980141 MAIL ADDRESS: STREET 1: ONE WORLD TRADE CENTER STREET 2: STE 1000 CITY: LONG BEACH STATE: CA ZIP: 90831-1000 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter ended September 30, 1997 ---------------------------------------------------- Commission file number 0-16832 ---------------------------------------------------- IDM Participating Income Company-II (A California Limited Partnership) State of California 33-0177934 - ------------------------------------- ----------------------------------- (State or other jurisdiction of (I.R.S. Employer Identification incorporation or organization) Number) 2424 S.E. Bristol Street, Suite 200 Newport Beach, California 92660 - ---------------------------------------- -------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (714) 225-7520 ----------------------------------------------- Indicate by check mark whether the registrant (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 such filing requirements for the past 90 days. Yes [X]. No[ ]. Number of limited partnership interests outstanding as of September 30, 1997: 200,000 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS The following financial statements are submitted in the next pages: PAGE NUMBER ------ Balance Sheets - September 30, 1997 and December 31, 1996 4 Statements of Operations - For the Nine Months Ended September 30, 1997 and 1996 and the Three Months Ended September 30, 1997 and 1996 5 Statements of Cash Flows - For the Nine Months Ended September 30, 1997 and 1996 6 Notes to Financial Statements 7 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Overview: The following discussion should be read in conjunction with the Partnership's Financial Statements and Notes thereto appearing elsewhere in this Form 10-Q. The bankruptcy proceeding and the Plan has had, and will continue to have, a material and substantial impact on the Partnership's liquidity, capital resources and results of operations, which are discussed below. Results of Operations: Comparison of 1997 to 1996. Interest income decreased in 1997 primarily as a result of the sale of the Meadow Wood Village, Ltd. note and junior deed of trust effective September 1, 1996. Interest continued to accrue at 12.12% through the sale date. For the nine months and three months ended June 30, 1996, the Partnership recognized interest income of $173,000 and $58,000, respectively, related to this loan. Meadow Wood Village, Ltd. discontinued interest payments in 1996. For the nine months and three months ended September 30, 1996, interest receivable of $192,000 and $58,000 related to the Meadow Wood Village, Ltd. note was reserved in its entirety. This loan was sold in 1996 and no such reserves were incurred in 1997. 2 During the third quarter of 1997 the Partnership received additional earnings reflected in the Statement of Operations in the amount of $100,000. This amount represents a payment towards a promissory note which had previously been reserved in its entirety. General and administrative expenses decreased $15,000 for the nine months ended September 30, 1997 when compared to the same period in 1996. This decrease was principally the result of professional fees incurred for a fair value opinion on the Villa Redondo loan receivable in 1996. No such costs were incurred in 1997. This decrease was partially offset by an increase in accounting and legal fees in 1997. For the three month period ended September 30, 1997, when compared to the same period in 1996, general and administrative expenses decreased by $15,000. This is the result of a decrease in accounting and legal fees incurred during the quarter. Liquidity and Capital Resources: During the nine months ended September 30, 1997, the Partnership's cash position decreased primarily as a result of loans to affiliates. This decrease was partially offset by the recovery of reserved receivables and the collection of interest income. The Partnership is in a liquid position at September 30, 1997 with cash balances of $290,000 and current liabilities of $2,000. The Partnership has no commitments for any future capital expenditures. Inflation: The Partnership does not expect inflation to be a material factor in its operations in 1997. 3 IDM PARTICIPATING INCOME COMPANY - II (A California Limited Partnership) BALANCE SHEETS September 30, 1997 and December 31, 1996 September 30, December 31, 1997 1996 ---------- ---------- ASSETS Cash .............................................. $ 290,000 $ 576,000 Loans to affiliates: Interest receivable ............................ 10,000 57,000 Principal, less reserve for possible losses of $2,024,000 at September 30, 1997 and $8,924,000 at December 31, 1996 ................ 769,000 415,000 Receivable from affiliate ......................... 265,000 150,000 ---------- ---------- Total Assets ...................................... $1,334,000 $1,198,000 ========== ========== LIABILITIES AND PARTNERS' CAPITAL Accounts payable .................................. $ 2,000 $ 1,000 Partners' capital: General Partner ................................... 436,000 436,000 Limited Partners: 200,000 units authorized, 200,000 issued and outstanding ................. 896,000 761,000 ---------- ---------- Total Partners' capital ........................... 1,332,000 1,197,000 ---------- ---------- Total Liabilities and Partners' capital ........... $1,334,000 $1,198,000 ========== ========== See accompanying notes 4 IDM PARTICIPATING INCOME COMPANY - II (A California Limited Partnership) STATEMENTS OF OPERATIONS For the Nine Months Ended September 30, 1997 and 1996 and for the Three Months Ended September 30, 1997 and 1996
Nine Months Ended Three Months Ended September 30, September 30, ---------------------- ----------------------- 1997 1996 1997 1996 --------- --------- --------- --------- Interest income ................... $ 84,000 $ 247,000 $ 28,000 $ 74,000 Recovery of reserved receivables .. 100,000 0 100,000 0 General and administrative expenses (49,000) (64,000) (2,000) (17,000) Provision for possible losses ..... 0 (192,000) 0 (58,000) --------- --------- --------- --------- Net income (loss) ................. $ 135,000 $ (9,000) $ 126,000 $ (1,000) --------- --------- --------- --------- Net income (loss) allocable to limited partners ................ $ 135,000 $ (9,000) $ 126,000 $ (1,000) ========= ========= ========= ========= Number of limited partnership interests outstanding ........... 200,000 200,000 200,000 200,000 ========= ========= ========= ========= Net income (loss) per limited partnership interest ............ $ 0.68 $ (0.05) $ 0.63 $ (0.01) ========= ========= ========= =========
See accompanying notes 5 IDM PARTICIPATING INCOME COMPANY - II (A California Limited Partnership) STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 1997 and 1996
Nine Months Ended September 30, ------------------------------- 1997 1996 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) ................................. $ 135,000 $ (9,000) Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: Decrease (increase) in interest receivable .... 47,000 (198,000) Recovery of reserved receivables .............. (100,000) 0 Provision for possible losses ................. 0 192,000 Increase in accounts payable .................. 1,000 2,000 --------- --------- Net cash used in operating activities ......... 83,000 (13,000) --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Loans to affiliates ............................... (373,000) 0 Collections of loans from affiliates .............. 4,000 474,000 --------- --------- Net cash (used in) provided by investing activities ........................ (369,000) 474,000 --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: Distributions to partners ......................... 0 0 --------- --------- Net cash used in financing activities ......... 0 0 --------- --------- NET (DECREASE) INCREASE IN CASH ..................... (286,000) 461,000 Cash beginning of period .......................... 576,000 14,000 --------- --------- Cash end of period ................................ $ 290,000 $ 475,000 ========= =========
See accompanying notes 6 IDM PARTICIPATING INCOME COMPANY-II A California Limited Partnership Notes to Financial Statements 1. BASIS OF FINANCIAL STATEMENTS In the opinion of the Partnership's management, these unaudited financial statements reflect all adjustments which are necessary for a fair presentation of its financial position at September 30, 1997 and results of operations and cash flows for the periods presented. All adjustments included in these statements are of a normal and recurring nature. These financial statements should be read in conjunction with the financial statements and notes thereto contained in the Form 10-K of the Partnership for the year ended December 31, 1996. 7 PART IV - OTHER INFORMATION ITEM 14. EXHIBITS AND REPORTS ON FORM 8-K A. EXHIBITS: The following Exhibits are filed herewith pursuant to Rule 601 of Regulation S-K. (27) Financial Data Schedule B. REPORTS ON FORM 8-K None. 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. IDM PARTICIPATING INCOME COMPANY-II, a California Limited Partnership IDM PARTICIPATING INCOME CORPORATION General Partner of the General Partner Date: October 27, 1997 STEVEN M. SPEIER Steven M. Speier President and Director 8 EX-27 2
5 THE FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM IDM PARTICIPATING INCOME COMPANY - II SEPTEMBER 30, 1997 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 9-MOS DEC-31-1997 SEP-30-1997 290,000 0 275,000 0 0 565,000 0 0 1,334,000 2,000 0 0 0 0 1,332,000 1,334,000 0 184,000 0 0 49,000 0 0 135,000 0 135,000 0 0 0 135,000 .68 .68
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