-----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, Gl8bkueGQfhUsJFlg8pxWwwEny2XxlGkGJfZGsEmWoWWMkFPOP1sYjOZGziCA5wc mp1AdH+MV46ERSl2JGLWqQ== 0000912057-99-004010.txt : 19991110 0000912057-99-004010.hdr.sgml : 19991110 ACCESSION NUMBER: 0000912057-99-004010 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990930 FILED AS OF DATE: 19991109 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VENETIAN PARK ASSOCIATES LTD CENTRAL INDEX KEY: 0000745345 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 953887496 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-11980 FILM NUMBER: 99743742 BUSINESS ADDRESS: STREET 1: 3250 OCEAN PARK BLVD. STE 375 CITY: SANTA MONICA STATE: CA ZIP: 90405 BUSINESS PHONE: 310-452-9040 MAIL ADDRESS: STREET 1: 3250 OCEAN PARK BLVD STE 375 CITY: SANTA MONICA STATE: CA ZIP: 90405 10-Q 1 10-Q FORM 10Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended Commission File September 30, 1999 No. 0-11980 VENETIAN PARK ASSOCIATES (Exact name of Registrant as specified in its charter) California 95-3887496 (State or Other Jurisdiction (I.R.S. Employer of Incorporation or Organization) Identification No.) 3250 Ocean Park Blvd., Ste. 380 Santa Monica, CA 90405 (Address of Principal Executive Offices, Including Zip Code) Registrant's telephone number, including area code: (310) 450-6866 ------------------------------------- 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 . --- --- Indicate the number of shares (units) outstanding of each of the issuer's classes of common stock (units) as of the latest practicable date (applicable only to corporate issuer) 6,041 limited partnership units issued and outstanding. VENETIAN PARK ASSOCIATES, LTD. (A California Limited Partnership) REPORT ON FORM 10-Q For the Quarter Ended September 30, 1999 INDEX
Page No. -------- PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS: Balance Sheets 3-4 Statements of Operations 5-6 Statements of Changes in Partners' Equity 7 Statements of Cash Flows 8 Notes to Financial Statements 9 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. 10-11 PART II. OTHER INFORMATION 12 SIGNATURE 13
PART I. FINANCIAL INFORMATION VENETIAN PARK ASSOCIATES, LTD. (A California Limited Partnership) BALANCE SHEETS ASSETS
September 30, DECEMBER 31, 1999 1998 ------------- ------------ (unaudited) (audited) Current Assets: Cash $ 39,035 $ 38,050 Tenants' Rents Receivable 3,279 2,309 Tenants' Security Deposits 99,490 97,232 Prepaid Expenses 44,216 25,660 Insurance Receivable 38,016 158,642 ---------- ---------- TOTAL CURRENT ASSETS 224,035 321,893 Restricted Deposits & Funded Reserves: Mortgage Escrow Deposits 69,392 62,560 Reserve for Replacements 172,241 166,672 ---------- ---------- TOTAL RESTRICTED DEPOSITS & RESERVES 241,633 229,232 Fixed Assets, Net 6,394,423 6,603,181 Other Assets: Prepaid Loan Fees 17,108 17,816 Deposits 16,350 726 ---------- ---------- TOTAL OTHER ASSETS 33,458 18,542 TOTAL ASSETS $6,893,549 $7,172,848 ========== ==========
The accompanying notes are an integral part of these Financial Statements. 3 VENETIAN PARK ASSOCIATES, LTD. (A California Limited Partnership) BALANCE SHEETS LIABILITIES AND PARTNERS' EQUITY
September 30, DECEMBER 31, 1999 1998 ------------- ------------ (unaudited) (audited) Current Liabilities: Accounts Payable & accrued expenses $ 102,527 $ 186,969 Accrued Interest 35,466 35,466 Tenants' Prepaid Rents 8,580 5,998 Tenants' Security Deposits 96,198 89,251 Current Portion of Long Term Debt 137,777 137,777 ---------- ---------- TOTAL CURRENT LIABILITIES 380,548 455,461 Other Liabilities: Mortgage Payable - 1st Trust Deed 5,094,564 5,194,852 ---------- ---------- TOTAL OTHER LIABILITIES 5,094,564 5,194,852 Partners Equity 1,418,437 1,522,535 TOTAL LIABILITIES AND PARTNERS EQUITY $6,893,549 $7,172,848 ========== ==========
The accompanying notes are an integral part of these Financial Statements. 4 VENETIAN PARK ASSOCIATES, LTD. (A California Limited Partnership) STATEMENTS OF OPERATIONS (Unaudited)
THREE MONTHS THREE MONTHS ENDED ENDED September 30, September 30, 1999 1998 ------------- ------------- Operating Revenue: Rental Income $ 426,508 $ 384,049 Other Rental and Interest Income 17,643 17,752 ---------- ---------- TOTAL OPERATING REVENUE 444,151 401,801 ---------- ---------- Operating Expenses: Repair and Maintenance 54,932 69,594 Utilities 51,362 48,073 Managers Salaries 53,834 45,863 Management Fees 22,194 16,645 General and Administrative 55,615 61,130 Real Property Taxes and Insurance 34,257 33,789 Financial Expenses 108,187 109,739 Depreciation 69,586 69,044 Amortization 236 478 ---------- ---------- TOTAL OPERATING EXPENSES 450,203 454,355 ---------- ---------- NET INCOME (LOSS) FROM OPERATIONS $ (6,052) $ (52,554) ---------- ---------- ---------- ---------- NET INCOME (LOSS) FROM OPERATIONS (6,041 Limited Partnership units issued and outstanding) $ (1.00) $ (8.70) ---------- ---------- ---------- ----------
The accompanying notes are an integral part of these Financial Statements. 5 VENETIAN PARK ASSOCIATES, LTD. (A California Limited Partnership) STATEMENTS OF OPERATIONS (Unaudited)
NINE MONTHS NINE MONTHS ENDED ENDED September 30, September 30, 1999 1998 ------------ ------------ Operating Revenue: Rental Income $ 1,215,983 $ 1,147,058 Other Rental and Interest Income 47,570 47,765 ----------- ----------- TOTAL OPERATING REVENUE 1,263,553 1,194,823 Operating Expenses: Repair and Maintenance 209,583 147,624 Utilities 145,716 141,959 Managers Salaries 164,551 137,226 Management Fees 63,253 59,690 General and Administrative 146,941 135,478 Real Property Taxes and Insurance 101,646 99,580 Financial Expenses 326,495 330,497 Depreciation 208,758 207,132 Amortization 708 956 ----------- ----------- TOTAL OPERATING EXPENSES 1,367,651 1,260,142 NET INCOME (LOSS) FROM OPERATIONS $ (104,098) $ (65,319) =========== =========== NET INCOME (LOSS) PER UNIT (6041 Limited Partnership units issued and outstanding) $ (17.23) $ (10.81) =========== ===========
The accompanying notes are an integral part of these Financial Statements. 6 VENETIAN PARK ASSOCIATES, LTD. (A California Limited Partnership) STATEMENT OF PARTNER'S EQUITY (Unaudited)
NINE MONTHS ENDED September 30, 1999 ------------- Balance at January 1, 1999 $ 1,522,535 Net income (loss) (104,098) Cash Distributions 0 ----------- BALANCE AT SEPTEMBER 30, 1999 $ 1,418,437 ===========
The accompanying notes are an integral part of these Financial Statements. 7 VENETIAN PARK ASSOCIATES, LTD. (A California Limited Partnership) STATEMENTS OF CASH FLOWS (Unaudited)
NINE MONTHS NINE MONTHS ENDED ENDED September 30, September 30, 1999 1998 ------------- ------------- Cash flows from operating activities: Net Income/(Loss) $ (104,098) $ (65,319) ---------- --------- Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization 209,466 208,088 Change in assets - (increase) decrease: Tenants' rents receivable (970) (40,258) Insurance receivables 120,626 0 Tenants security deposits (2,258) 11,854 Prepaid expenses (18,556) (11,442) Restricted deposits and reserves (12,401) (37,354) Deposits (15,624) (10,067) Change in liabilities - increase (decrease): Accounts payable and accrued expenses (84,442) 24,836 Tenants prepaid rents 2,582 4,689 Tenants security deposit payable 6,947 (8,844) ---------- --------- Total adjustments 205,370 141,502 ---------- --------- Net cash flow provided by (used in) operating activities: 101,272 76,183 ---------- --------- Cash flow from financing activities: Principal reduction of long-term debt (100,288) (92,943) Capital distributions to partners 0 0 ---------- --------- Net cash used by financing activities (100,288) (92,943) ---------- --------- Net increase (decrease) in cash 985 (16,760) Cash at beginning of Period 38,050 51,337 ---------- --------- Cash at end of Period $ 39,035 $ 34,577 ---------- --------- ---------- --------- Supplemental disclosures of cash flow information: Cash paid during the year for: Interest expense $ 304,689 $ 310,187 State franchise tax $ 800 $ 800 The accompanying notes are an integral part of these Financial Statements. 8
Venetian Park Associates, Ltd. Notes to Financial Statements Six Months Ended September 30, 1999 1) BASIS OF PRESENTATION See the Form 10-K for the Year Ended December 31, 1998 for appropriate disclosure to the Financial Statements. The Financial Statements included in the 10-Q omit substantially all disclosures. 2) ADJUSTING ENTRIES All adjustments which are necessary for a fair presentation of the Financial Statements have been made to the Financial Statements presented. All such adjustments are of a normal recurring nature. Page 9 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. RESULTS OF OPERATIONS GENERAL Operating income this year through September 30th was $1,263,553 vs. $1,194,823 registered during the corresponding period last year, a jump of $68,730. As reported previously this year, we have spent substantial sums in labor and material to cure deferred maintenance and upgrade the Property for both purposes of obtaining a new loan and preparing the Property for sale. With intermediate goals achieved, three of the four employees hired for carport restoration, canal maintenance and exterior painting were laid-off in the third quarter. The success of the program was manifested in a vacancy factor of only 7.21% during September 1999 vs. an aggregate vacancy factor of 12.61% for the nine months ended September 30th. The scheduled monthly rent roll for September, 1999 was $161,390 vs. $154,477 at the same time last year, a jump of $6,913 or 4.48%. Rental losses (vacancies, net delinquencies and rental discounts) amounted to $211,769 this year vs. $222,934 last year through September 30th, a cut of $11,164. Operating expenses this year through September 30th were $1,367,651 vs $1,260,142 during the corresponding period last year, an increase of $107,509. We are pleased to report that the refinancing of the Property is moving along smoothly. We have opted for Reilly Mortgage's fixed rate Freddie Mac Program for a new mortgage of $6,300,000 bearing interest at somewhat less than 8% (based upon early October mortgage rates) amortized for 30 years, due in 10 years. The Washington Mutual variable rate loan was not available to the property. The Freddie Mac loan provides that should an eventual buyer of the Property prefer a higher mortgage, he can apply to Freddie Mac for additional funding at the same rate and terms as the existing loan for a standard loan fee. We expect the new loan to record sometime during mid November after which we'll proceed with roof replacements, exterior painting, repaving and other work as more fully described in previous correspondence. On September 30, 1999, Current Assets stood at $224,035 (including $99,490 in tenant refundable security deposits) vs. $321,893 at the same time last year. On September 30th of this year the Property's FHA replacement reserve account contained $172,241 which will be returned to the Partnership when the refinancing is complete and the old loan is retired. Page 10 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. LIQUIDITY AND CAPITAL RESOURCES The Partnership did not declare nor cash were distributed to the partners for the third quarter of September 30, 1999 until the Property generates a more substantial ongoing cash flow than that which now prevail. Page 11 PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS Not Applicable ITEM 2. CHANGES IN SECURITIES Not Applicable ITEM 3. DEFAULTS UPON SENIOR SECURITIES Not Applicable ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS Not Applicable ITEM 5. OTHER INFORMATION Not Applicable ITEM 6. EXHIBITS AND REPORTS OF FORM 8-K a) EXHIBITS Exhibits other than those listed have been omitted because they are nonexistent, inapplicable or because the required information is given in the Financial Statements or notes thereto. b) REPORTS ON FORM 8-K Not Applicable Page 12 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 in the City of Santa Monica of California. VENETIAN PARK ASSOCIATES, LTD. (A California Limited Partnership) Dated: October 29, 1999 /s/ Norman Jacobson ------------------------------------ Norman Jacobson General Partner Page 13 EX-27 2 EXHIBIT 27
5 9-MOS DEC-31-1999 JAN-01-1999 SEP-30-1999 380,158 0 118,969 0 0 499,127 11,071,027 4,676,605 6,893,549 380,548 5,094,564 0 0 0 1,418,437 6,893,549 0 1,263,553 0 0 831,690 0 535,961 (104,098) 0 0 0 0 0 (104,098) 0 0
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