-----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, ERC2RrHZjwNKpp3xvDtf/ccSYnuJfyX0FILRGxTxFz2+xq6C/jFPa3NXJUAprwuL 8vX+FvFMF7NOq4rFdBWALw== 0000845035-96-000008.txt : 19960918 0000845035-96-000008.hdr.sgml : 19960918 ACCESSION NUMBER: 0000845035-96-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960813 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOSTON FINANCIAL TAX CREDIT FUND VIII LP CENTRAL INDEX KEY: 0000911568 STANDARD INDUSTRIAL CLASSIFICATION: 6513 IRS NUMBER: 043205879 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-26522 FILM NUMBER: 96610499 BUSINESS ADDRESS: STREET 1: 101 ARCH ST CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6174393911 FORMER COMPANY: FORMER CONFORMED NAME: BOSTON FINANCIAL TAX CREDIT FUND VIII DATE OF NAME CHANGE: 19930902 10-Q 1 Q1 1996 August 13, 1996 Securities and Exchange Commission Filer Support, Edgar Operation Center, Stop 0-7 6432 General Green Way Alexandria, VA 22312 Boston Financial Tax Credit Fund VIII, A Limited Partnership Report on Form 10-Q for Quarter Ended June 30, 1996 File No. 0-26522 Gentlemen: Pursuant to the requirements of Rule 901(d) of Regulation S-T, enclosed is one copy of subject report. Very truly yours, /s/ Marie D. Reynolds Marie D. Reynolds Assistant Controller TC8-Q1.DOC UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Quarterly Report Under Section 13 or 15(d)of the Securities Exchange Act of 1934 (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, 1996 --------------------------------- OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to For Quarter Ended June 30, 1996 Commission file number 0-26522 Boston Financial Tax Credit Fund VIII, A Limited Partnership (Exact name of registrant as specified in its charter) Massachusetts 04-3205879 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 101 Arch Street, Boston, Massachusetts 02110-1106 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (617) 439-3911 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 . BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP TABLE OF CONTENTS PART I. FINANCIAL INFORMATION Page No. Item 1. Financial Statements Balance Sheets - June 30, 1996 (Unaudited) and March 31, 1996 1 Statements of Operations (Unaudited) - For the Three Months Ended June 30, 1996 and 1995 2 Statement of Changes in Partners' Equity (Deficiency) (Unaudited) - For the Three Months Ended June 30, 1996 3 Statements of Cash Flows (Unaudited) - For the Three Months Ended June 30, 1996 and 1995 4 Notes to Financial Statements (Unaudited) 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 PART II - OTHER INFORMATION Items 1-6 10 SIGNATURE 11 BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP BALANCE SHEETS
June 30, March 31, 1996 1996 (Unaudited) Assets Current assets: Cash and cash equivalents $ 102,025 $ 71,715 Other current assets 20,804 33,038 -------------- ------------ Total current assets 122,829 104,753 Investments in Local Limited Partnerships (Note 2) 28,301,699 26,064,146 Restricted cash 484,201 1,369,364 Marketable securities, at fair value (Note 1) 2,073,119 3,709,881 Organization costs, net of accumulated amortization of $23,333 and $20,833 as of June 30 and March 31, 1996, respectively 26,667 29,167 -------------- ------------ Total Assets $ 31,008,515 $ 31,277,311 ============== ============ Liabilities and Partners' Equity Current liabilities: Accounts payable to affiliate $ 67,220 $67,175 Accrued expenses 59,332 35,184 -------------- ------------ Total current liabilities 126,552 102,359 -------------- ------------ Commitments (Note 3) General, Initial and Investor Limited Partners' Equity 30,891,747 31,175,486 Net unrealized losses on marketable securities (9,784) (534) -------------- ------------ Total Partners' Equity 30,881,963 31,174,952 -------------- ------------ Total Liabilities and Partners' Equity $ 31,008,515 $ 31,277,311 ============== ============
The accompanying notes are an integral part of these financial statements. BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP STATEMENTS OF OPERATIONS (Unaudited) For the Three Months Ended June 30, 1996 and 1995
1996 1995 --------------- --------- Revenue: Investment $ 1,886 $ 194,420 Other 16,734 150 ------------ --------- Total Revenue 18,620 194,570 ------------ --------- Expenses: Asset management fees, related party 48,071 46,853 General and administrative (includes reimbursements to an affiliate in the amounts of $31,685 and $26,093 in 1996 and 1995, respectively) 70,091 49,528 Amortization 9,987 5,144 ------------ --------- Total Expenses 128,149 101,525 ------------ --------- Income (loss) before equity in income (losses) of Local Limited Partnerships (109,529) 93,045 Equity in income (losses) of Local Limited Partnerships (174,210) 8,891 ------------ --------- Net Income (Loss) $ (283,739) $ 101,936 ============ ========= Net Income (Loss) allocated To General Partners $ (2,837) $ 1,019 To Limited Partners (280,902) 100,917 ------------ --------- $ (283,739) $ 101,936 ============ ========= Net Income (Loss) per Limited Partnership Unit (36,947 Units) $ (7.60) $ 2.73 =========== =========== The accompanying notes are an integral part of these financial statements.
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY) (Unaudited) For the Three Months Ended June 30, 1996
Initial Investor Net General Limited Limited Unrealized Partners Partners Partners Losses Total Balance at March 31, 1996 $ (4,592) $ 100 $ 31,179,978 $ (534) $ 31,174,952 Net change in unrealized losses on marketable securities available for sale - - - (9,250) (9,250) Net Loss (2,837) - (280,902) - (283,739) -------- -------- ----------- -------- ------------- Balance at June 30, 1996 $ (7,429) $ 100 $ 30,899,076 $ (9,784) $ 30,881,963 ======== ======== ============ ======== ============= The accompanying notes are an integral part of these financial statements.
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS (Unaudited) For the Three Months Ended June 30, 1996 and 1995
1996 1995 -------------- ---------- Net cash used for operating activities $ (64,003) $ (80,693) ------------ ------------ Cash flows from investing activities: Investment in Local Limited Partnerships (2,422,771) (1,009,075) Restricted cash 885,163 - Cash distributions received from Local Limited Partnerships 4,409 - Purchases of marketable securities (3,424,134) (1,250,085) Proceeds from sales and maturities of marketable securities 5,051,646 1,430,000 Payment of acquisition expenses - (64,919) ------------ ------------ Net cash provided by (used for) investing activities 94,313 (894,079) ------------ ------------ Cash flows from financing activities: Refund of organizational and offering expenses - 6,332 ------------ ------------ Net cash provided by financing activities - 6,332 ------------ ------------ Net increase (decrease) in cash and cash equivalents 30,310 (968,440) Cash and cash equivalents, beginning of period 71,715 10,495,010 ------------ ------------ Cash and cash equivalents, end of period $ 102,025 $ 9,526,570 ============ ============
The accompanying notes are an integral part of these financial statements. BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP Notes to Financial Statements (Unaudited) 11 The unaudited financial statements presented herein have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles. These statements should be read in conjunction with the financial statements and notes thereto included with the Partnership's 10-K for the year ended March 31, 1996. In the opinion of management, these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Partnership's financial position and results of operations. The results of operations for the periods may not be indicative of the results to be expected for the year. Certain reclassifications have been made to prior period financial statements to conform to current period classifications. 1. Marketable Securities A summary of marketable securities is as follows:
Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value Debt securities issued by the US Treasury and other US government corporations and agencies $ 1,340,232 $ - $ (9,784) $ 1,330,448 Other debt securities 742,671 - - 742,671 ----------- ----------- ----------- ----------- Marketable securities at June 30, 1996 $ 2,082,903 $ - $ (9,784) $ 2,073,119 =========== =========== =========== =========== Debt securities issued by the US Treasury $ 1,465,038 $ 195 $ (2,839) $ 1,462,394 Other debt securities 2,245,377 2,500 (390) 2,247,487 ----------- ----------- ----------- ----------- Marketable securities at March 31, 1996 $ 3,710,415 $ 2,695 $ (3,229) $ 3,709,881 =========== =========== =========== ===========
The contractual maturities at June 30, 1996 are as follows:
Fair Cost Value Due in one year or less $ 1,144,546 $ 1,143,107 Due in one year to five years 938,357 930,012 ------------ ----------- $ 2,082,903 $ 2,073,119 ============ ===========
Actual maturities may differ from contractual maturities because some borrowers have the right to call or prepay obligations. Proceeds from the sales of fixed maturities were approximately $5,052,000 for the three months ended June 30, 1996. Included in investment income are gross gains of $41,574 and $12,994 for the three months ended June 30, 1996 and 1995, respectively. BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP Notes to Financial Statements (Unaudited) (continued) 2. Investments in Local Limited Partnerships The Fund has acquired an interest in ten Local Limited Partnerships which own and operate multi-family housing complexes. The Fund, as Investor Limited Partner, pursuant to the Local Limited Partnership Agreements, has generally acquired a 99% interest in the profits, losses, tax credits and cash flows from operations of the Local Limited Partnerships, with the exception of Springwood, Hemlock Ridge and West End Place, which are 79.20%, 77% and 90%, respectively. An affiliate of the General Partner owns the remaining 19.80% Limited Partner interest in Springwood. Upon dissolution, proceeds will be distributed according to the partnership agreements. The following is a summary of Investments in Local Limited Partnerships:
June 30, 1996 (Unaudited) Capital Contributions paid to Local Limited Partnerships $ 28,519,644 Cumulative equity in losses of Local Limited Partnerships (1,216,918) Cumulative cash distributions received from Local Limited Partnerships (17,732) Investment in Local Limited Partnerships before adjustments 27,284,994 Excess of investment cost over the underlying net assets acquired: Acquisition fees and expenses 1,048,010 Accumulated amortization of acquisition fees and expenses (31,305) ------------- Investment in Local Limited Partnerships $ 28,301,699 =============
Summarized financial information as of March 31, 1996 (due to the Funds policy of reporting the financial information of its Local Limited Partnership interests on a 90 day lag basis), of the ten Local Limited Partnerships in which the Fund was invested as of that date is as follows: Summarized Balance Sheets - March 31, 1996 (Unaudited)
Assets: Investment property, net $ 69,871,143 Current assets 3,036,880 Other assets 2,729,658 ------------- Total Assets $ 75,637,681 ============= Liabilities and Partners' Equity: Long-term debt $ 38,189,150 Current liabilities 9,172,823 Other liabilities 1,380,475 ------------- Total Liabilities 48,742,448 Partners' Equity 26,895,233 ------------- Total Liabilities and Partners' Equity $ 75,637,681 =============
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP Notes to Financial Statements (Unaudited) (continued) 2. Investments in Local Limited Partnerships (continued) Summarized Income Statements (Unaudited) - For the Three Months Ended March 31, 1996
Rental and other income $ 1,928,485 ------------- Expenses: Operating 837,883 Interest 644,191 Depreciation and amortization 638,267 ------------- Total Expenses 2,120,341 Net Loss $ (191,856) ============== Partnership's share of net loss $ (174,210) ============= Other Partners' share of net loss $ (17,646) =============
3. Commitments At June 30, 1996, the Fund has committed to make future capital contributions and pay future purchase price installments on its investments in Local Limited Partnerships. These future payments are contingent upon the achievement of certain criteria as set forth in the Local Limited Partnership Agreement and total approximately $857,000. BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources At June 30, 1996, the Fund had cash and cash equivalents of $102,025 as compared to $71,715 at March 31, 1996. This increase is primarily attributable to proceeds from the sale of marketable securities, offset by cash paid for investments in Local Limited Partnerships, purchase of marketable securities, and net cash used for operations. The Fund had restricted cash of $484,201 at June 30, 1996 as compared to $1,369,364 at March 31, 1996. The decrease is the result of capital contributions made to one of the Local Limited Partnerships in which the Fund has invested. As of June 30, 1996, approximately $1,649,000 of marketable securities has been designated as reserves. The reserves are established to be used for working capital of the Fund and contingencies related to the ownership of Local Limited Partnership interests. Management believes that the interest income earned on reserves, along with cash distributions received from Local Limited Partnerships, to the extent available, will be sufficient to fund the Fund's ongoing operations. Reserves may be used to fund operating deficits, if the Managing General Partner deems funding appropriate. At June 30, 1996, the Fund has committed to make future capital contributions and pay future purchase price installments on its investments in Local Limited Partnerships. These future payments are contingent upon the achievement of certain criteria as set forth in the Local Limited Partnership Agreement and total approximately $857,000. Since the Fund invests as a limited partner, the Fund has no contractual duty to provide additional funds to Local Limited Partnerships beyond its specified investment. Thus, as of June 30, 1996, the Fund had no contractual or other obligation to any Local Limited Partnership, which had not been paid or provided for, except as disclosed above. In the event a Local Limited Partnership encounters operating difficulties requiring additional funds, the Fund might deem it in its best interest to voluntarily provide such funds, in order to protect its investment. No such event has occurred to date. Cash Distributions No cash distributions were made during the three months ended June 30, 1996. Results of Operations 1996 versus 1995 For the three months ended June 30, 1996, the Fund's operations resulted in a net loss of $283,739, as compared to net income of $101,936 for the three months ended June 30, 1995. The change to a net loss position is primarily attributable to an increase in equity in losses of Local Limited Partnerships and a decrease in investment income. The change in equity in losses of Local Limited Partnerships for the three months ended June 30, 1996, as compared to the same period in 1995, is primarily attributable to an increase in the number of operational Local Limited Partnerships from five as of June, 1995 to ten as of June, 1996. Since many of the properties were under construction during the three months ended June 30, 1995, the results of operations are not indicative of the results to be expected for the future, nor are they comparable. BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations (continued) The decline in investment income is due primarily to lower average cash balances, as a result of the Fund's investment in Local Limited Partnerships. Property Discussions The Fund is invested in ten Local Limited Partnerships which own ten properties located in eight states. Two properties, representing 356 units, underwent rehabilitation, and eight properties, representing 1001 units, are new construction. Each of the ten properties are complete, through initial lease-up and operating as expected. BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP PART II OTHER INFORMATION Items 1-5 Not applicable Item 6 Exhibits and reports on Form 8-K (a) Exhibits - None (b) Reports on Form 8-K - No reports on Form 8-K were filed during the quarter ended June 30, 1996. BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP SIGNATURE 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. DATED: August 13, 1996 BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP By: Arch Street VIII Limited Partnership, its General Partner /s/Georgia Murray Georgia Murray A Managing Director, Treasurer and Chief Financial Officer EX-27 2 TCVIII FINANCIAL DATA SCHEDULE FOR FISCAL 1997 Q1
5 3-MOS MAR-31-1997 JUN-30-1996 102,025 2,073,119 000 000 000 20,804 000 000 31,008,515 126,552 000 000 000 000 30,881,963 31,008,515 000 18,620 000 000 128,149 000 000 000 000 000 000 000 000 (283,739) (7.60) 000 Included in total assets: Investments in Local Limited Partnerships $28,301,699, Restricted cash $484,201, Organizational costs, net $26,667 Total revenue includes: Investment $1,886 and Other $16,734. Included in Other Expenses: Asset Management fees $48,071, General and Administrative $70,091, and Amortization $9,987. Net loss includes: Equity in losses of Local Limited Partnerships of $174,210.
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