-----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, O8QzBuRJGH70iK9z6pG/0+XbXh04VsZ7Jco9gH/AOu355hQtgGKgqxSvXH9YdasT /GOQrupQeEOEw7ZCAlAiGQ== 0000890566-98-001785.txt : 19981113 0000890566-98-001785.hdr.sgml : 19981113 ACCESSION NUMBER: 0000890566-98-001785 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981112 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: 98744931 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, 1998 ---------------------------------------------------- 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, 1998: 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, 1998 and December 31, 1997 4 Statements of Operations - For the Nine Months Ended September 30, 1998 and 1997 and the Three Months Ended September 30, 1998 and 1997 5 Statements of Cash Flows - For the Nine Months Ended September 30, 1998 and 1997 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 1998 to 1997. Interest income increased by $7,000 for the nine months ended September 30, 1998, when compared to the corresponding period in 1997, primarily due to interest income associated with the funding of new participating loans in the prior year. The total amount funded by the Partnership in 1997 was $1,054,000. The increase in interest income was partially offset due to the acceptance of a $350,000 payoff on the Harbor Plaza Ltd. loan in January 1998. For the nine months and three months ended September 30, 1998, the Partnership recognized interest income of $91,000 and $30,000, respectively, related to the new participating loans. 2 General and administrative expenses increased by $1,000 for the nine months ended September 30, 1998 when compared to the same period in 1997. An increase in data processing costs was partially offset by a decrease in accounting fees incurred during the period. For the three months ended September 30, 1998, general and administrative expenses increased by $8,000, primarily due to an increase in data processing costs and legal fees. Liquidity and Capital Resources: During the nine months ended September 30, 1998, the Partnership's cash position decreased primarily as a result of loans to affiliates. This decrease was partially offset due to the acceptance of a $350,000 payoff on the Harbor Plaza Ltd. loan in January 1998. The Partnership is in a liquid position at September 30, 1998 with a cash balance of $5,000 and no current liabilities. 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 1998. 3 IDM PARTICIPATING INCOME COMPANY - II (A California Limited Partnership) BALANCE SHEETS September 30, 1998 and December 31, 1997 - -------------------------------------------------------------------------------- September 30, December 31, 1998 1997 ----------- ----------- ASSETS Cash ............................................... $ 5,000 $ 94,000 Loans to affiliates: Interest receivable ............................. 91,000 13,000 Principal, less reserve for possible losses of $859,000 at September 30, 1998 and December 31, 1997 ............................... 974,000 1,370,000 Receivables from affiliates ........................ 435,000 1,000 Prepaid expenses ................................... 8,000 0 ---------- ---------- Total Assets ....................................... $1,513,000 $1,478,000 ========== ========== LIABILITIES AND PARTNERS' CAPITAL Accounts payable ................................... $ 0 $ 6,000 Partners' capital: General Partner .................................... 438,000 438,000 Limited Partners: 200,000 units authorized, 200,000 issued and outstanding .................. 1,075,000 1,034,000 ---------- ---------- Total Partners' capital ............................ 1,513,000 1,472,000 ---------- ---------- Total Liabilities and Partners' capital ............ $1,513,000 $1,478,000 ========== ========== Limited partners' equity per unit .................. $ 5.38 $ 5.17 ========== ========== See accompanying notes 4 IDM PARTICIPATING INCOME COMPANY - II (A California Limited Partnership) STATEMENTS OF OPERATIONS For the Nine Months Ended September 30, 1998 and 1997 and for the Three Months Ended September 30, 1997 and 1998 - --------------------------------------------------------------------------------
Nine Months Ended Three Months Ended September 30, September 30, ---------------------- ---------------------- 1998 1997 1998 1997 --------- --------- --------- --------- Interest income ................... $ 91,000 $ 84,000 $ 30,000 $ 28,000 Recovery of reserved receivables .. 0 100,000 0 100,000 General and administrative expenses (50,000) (49,000) (10,000) (2,000) --------- --------- --------- --------- Net income ........................ $ 41,000 $ 135,000 $ 20,000 $ 126,000 --------- --------- --------- --------- Net income allocable to limited partners ............... $ 41,000 $ 135,000 $ 20,000 $ 126,000 ========= ========= ========= ========= Number of limited partnership interests outstanding .......... 200,000 200,000 200,000 200,000 ========= ========= ========= ========= Net income per limited partnership interest ........... $ 0.21 $ 0.68 $ 0.10 $ 0.63 ========= ========= ========= =========
See accompanying notes 5 IDM PARTICIPATING INCOME COMPANY - II (A California Limited Partnership) STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 1998 and 1997 - --------------------------------------------------------------------------------
Nine Months Ended September 30, ------------------------------ 1998 1997 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income ........................................... $ 41,000 $ 135,000 Adjustments to reconcile net income to cash (used in) provided by operating activities: (Increase) decrease in interest receivable ........ (78,000) 47,000 Recovery of reserved receivables .................. 0 (100,000) Increase in receivables from affiliates ........... (434,000) 0 Increase in prepaid expenses ...................... (8,000) 0 (Decrease) increase in accounts payable ........... (6,000) 1,000 --------- --------- Net cash (used in) provided by operating activities .............................. (485,000) 83,000 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Loans to affiliates .................................. 0 (373,000) Collections of loans from affiliates ................. 396,000 4,000 --------- --------- Net cash provided by (used in) investing activities 396,000 (369,000) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: Net cash used in financing activities ............. 0 0 --------- --------- NET DECREASE IN CASH ................................... (89,000) (286,000) Cash beginning of period ............................ 94,000 576,000 --------- --------- Cash end of period .................................. $ 5,000 $ 290,000 ========= =========
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, 1998 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, 1997. 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: November 1, 1998 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, 1998 FINANCIAL STATEMENT AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 9-MOS DEC-31-1998 SEP-30-1998 5,000 0 526,000 0 0 539,000 0 0 1,513,000 0 0 0 0 0 1,513,000 1,513,000 0 91,000 0 50,000 0 0 0 41,000 0 41,000 0 0 0 41,000 .21 .21
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