-----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, KMsPrX3I86TMHpYgd+cPeEtlAsNdFiZSCSGmvZpdoArJSvBYH9TCrYkU2GRTqSGy e6gcKH+S3IJ5i0jHLL/pJg== 0000950147-98-000345.txt : 19980511 0000950147-98-000345.hdr.sgml : 19980511 ACCESSION NUMBER: 0000950147-98-000345 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980508 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ARMORED STORAGE INCOME INVESTORS LTD PARTNERSHIP CENTRAL INDEX KEY: 0000760719 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF NONRESIDENTIAL BUILDINGS [6512] IRS NUMBER: 860503193 STATE OF INCORPORATION: AZ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 002-95034 FILM NUMBER: 98613099 BUSINESS ADDRESS: STREET 1: 3839 N 3RD STREET 2: STE 108 CITY: PHOENIX STATE: AZ ZIP: 85012 BUSINESS PHONE: 6022301655 MAIL ADDRESS: STREET 1: 3839 N 3RD ST STREET 2: STE 108 CITY: PHOENIX STATE: AZ ZIP: 85012 10-Q 1 QUARTERLY REPORT 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 For Quarter Ended: Commission File Number: March 31, 1998 2-95034LA - ------------------ ----------------------- ARMORED STORAGE INCOME INVESTORS LIMITED PARTNERSHIP ---------------------------------------------------- (Exact name of Registrant as specified in its charter) Arizona 85-0503193 - ------------------------------- --------------------------------- (State or other jurisdiction of (IRS Employer Identification No.) incorporation or organization) 3839 North 3rd Street, Suite 108 Phoenix, Arizona 85012 -------------------------------------------------------- (Address of and zip code of principal executive offices) (602) 230-1655 ---------------------------------------------------- (Registrant's telephone number, including area code) 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 ----- ----- ARMORED STORAGE INCOME INVESTORS LIMITED PARTNERSHIP an Arizona Limited Partnership PART I FINANCIAL INFORMATION --------------------- ITEM 1 FINANCIAL STATEMENTS PAGE - ---------------------------- ---- Balance Sheets 3 Statements of Operations 4 Statements of Cash Flows 5 Notes to Unaudited Financial Statements 6 ARMORED STORAGE INCOME INVESTORS LIMITED PARTNERSHIP an Arizona Limited Partnership BALANCE SHEETS (Unaudited) March 31, December 31, 1998 1997 ----------- ----------- ASSETS Property Land $ 1,139,828 $ 1,139,828 Buildings 5,856,762 5,856,762 Furniture and fixtures 77,515 74,576 ----------- ----------- 7,074,105 7,071,166 Less accumulated depreciation (2,293,891) (2,244,891) ----------- ----------- 4,780,214 4,826,275 Cash and cash equivalents 605,477 490,961 Other assets 18,165 18,165 ----------- ----------- $ 5,403,856 $ 5,335,401 =========== =========== LIABILITIES AND PARTNERS' CAPITAL Accounts payable $ 71,735 $ 92,405 Commitments (Note 3) Partners' capital General partner 71,227 66,771 Limited partners 5,260,894 5,176,225 ----------- ----------- $ 5,403,856 $ 5,335,401 =========== =========== See notes to financial statements. ARMORED STORAGE INCOME INVESTORS LIMITED PARTNERSHIP an Arizona Limited Partnership STATEMENTS OF OPERATIONS (unaudited)
For the Three Months For the Years Ended Ended ------------------------------- ------------------------------ March 31, 1998 March 31, 1997 Dec. 31, 1997 Dec. 31, 1996 -------------- -------------- ------------- ------------- Income Rental $ 283,693 $ 275,574 $1,105,613 $1,118,273 Interest 5,170 2,324 18,426 7,084 ---------- ---------- ---------- ---------- 288,863 277,898 1,124,039 1,125,211 ---------- ---------- ---------- ---------- Expenses Property Operations 110,697 113,408 436,207 393,958 Administration 40,041 23,320 96,005 84,114 Amortization & Depreciation 49,000 49,000 195,224 196,585 ---------- ---------- ---------- ---------- 199,738 185,728 727,436 674,657 ---------- ---------- ---------- ---------- Net Income $ 89,125 $ 92,170 $ 396,603 $ 450,554 ========== ========== ========== ==========
See notes to financial statements. ARMORED STORAGE INCOME INVESTORS LIMITED PARTNERSHIP an Arizona Limited Partnership STATEMENTS OF CASH FLOWS (unaudited) For the three months ended ------------------------------- March 31, 1998 March 31, 1997 -------------- -------------- CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers $ 283,693 $ 275,574 Cash paid to suppliers (171,408) (142,635) Interest received 5,170 2,324 --------- --------- Net cash provided by (used in) operating activities $ 117,455 $ 135,263 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES Purchase of furniture and fixtures (2,939) -- --------- --------- Net cash provided by (used in) Investing activities $ (2,939) $ -- --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES Distributions to partners -- -- --------- --------- Net cash used in financing activities -- -- --------- --------- Increase (decrease) in cash $ 114,516 $ 135,263 Cash and cash equivalents: Beginning 490,961 426,865 --------- --------- Ending $ 605,477 $ 562,128 --------- --------- RECONCILIATION OF NET LOSS TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Net income (loss) $ 89,125 $ 92,170 Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 49,000 49,000 Increase (decrease) in accounts payable (20,670) (5,907) --------- --------- Net cash provided by (used in) operating activities $ 117,455 $ 135,263 ========= ========= See notes to financial statements. ARMORED STORAGE INCOME INVESTORS LIMITED PARTNERSHIP an Arizona Limited Partnership NOTES TO UNAUDITED FINANCIAL STATEMENTS March 31, 1998 NOTE 1. Partnership Organization Armored Storage Income Investors Limited Partnership ("the Partnership") was organized under the laws of the State of Arizona pursuant to an agreement of limited partnership filed December 4, 1984, for the purpose of acquiring, developing, owning and operating self-service storage facilities. The initial General Partners were Armored Storage, Inc., an Arizona corporation (the "Managing General Partner") and Armored Storage One Limited Partnership, an Arizona Limited Partnership. The Partnership commenced full activity on January 9, 1985. During 1986, the Partnership completed an offering of limited partnership units wherein 15,000 limited partnership units were purchased by investors for $7,500,000. In December 1987 Armored Storage, Inc., withdrew and Armored Storage One Limited Partnership, became the "Managing General Partner." NOTE 2. Summary of Significant Accounting Policies Property and equipment: Property and equipment is stated at cost. Depreciation is computed principally by the straight-line method over the following estimated useful lives: Years ----- Buildings 30 Furniture and fixtures 5 Interest, real estate taxes and other costs related directly to properties under long-term development contracts were capitalized. Costs were not capitalized beyond net realizable value. Costs related to operating properties are expensed as incurred. Acquisition fees are allocated to the Partnership's property based on the expected total capitalized cost of the respective property. Development fees are allocated to the Partnership's property based on the expected total capitalized cost of the respective property. Loan acquisition costs: Loan acquisition costs which are included in other assets are amortized over the life of the note payable of 9 years. Rental income: The Partnership receives rental income from its self-storage facilities. All rental agreements are for month-to-month tenancy. Rental income is recognized on the accrual basis in accordance with generally accepted accounting principles. ARMORED STORAGE INCOME INVESTORS LIMITED PARTNERSHIP an Arizona Limited Partnership NOTES TO UNAUDITED FINANCIAL STATEMENTS March 31, 1998 NOTE 2. Summary of Significant Accounting Policies, continued Income taxes: The Partnership does not record a provision for income taxes, since Federal and state income tax regulations provide that any taxes on income of a Partnership are payable by the partners as individuals. The Partnership's tax returns are prepared on the accrual basis. Syndication fees: Syndication fees are those expenses incurred in the issuing and marketing of partnership interests. These expenses include broker and registration fees, legal fees, tax and accounting fees, and printing costs. These fees are not amortizable and are presented as a reduction in partners' capital in the financial statements. Organization costs: Organization costs which are included in other assets consist of legal fees incident to the creation of the Partnership, accounting fees for establishing an accounting system and filing fees. These costs are being amortized using the straight-line method over 60 months. Cash and cash equivalents: For purposes of reporting cash flows, the Partnership considers all money market funds to be cash equivalents. Unaudited financial statements: The financial statement for the three months ended March 31, 1998 are unaudited, however, in management's opinion they include all adjustments necessarily for a fair statement of the results of operations for such interim period. The interim period results of operations are not necessarily indicative of results for a full year. NOTE 3. Commitments The Partnership has the following commitments: The Partnership entered into agreements with Armored Management, LLC, on January 1, 1998, to manage the Partnership's self-storage facilities. The term of the agreements are for one year and shall be renewed from year to year unless, and until, either party terminates the agreements. The agreements provide that the manager shall receive, as compensation for services, 6% of the actual gross cash receipts. ARMORED STORAGE INCOME INVESTORS LIMITED PARTNERSHIP an Arizona Limited Partnership NOTES TO UNAUDITED FINANCIAL STATEMENTS March 31, 1998 NOTE 3 Commitments, continued The Partnership also entered into an agreement with Armored Management, LLC for the management of the Partnership's accounting, securities reporting, database and investor relations activities. The term of the agreement is for one year and shall be renewed from year to year unless either party terminates the agreement. The agreement provides for a flat fee of $5,000 per month as compensation for administration services. The Partnership reimburses the General Partner for the costs of goods and materials used by and for the Partnership and administrative services necessary to the operation of the Partnership. ARMORED STORAGE INCOME INVESTORS LIMITED PARTNERSHIP an Arizona Limited Partnership NOTES TO UNAUDITED FINANCIAL STATEMENTS March 31, 1998 ITEM 2 MANAGEMENT'S DISCUSSIONS AND ANALYSIS - ---------------------------------------------- Results of Operations The Partnership has three operating facilities, two located in Phoenix, Arizona, and one in Albuquerque, New Mexico. The Partnership's three facilities generated an aggregate gross operating revenue of $283,693 during the first three months of 1998 compared to $275,574 during the first three months of 1997. Rental income decreased at Bell Road but increased at the other two facilities compared to the prior period. Occupancies (based on number of available units) at the three facilities are summarized as follows: March 31, 1998 March 31, 1997 -------------- -------------- Bell Road 86% 87% 63rd Avenue 75% 70% Tramway 76% 78% Operational expenses through March 31, 1998 were $110,697 compared to $113,408 for 1997. Administrative expenses for 19987 were $40,041 compared to $23,320 for the corresponding period in 1997. The variances in administrative expenses are primarily timing differences. Liquidity and Capital Resources As of March 31, 1998, the Partnership held cash and cash equivalents totaling $605,477 as compared to $562,128 for the corresponding quarter of 1997. ARMORED STORAGE INCOME INVESTORS LIMITED PARTNERSHIP an Arizona Limited Partnership 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. 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. ARMORED STORAGE INCOME INVESTORS (Registrant) By: Armored Management L.L.C. Its General Partner By: /s/ Dale D. Ulrich ------------------------------ Dale D. Ulrich Its: Member Dated: 5/7/98 ---------------------------- EX-27 2 FINANCIAL DATA SCHEDULE
5 Armored Storage Income Investors Limited Partnership Appendix A to Item 601(c) of Regulation S-K Commercial and Industrial Companies Article 5 of Regulation S-X 3 Months Ended March 31, 1998 1 U.S. Dollar 3-MOS DEC-31-1998 JAN-01-1998 MAR-31-1998 1 605,477 0 36,000 18,000 0 587,312 7,074,105 2,293,891 5,403,856 71,735 0 0 0 0 5,332,121 5,403,856 0 288,863 0 159,697 40,041 0 0 89,125 0 89,125 0 0 0 89,125 5.64 5.64
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