-----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, Uz/JhQycmev9w5w2uEhzAb1865vxoBcGAzfaXyrNinOK1PjNpLU4QeJNNLWoC3ff PIc6uSjOVOLUpzZjCaQAig== 0000950147-96-000301.txt : 19960806 0000950147-96-000301.hdr.sgml : 19960806 ACCESSION NUMBER: 0000950147-96-000301 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960805 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PARTICIPATING INCOME PROPERTIES 1986 LP CENTRAL INDEX KEY: 0000797977 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF NONRESIDENTIAL BUILDINGS [6512] IRS NUMBER: 860570015 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-16720 FILM NUMBER: 96603458 BUSINESS ADDRESS: STREET 1: 17207 N PERIMETER DR STREET 2: THE PERIMETER CENTER CITY: SCOTTSDALE STATE: AZ ZIP: 85255 BUSINESS PHONE: 6025854500 MAIL ADDRESS: STREET 1: 17207 N PERIMETER DR CITY: SCOTTSDALE STATE: AZ ZIP: 85255-5402 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FFCA INVESTOR SERVICES CORP 86-B CENTRAL INDEX KEY: 0000797978 STANDARD INDUSTRIAL CLASSIFICATION: PATENT OWNERS & LESSORS [6794] IRS NUMBER: 860557949 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-16721 FILM NUMBER: 96603459 BUSINESS ADDRESS: STREET 1: 17207 N PERIMETER DR STREET 2: C/O FINANCIAL CTR CITY: SCOTTSDALE STATE: AZ ZIP: 85255 BUSINESS PHONE: 6025854500 MAIL ADDRESS: STREET 1: 17207 N PERIMETER DR CITY: SCOTTSDALE STATE: AZ ZIP: 85255-5402 10-Q 1 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (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 -------------------------------------------------- [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________________to______________________ Commission file number 0-16720 PARTICIPATING INCOME PROPERTIES 1986, L.P. and FFCA INVESTOR SERVICES CORPORATION 86-B - -------------------------------------------------------------------------------- (Exact Name of Co-Registrants as Specified in Their Organizational Documents) Delaware 86-0570015 - ------------------------------------------------------------------------------- (Partnership State of Organization) (Partnership I.R.S. Employer Identification Number) Delaware 86-0557949 - ------------------------------------------------------------------------------- (Corporation State of Incorporation) (Corporation I.R.S. Employer Identification Number) The Perimeter Center 17207 North Perimeter Drive Scottsdale, Arizona 85255 - ------------------------------------------------------------------------------- (Address of principal executive offices) (zip code) Co-Registrants' telephone number including area code (602) 585-4500 ---------------------- 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 --- --- PART 1 - FINANCIAL INFORMATION Item l. Financial Statements. ------- --------------------- PARTICIPATING INCOME PROPERTIES 1986, L.P. AND AFFILIATE CONSOLIDATED BALANCE SHEETS JUNE 30, 1996 AND DECEMBER 31, 1995 (Unaudited)
June 30, December 31, 1996 1995 ------- ----------- ASSETS ------ CASH AND CASH EQUIVALENTS $ 1,975,942 $ 3,649,977 RECEIVABLES FROM LESSEES 158,800 144,183 SECURED NOTES RECEIVABLE 145,589 157,911 PROPERTY SUBJECT TO OPERATING LEASES, at cost Land 6,773,272 7,021,917 Buildings 29,669,322 29,669,322 Equipment 3,666,781 3,969,303 ------------ ------------ Total 40,109,375 40,660,542 Less-Accumulated depreciation 12,926,831 12,233,701 ------------ ------------ 27,182,544 28,426,841 ------------ ------------ Total assets $ 29,462,875 $ 32,378,912 ============ ============ LIABILITIES AND PARTNERS' CAPITAL --------------------------------- DISTRIBUTION PAYABLE TO LIMITED PARTNERS $ 1,359,638 $ 3,438,656 PAYABLE TO GENERAL PARTNER - 17,705 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 54,630 61,088 RENTAL DEPOSITS 114,400 114,400 ------------ ------------ Total liabilities 1,528,668 3,631,849 ------------ ------------ MINORITY INTEREST (14,252) (13,436) ------------ ------------ PARTNERS' CAPITAL (DEFICIT): General partner (151,354) (143,234) Limited partners 28,099,813 28,903,733 ------------ ------------ Total partners' capital 27,948,459 28,760,499 ------------ ------------ Total liabilities and partners' capital $ 29,462,875 $ 32,378,912 ============ ============
PARTICIPATING INCOME PROPERTIES 1986, L.P. AND AFFILIATE CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1996 AND 1995 (Unaudited)
Three Months Three Months Six Months Six Months Ended Ended Ended Ended 6/30/96 6/30/95 6/30/96 6/30/95 ------- ------- ------- ------- REVENUES: Rental $1,072,247 $1,078,631 $2,150,878 $2,157,262 Participating rentals 458,003 471,521 926,338 922,873 Interest and other 22,556 42,701 47,333 85,163 Gain on sale of property - - 16,410 - ---------- ---------- ---------- ---------- 1,552,806 1,592,853 3,140,959 3,165,298 ---------- ---------- ---------- ---------- EXPENSES: General partner fees 135,786 139,557 272,566 275,872 Depreciation 414,633 481,971 829,265 963,943 Operating 42,525 40,656 92,925 96,942 ---------- ---------- ---------- ---------- 592,944 662,184 1,194,756 1,336,757 ---------- ---------- ---------- ---------- MINORITY INTEREST IN INCOME 1,133 1,078 2,297 2,139 ---------- ---------- ---------- ---------- NET INCOME $ 958,729 $ 929,591 $1,943,906 $1,826,402 ========== ========== ========== ========== NET INCOME ALLOCATED TO: General partner $ 9,587 $ 9,296 $ 19,439 $ 18,264 Limited partners 949,142 920,295 1,924,467 1,808,138 ---------- ---------- ---------- ---------- $ 958,729 $ 929,591 $1,943,906 $1,826,402 ========== ========== ========== ========== NET INCOME PER LIMITED PARTNERSHIP UNIT (based on 51,687 units outstanding) $18.36 $17.81 $37.23 $34.98 ====== ====== ====== ======
PARTICIPATING INCOME PROPERTIES 1986, L.P. AND AFFILIATE CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' CAPITAL FOR THE SIX MONTHS ENDED JUNE 30, 1996 (Unaudited)
Limited Partners General ----------------------- Partner Number Total Amount of Units Amount Amount ------ -------- ------ ------ BALANCE, December 31, 1995 $(143,234) 51,687 $28,903,733 $28,760,499 Net income 19,439 - 1,924,467 1,943,906 Distributions to partners (27,559) - (2,728,387) (2,755,946) --------- ------ ----------- ----------- BALANCE, June 30, 1996 $(151,354) 51,687 $28,099,813 $27,948,459 ========== ====== =========== ===========
PARTICIPATING INCOME PROPERTIES 1986, L.P. AND AFFILIATE CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995 (Unaudited)
1996 1995 --------------- ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,943,906 $ 1,826,402 Adjustments to net income: Depreciation 829,265 963,943 Gain on sale of property (16,410) - Minority interest in income 2,297 2,139 Change in assets and liabilities: Increase in receivables from lessees (14,617) - Decrease in payable to general partner (17,705) - Decrease in accounts payable and accrued liabilities (6,458) (45,602) ----------- ----------- Net cash provided by operating activities 2,720,278 2,746,882 ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Principal collections on secured notes receivable 13,572 2,999 Proceeds from sale of property 430,192 - ----------- ----------- Net cash provided by investing activities 443,764 2,999 ----------- ----------- CASH FLOWS FOR FINANCING ACTIVITIES: Distributions to partners (4,834,964) (2,758,516) Distributions to minority interest (3,113) (3,103) ----------- ----------- Net cash used in financing activities (4,838,077) (2,761,619) ----------- ----------- NET DECREASE IN CASH AND CASH EQUIVALENTS (1,674,035) (11,738) CASH AND CASH EQUIVALENTS, beginning of period 3,649,977 3,433,132 ----------- ----------- CASH AND CASH EQUIVALENTS, end of period $ 1,975,942 $ 3,421,394 =========== ===========
PART I - FINANCIAL INFORMATION - -------------------------------- Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations --------------------------------------------- As of June 30, 1996, Participating Income Properties 1986, L.P., a Delaware limited partnership, (the Registrant), had received $51,687,000 in gross proceeds from its offering of Units. Net funds available for investment, after payment of sales commissions, organization costs and acquisition fees, amounted to $45,232,790. The offering of Units is the Registrant's sole source of capital, and since the final closing of limited partnership units was held on April 16, 1987, the Registrant will not receive additional funds from the offering. The Registrant was fully invested in eleven travel plaza properties by September 1988 and does not anticipate any further capital expenditures. The Registrant declared a cash distribution to the limited partners of $1,359,216 for the quarter ended June 30, 1996 (the period), which, combined with the first quarter distribution of $1,369,171 amounts to $2,728,387 year to date. During the period, all net proceeds not invested in real estate were invested in Government Agency discount notes and bank repurchase agreements (which are secured by United States Treasury and Government obligations). During the period, base rental revenue from the travel plaza leases amounted to $1,072,247 as compared to $1,078,631 for the same period of the prior year. In the first quarter of 1996, the Registrant sold a piece of land on the Boise, Idaho travel plaza property, resulting in a monthly reduction of $2,128 in rental revenue. The Registrant received or accrued participating rentals of $458,003 for the quarter ended June 30, 1996 as compared to $471,521 for the same quarter of 1995. The $13,518 decrease in participating rental revenue was due to an overall decrease in travel plaza sales during the period. Total expenses decreased by $69,240 to $592,944 for the period primarily due to a decrease in depreciation expense related to the sale of travel plaza equipment in the last twelve months. The decrease in total assets reflected in the Registrant's financial statements filed with this Report is mainly attributable to the return of capital to the limited partners from the sale of the Boise travel plaza lodging facility and the depreciation allowance, which is deducted for accounting purposes from the cost of the assets on the Registrant's books. In the opinion of management, the financial information included in this report reflects all adjustments necessary for fair presentation. All such adjustments are of a normal recurring nature. FFCA INVESTOR SERVICES CORPORATION 86-B --------------------------------------- BALANCE SHEET - JUNE 30, 1996 ----------------------------- ASSETS Cash $100 Investment in Participating Income Properties 1986, L.P., at cost 100 ---- Total Assets $200 ==== LIABILITY Payable to Parent $100 STOCKHOLDER'S EQUITY Common Stock; $l par value; 100 shares authorized, issued and outstanding 100 ---- Liability and Stockholder's Equity $200 ==== Note: FFCA Investor Services Corporation 86-B (86-B) was organized on June 23, 1986 to act as the assignor limited partner in Participating Income Properties 1986, L.P. (PIP-86). The assignor limited partner is the owner of record of the limited partnership units of PIP-86. All rights and powers of 86-B have been assigned to the holders, who are the registered and beneficial owners of the units. Other than to serve as assignor limited partner, 86-B has no other business purpose and will not engage in any other activity or incur any debt. SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized. PARTICIPATING INCOME PROPERTIES 1986, L.P. By FFCA MANAGEMENT COMPANY, L.P. General Partner By PERIMETER CENTER MANAGEMENT COMPANY Corporate General Partner Date: July 8, 1996 By /s/ John R. Barravecchia ----------------------------------------------- John R. Barravecchia, Chief Financial Officer SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the co-registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. FFCA INVESTOR SERVICES CORPORATION 86-B Date: July 8, 1996 By /s/ John R. Barravecchia ----------------------------------------------- John R. Barravecchia, President EX-27 2 FINANCIAL DATA SCHEDULE FOR 2ND QUARTER 10-Q
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET AS OF JUNE 30, 1996 AND THE STATEMENT OF INCOME FOR THE SIX MONTHS ENDED JUNE 30,1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000797977 PARTICIPATING INCOME PROPERTIES 1986, L.P. 1 U.S. DOLLARS 6-MOS DEC-31-1996 JUN-30-1996 1 1,975,942 0 304,389 0 0 0 40,109,375 12,926,831 29,462,875 0 0 0 0 0 27,948,459 29,462,875 0 3,140,959 0 1,194,756 0 0 0 1,943,906 0 1,943,906 0 0 0 1,943,906 37.23 0
EX-27 3 FINANCIAL DATA SCHEDULE FOR 2ND QUARTER 10-Q
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET AS OF JUNE 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH BALANCE SHEET. 0000797978 FFCA INVESTOR SERVICES CORPORATION 86-B 1 U.S. DOLLARS 6-MOS DEC-31-1996 JUN-30-1996 1 100 0 0 0 0 0 0 0 200 0 0 0 0 100 0 200 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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