-----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, A69jF4ljCpCVuC/GZdDtVHBgT1fvHndMp3OJQ9ipG0VI87FCtHGaVemQYEl1+D2h bC/0J0vRcqGrf8bhQRLprw== 0000950147-97-000264.txt : 19970501 0000950147-97-000264.hdr.sgml : 19970501 ACCESSION NUMBER: 0000950147-97-000264 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970430 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: 97590512 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: 97590513 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 March 31, 1997 --------------------------------------------- [ ] 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 MARCH 31, 1997 AND DECEMBER 31, 1996 (Unaudited)
March 31, December 31, 1997 1996 ------------ ------------ ASSETS ------ CASH AND CASH EQUIVALENTS $ 2,356,736 $ 2,346,371 RECEIVABLES FROM LESSEES 144,697 149,803 SECURED NOTES RECEIVABLE 123,920 131,323 PROPERTY SUBJECT TO OPERATING LEASES, at cost Land 6,773,272 6,773,272 Buildings 29,669,322 29,669,322 Equipment 626,781 626,781 ------------ ------------ Total 37,069,375 37,069,375 Less-Accumulated depreciation 11,266,994 10,937,860 ------------ ------------ 25,802,381 26,131,515 ------------ ------------ Total assets $ 28,427,734 $ 28,759,012 ============ ============ LIABILITIES AND PARTNERS' CAPITAL --------------------------------- DISTRIBUTION PAYABLE TO LIMITED PARTNERS $ 1,316,851 $ 1,321,426 PAYABLE TO GENERAL PARTNER 14,821 10,304 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 47,618 49,704 RENTAL DEPOSITS 114,400 114,400 ------------ ------------ Total liabilities 1,493,690 1,495,834 ------------ ------------ MINORITY INTEREST (Note 1) (15,252) (14,923) ------------ ------------ PARTNERS' CAPITAL (DEFICIT): General partner (161,347) (158,058) Limited partners 27,110,643 27,436,159 ------------ ------------ Total partners' capital 26,949,296 27,278,101 ------------ ------------ Total liabilities and partners' capital $ 28,427,734 $ 28,759,012 ============ ============
PARTICIPATING INCOME PROPERTIES 1986, L.P. AND AFFILIATE CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996 (Unaudited) 1997 1996 ---------- ---------- REVENUES: Rental $1,072,247 $1,078,631 Participating rentals 413,241 468,335 Interest and other 26,152 24,777 Gain on sale of property -- 16,410 ---------- ---------- 1,511,640 1,588,153 ---------- ---------- EXPENSES: General partner fees 131,523 136,780 Depreciation 329,134 414,632 Operating 48,777 50,400 ---------- ---------- 509,434 601,812 ---------- ---------- MINORITY INTEREST IN INCOME 1,168 1,164 ---------- ---------- NET INCOME $1,001,038 $ 985,177 ========== ========== NET INCOME ALLOCATED TO: General partner $ 10,010 $ 9,852 Limited partners 991,028 975,325 ---------- ---------- $1,001,038 $ 985,177 ========== ========== NET INCOME PER LIMITED PARTNERSHIP UNIT (based on 51,687 units held by limited partners) $ 19.17 $ 18.87 ========== ========== PARTICIPATING INCOME PROPERTIES 1986, L.P. AND AFFILIATE CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' CAPITAL FOR THE THREE MONTHS ENDED MARCH 31, 1997 (Unaudited)
Limited Partners General ---------------------------- Partner Number Total Amount of Units Amount Amount ------------ ------------ ------------ ------------ BALANCE, December 31, 1996 $ (158,058) 51,687 $ 27,436,159 $ 27,278,101 Net income 10,010 -- 991,028 1,001,038 Distribution to partners (13,299) -- (1,316,544) (1,329,843) ------------ ------------ ------------ ------------ BALANCE, March 3l, 1997 $ (161,347) 51,687 $ 27,110,643 $ 26,949,296 ============ ============ ============ ============
PARTICIPATING INCOME PROPERTIES 1986, L.P. AND AFFILIATE CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996 (Unaudited)
1997 1996 ----------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,001,038 $ 985,177 Adjustments to net income: Depreciation 329,134 414,632 Gain on sale of property -- (16,410) Minority interest in income 1,168 1,164 Change in assets and liabilities: Decrease (increase) in receivables from lessees 5,106 (20,023) Increase (decrease) in payable to general partner 4,517 (17,705) Decrease in accounts payable and accrued liabilities (2,086) (4,990) ----------- ----------- Net cash provided by operating activities 1,338,877 1,341,845 ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of property -- 430,192 Principal collections on secured notes receivable 7,403 6,702 ----------- ----------- Net cash provided by investing activities 7,403 436,894 ----------- ----------- CASH FLOWS FOR FINANCING ACTIVITIES: Partner distributions declared (1,329,843) (3,452,049) Decrease in distribution payable (4,575) -- Distribution to minority interest (1,497) (1,564) ----------- ----------- Net cash used in financing activities (1,335,915) (3,453,613) ----------- ----------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 10,365 (1,674,874) CASH AND CASH EQUIVALENTS, beginning of period 2,346,371 3,649,977 ----------- ----------- CASH AND CASH EQUIVALENTS, end of period $ 2,356,736 $ 1,975,103 =========== ===========
PART I - FINANCIAL INFORMATION Item 2. Management's Discussion and Analysis of - ------- Financial Condition and Results of Operations --------------------------------------------- As of March 31, 1997, 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 $1,316,544 for the quarter ended March 31, 1997 (the period). 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 portion of the land comprising 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 $413,241 for the period which is lower than the comparable quarter in 1996 by $55,094 and is attributable to decreased overall travel plaza sales. In June 1996, a credit card issuer to Flying J Travel Plaza customers terminated its relationship with the travel plazas. As a result, volumes and margins at many Flying J Travel Plaza locations decreased. CFJ Properties, the lessee of eight of the Registrant's travel plazas, has advised the general partner of the Registrant that it expects sales will stabilize and be restored by mid-1997. Total expenses decreased by $92,378 to $509,434 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 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 - MARCH 31, 1997 ------------------------------ 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: April 4, 1997 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: April 4, 1997 By /s/ John R. Barravecchia ------------------------------------------ John R. Barravecchia, President EX-27.1 2 FINANCIAL DATA SCHEDULE FOR 1ST QUARTER 10-Q
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET AS OF MARCH 31, 1997 AND THE STATEMENT OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000797977 PARTICIPATING INCOME PROPERTIES 1986, L.P. 1 U.S. DOLLARS 3-MOS DEC-31-1997 MAR-31-1997 1 2,356,736 0 268,617 0 0 0 37,069,375 11,266,994 28,427,734 0 0 0 0 0 26,949,296 28,427,734 0 1,511,640 0 509,434 0 0 0 1,001,038 0 1,001,038 0 0 0 1,001,038 19.17 0
EX-27.2 3 FINANCIAL DATA SCHEDULE FOR 1ST QUARTER 10-Q
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET AS OF MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH BALANCE SHEET. 0000797978 FFCA INVESTOR SERVICES CORPORATION 86-B 1 U.S. DOLLARS 3-MOS DEC-31-1997 MAR-31-1997 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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