-----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, Ol2e/Wes1zQXfovVbgbeu3vFCc2cBRiLB+gb3aD/PdONpCkIelTEa1tX/MNxMt0A 4FWXU/5/0vh6hgYYe5RobQ== 0000890566-99-001399.txt : 19991109 0000890566-99-001399.hdr.sgml : 19991109 ACCESSION NUMBER: 0000890566-99-001399 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990930 FILED AS OF DATE: 19991108 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: 99743480 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, 1999 ---------------------------------------------------- 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) 7700 Irvine Center Drive Suite 400 Irvine, California 92618 - -------------------------------------- ----------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (713) 706-6271 ----------------------------------------------- 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, 1999: 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, 1999 and December 31, 1998 4 Statements of Operations - For the Nine Months Ended September 30, 1999 and 1998 and the Three Months Ended September 30, 1999 and 1998 5 Statements of Cash Flows - For the Nine Months Ended September 30, 1999 and 1998 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 1999 to 1998. Interest income for the nine months and three months ended September 30, 1999 increased by $47,000 and $16,000, respectively, when compared to the corresponding periods in 1998. These increases were primarily due to interest income associated with the funding of an additional $585,000 in 1998 to an affiliate on an existing secured loan. General and administrative expenses for the nine months ended September 30, 1999 increased by $3,000, or 6%, when compared to the same period in the prior year, primarily due to an increase in insurance costs. This increase was partially offset by a decrease in data processing fees. For the three months ended September 30, 1999, general and administrative expenses decreased by $2,000, or 20%, principally due to lower data processing and professional fees incurred during the quarter. 2 Liquidity and Capital Resources: The Partnership is in a liquid position at September 30, 1999 with a cash balance of $24,000 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 1999. Year 2000 Compliance: The Year 2000 Compliance issue is the result of computer programs being written using two digits rather than four to define the applicable year. Any of the Partnership's computer programs that have time-sensitive software may recognize a date using "00" as the year 1900 rather than the year 2000. This could result in a system failure or miscalculations causing disruptions of operations, including, among other things, a temporary inability to process transactions, send invoices, or engage in similar normal business activities. As a result, many companies' software and computer systems may need to be upgraded or replaced in order to comply with Year 2000 requirements. The total cost to the Partnership of activities associated with Year 2000 Compliance is not anticipated to be material to its financial position or results of operations in any given year. In January 1999, the Partnership began utilizing a new software program to maintain books and records. The new software program is Year 2000 compliant. The total amount of potential risk that would be reasonably likely to result from Year 2000 failures cannot presently be estimated. In the event the Partnership does not properly identify Year 2000 issues in a timely manner, there can be no assurance that Year 2000 issues will not materially affect the Partnership's results. The Partnership's contingency plan should systems fail due to the Year 2000 date change is to temporarily convert to a manual system. The Partnership believes it could temporarily operate on a manual system without adversely impacting operations. The preceding Year 2000 discussion contains various forward-looking statements which represent the Partnership's beliefs or expectations regarding future events. All forward-looking statements involve a number of risks and uncertainties that could cause the actual results to differ materially from projected results. 3 IDM PARTICIPATING INCOME COMPANY - II (A CALIFORNIA LIMITED PARTNERSHIP) BALANCE SHEETS SEPTEMBER 30, 1999 AND DECEMBER 31, 1998 - --------------------------------------------------------------------------------
SEPTEMBER 30, 1999 DECEMBER 31, 1998 -------------------- -------------------- ASSETS Cash ............................................... $ 24,000 $ 8,000 Loans to affiliates: Interest receivable ............................ 131,000 1,000 Principal, less reserve for possible losses of $859,000 at September 30, 1999 and December 31, 1998 .............................. 1,490,000 1,542,000 Prepaid expenses ................................... 0 7,000 -------------------- -------------------- Total Assets ....................................... $ 1,645,000 $ 1,558,000 ==================== ==================== LIABILITIES AND PARTNERS' CAPITAL Accounts payable ................................... $ 2,000 $ 0 General Partner .................................... 439,000 439,000 Limited Partners: 200,000 units authorized, 200,000 issued and outstanding ................. 1,204,000 1,119,000 -------------------- -------------------- Total Partners' capital ............................ 1,643,000 1,558,000 -------------------- -------------------- Total Liabilities and Partners' capital ............ $ 1,645,000 $ 1,558,000 ==================== ==================== Limited partners' equity per unit .................. $ 6.02 $ 5.60 ==================== ====================
SEE ACCOMPANYING NOTES 4 IDM PARTICIPATING INCOME COMPANY - II (A California Limited Partnership) STATEMENTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998 AND FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998 - --------------------------------------------------------------------------------
NINE MONTHS ENDED THREE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ---------------------- ---------------------- 1999 1998 1999 1998 --------- --------- --------- --------- Interest income ................... $ 138,000 $ 91,000 $ 46,000 $ 30,000 General and administrative expenses (53,000) (50,000) (8,000) (10,000) --------- --------- --------- --------- Net income ........................ $ 85,000 $ 41,000 $ 38,000 $ 20,000 --------- --------- --------- --------- Net income allocable to limited partners ............... $ 85,000 $ 41,000 $ 38,000 $ 20,000 ========= ========= ========= ========= Number of limited partnership interests outstanding .......... 200,000 200,000 200,000 200,000 ========= ========= ========= ========= Net income per limited partnership interest ........... $ 0.43 $ 0.21 $ 0.19 $ 0.10 ========= ========= ========= =========
SEE ACCOMPANYING NOTES 5 IDM PARTICIPATING INCOME COMPANY - II (A CALIFORNIA LIMITED PARTNERSHIP) STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998 - --------------------------------------------------------------------------------
NINE MONTHS ENDED SEPTEMBER 30, -------------------------------------- 1999 1998 ----------------- ----------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income ....................................... $ 85,000 $ 41,000 Adjustments to reconcile net income to cash used in operating activities: Increase in interest receivable ............... (130,000) (78,000) Increase in receivables from affiliates ....... 0 (434,000) Decrease (increase) in prepaid expenses ....... 7,000 (8,000) Increase (decrease) in accounts payable ....... 2,000 (6,000) ----------------- ----------------- Net cash used in operating activities ......... (36,000) (485,000) ----------------- ----------------- CASH FLOWS FROM INVESTING ACTIVITIES: Collections of loans from affiliates ............. 52,000 396,000 ----------------- ----------------- Net cash provided by investing activities ..... 52,000 396,000 ----------------- ----------------- NET INCREASE (DECREASE) IN CASH .................... 16,000 (89,000) Cash beginning of period ........................ 8,000 94,000 ----------------- ----------------- Cash end of period .............................. $ 24,000 $ 5,000 ================= =================
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, 1999 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, 1998. 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, 1999 /s/ WILLIAM J. CARDEN ----------------- ------------------------------------ William J. Carden Director 8 EX-27 2
5 THE FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM IDM PARTICIPATING INCOME COMPANY - II SEPTEMBER 30, 1999 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 9-MOS DEC-31-1999 SEP-30-1999 24,000 0 131,000 0 0 155,000 0 0 1,645,000 2,000 0 0 0 0 1,643,000 1,645,000 0 138,000 0 53,000 0 0 0 85,000 0 85,000 0 0 0 85,000 .43 .43
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