-----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, JPwMtTe2NwoTq2nDovPJlVJC12LzxffavcBDqX9r9lnSQhlUb7miKV1WjxxEhiXI eOq/8KytzEXztcQZo9LVqA== 0001021408-01-511391.txt : 20020413 0001021408-01-511391.hdr.sgml : 20020413 ACCESSION NUMBER: 0001021408-01-511391 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010331 FILED AS OF DATE: 20011214 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TOWER PARK MARINA INVESTORS LP CENTRAL INDEX KEY: 0000831491 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF NONRESIDENTIAL BUILDINGS [6512] IRS NUMBER: 954137996 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-17672 FILM NUMBER: 1813858 BUSINESS ADDRESS: STREET 1: 16633 VENTURA BLVD STREET 2: SIXTH FLOOR CITY: ENCINO STATE: CA ZIP: 91436 BUSINESS PHONE: 8189070400 MAIL ADDRESS: STREET 1: 16633 VENTURA BLVD STREET 2: SIXTH FLOOR CITY: ENCINO STATE: CA ZIP: 91436 FORMER COMPANY: FORMER CONFORMED NAME: PS MARINA INVESTORS I DATE OF NAME CHANGE: 19950614 10-Q 1 d10q.txt FORM 10-Q 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 - ----------------- --------------- March 31, 2001 Number 0-17672 TOWER PARK MARINA INVESTORS, L.P., a California Limited Partnership -------------------------------- (Exact name of registrant as specified in its charter) California 95-4137996 - ------------------------------- ------------------- (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 16633 Ventura Boulevard, 6/th/ Floor, Encino, California 91436 --------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's phone number, including area code: (818) 907-0400 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 than the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. X ---------- __________ Yes No INDEX ----- PART I. FINANCIAL INFORMATION PAGE REFERENCE Consolidated Balance Sheets at March 31, 2001 and December 31, 2000 2 Consolidated Statements of Operations for the three month periods ended March 31, 2001 and 2000 3 Consolidated Statements of Cash Flows for the three month periods ended March 31, 2001 and 2000 5 Notes to Consolidated Financial Statements 6-17 Management's Discussion and Analysis of Financial Condition and Results of Operations 18 PART II OTHER INFORMATION 19 TOWER PARK MARINA INVESTORS, L.P. a California Limited Partnership CONSOLIDATED BALANCE SHEETS
March 31 December 31 2001 2000 ------------ ------------ (Unaudited) ASSETS - ------ Cash $ 50,000 $ 70,000 Reserve fund 241,000 233,000 Accounts receivable 138,000 112,000 Tower Park Marina, net (Note 2) 2,645,000 2,642,000 Water and sewer facilities, net (Note 3) 99,000 101,000 Other assets, net (Note 4) 371,000 391,000 ------------ ------------ $ 3,544,000 $ 3,549,000 ============ ============ LIABILITIES AND PARTNERS' DEFICIT - --------------------------------- Accounts payable and accrued expenses $ 231,000 $ 221,000 Interest payable 16,000 16,000 Payable to affiliates 3,990,000 3,780,000 Deferred rentals 113,000 111,000 Notes payable (Note 5) 2,045,000 2,056,000 Commitments and contingencies - - ------------ ------------ 6,395,000 6,184,000 Minority partners' interest 181,000 184,000 Partners' deficit: Limited partners' deficit, $50,000 per unit, 4,508 units authorized issued and outstanding (2,141,000) (1,930,000) Less deferred contributions (76,000) (76,000) ------------ ------------ (2,217,000) (2,006,000) General partners' deficit (815,000) (813,000) ------------ ------------ Total partners' deficit (3,032,000) (2,819,000) ------------ ------------ $ 3,544,000 $ 3,549,000 ============ ============
See accompanying notes. -2- TOWER PARK MARINA INVESTORS, L.P. a California Limited Partnership CONSOLIDATED STATEMENTS OF OPERATIONS For the three month periods ended March 31, 2001 and 2000 (Unaudited)
2001 2000 ------------ ------------ Revenues: Slip rentals $ 168,000 $ 161,000 RV parking 163,000 133,000 Retail store 49,000 38,000 Fuel service 27,000 22,000 Water and sewer 37,000 38,000 Lease 38,000 38,000 Other income 27,000 21,000 ------------ ------------ 509,000 451,000 ------------ ------------ Expenses: Slip rentals 14,000 13,000 RV parking 29,000 18,000 Retail store 51,000 37,000 Fuel service 30,000 24,000 Water and sewer 45,000 41,000 Cost of operations 319,000 283,000 Interest expense 139,000 130,000 Depreciation and amortization 57,000 46,000 Management fees (Note 6) 25,000 25,000 Minority partners' interest (3,000) (1,000) ------------ ------------ 706,000 616,000 ------------ ------------ Loss from continuing operations $ (197,000) $ (165,000) Loss from discontinued operations (16,000) (17,000) ------------ ------------ Net loss $ (213,000) $ (182,000) ============ ============ Allocation of net loss: Limited Partners' $ (211,000) $ (180,000) General Partners' (2,000) (2,000) ------------ ------------ $ (213,000) $ (182,000) ============ ============
(continued next page) See accompanying notes. -3- TOWER PARK MARINA INVESTORS, L.P. a California Limited Partnership CONSOLIDATED STATEMENTS OF OPERATIONS For the three month periods ended March 31, 2001 and 2000 (Unaudited) 2001 2000 --------- ---------- Limited Partners' net loss per unit: Loss from continuing operations $ (43.26) $ (36.38) Loss from discontinued operations ( 3.55) ( 3.55) ------------- ----------- Net loss $ (46.81) $ (39.93) ============ =========== See accompanying notes. -4- TOWER PARK MARINA INVESTORS, L.P. a California Limited Partnership CONSOLIDATED STATEMENTS OF CASH FLOWS For the three month periods ended March 31, 2001 and 2000 (Unaudited)
2001 2000 ---------- ------------- Cash flows from operating activities: Net loss $(213,000) $ (182,000) Adjustments to reconcile net loss to net cash used for operating activities: Depreciation and amortization 57,000 48,000 Minority partners' interest (3,000) (1,000) Increase in accounts receivable (26,000) (7,000) Decrease (increase) in other assets 13,000 (48,000) Increase in accounts payable and accrued expenses 10,000 103,000 Increase (decrease) in deferred rentals 2,000 (22,000) --------- ------------ Cash flow used for operating activities (160,000) (109,000) --------- ------------ Cash flow from investing activities: Improvements to marina facilities (51,000) (12,000) Improvements to water and sewer facilities - - Increase in reserve fund (8,000) (8,000) --------- ------------ Cash flow used for investing activities (59,000) (20,000) --------- ------------ Cash flows from financing activities: Increase in capitalized financing costs - (35,000) Repayments of notes payable (11,000) (11,000) Advances from affiliates, net 210,000 186,000 --------- ------------ Net cash provided by financing activities 199,000 140,000 --------- ------------ Net (decrease) increase in cash (20,000) 11,000 Cash at the beginning of period 70,000 80,000 --------- ------------ Cash at the end of period $ 50,000 $ 91,000 ========= ============
See accompanying notes. -5- TOWER PARK MARINA INVESTORS, L.P. a California Limited Partnership NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FEDERAL INCOME TAX BASIS March 31, 2001 (Unaudited) 1. Summary of Significant Accounting Policies and Partnership Matters ------------------------------------------------------------------ Description of the Partnership ------------------------------ Tower Park Marina Investors L.P., (formerly PS Marina Investors I),a California Limited Partnership (the "Partnership"), was organized under the California Revised Limited Partnership Act, pursuant to a Certificate of Limited Partnership filed on January 6, 1988 to acquire, own, and operate and to a lesser extent, develop marina facilities. The General Partners in the Partnership are Westrec Investors, Inc., a wholly-owned subsidiary of Westrec Properties, Inc. ("Westrec"), and B. Wayne Hughes, a shareholder of Westrec until September 1990. Effective March 1, 1997, the limited partners approved the substitution of Tower Park Marina Operating Corporation, a wholly owned subsidiary of Westrec Financial, Inc., for Mr. Hughes. The Partnership was formed to sell a maximum of 12,000 units of limited partnership interest at $5,000 per unit ($60,000,000). The General Partners have contributed a total of $1,000. On November 27, 1989, the Partnership's offering was terminated with 4,508 units issued resulting in $22,540,000 of limited partner funds being raised (before commission discount of $3,000 granted to an investor). Half of each Limited Partner's total capital contribution was deferred. The final installment was due on August 1, 1990 and $76,000 of such deferrals remain outstanding. Principles of Consolidation --------------------------- The accompanying consolidated financial statements include the accounts of Tower Park Marina Investors, L.P. and its majority-owned subsidiary, Little Potato Slough Mutual Water Company ("LPSMWC"). All significant inter-company transactions and balances have been eliminated in the consolidation. Certain reclassifications of prior year amounts have been made to conform to the presentation adopted for 2001. Tower Park Marina Investors, L.P. was organized on January 6, 1988 and elected a December 31 year end for tax reporting and financial reporting purposes. Little Potato Slough Mutual Water Company (the "Subsidiary") was organized on March 8, 1982 and elected a February 28 year end for tax reporting and financial reporting purposes. The Company acquired a majority interest in Little Potato Slough Mutual Water Company. The Subsidiary's February 28 financial statements are consolidated with the December 31 financial statements of the Company since the difference in reporting periods is not more than 93 days. There are no intervening events which may materially affect the financial position or results of operations. -6- TOWER PARK MARINA INVESTORS, L.P. a California Limited Partnership NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2001 (Unaudited) 1. Summary of Significant Accounting Policies and Partnership Matters ------------------------------------------------------------------ (continued) --------- Reserve Fund ------------ The bylaws of LPSMWC require a reserve fund to be established for the replacement of its existing facilities and any expansion. This reserve is funded by monthly water and sewer charges assessed to all the shareholders. At March 31, 2001 the reserve fund balance was $ 241,000. Use of Estimates ---------------- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. Revenue Recognition ------------------- Revenue from slip rentals and RV Parking are recognized over the length of the contract term. Restaurant, retail and fuel service revenues are recognized at point of sale. In 2000, the Partnership adopted the Securities and Exchange Commission's Staff Accounting Bulletin (SAB) No. 101, which establishes guidelines for applying generally accepted accounting principles to revenue recognition in financial statements. The adoption of SAB No. 101 did not affect the results of operations or financial position of the Partnership. Net Realizable Value Reserve ---------------------------- As of March 31, 2001 the Partnership owns Tower Park Marina. A net realizable value reserve of $2,193,000 was established at December 31, 1995 to reduce the carrying value of Tower Park Marina to its then estimated net realizable value. No addition to this reserve has been considered necessary since the Partnership has determined that, based on current cash flows, estimated future cash flows will be sufficient to recover the carrying value of the marina. The reserve represents an aggregate cost adjustment to individual assets in compliance with SFAS 121 and no restoration of this previously recognized reserve is permitted in accordance with paragraph 11 of this guidance. -7- TOWER PARK MARINA INVESTORS, L.P. a California Limited Partnership NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2001 (Unaudited) 1. Summary of Significant Accounting Policies and Partnership Matters ------------------------------------------------------------------ (continued) ---------- Offering and Organization Costs ------------------------------- Costs incurred in preparing Partnership documents, prospectuses and any other sales literature, costs incurred in qualifying the units for sale under federal and state securities laws and costs incurred in marketing the units have been charged to the limited partners' equity to the extent the total does not exceed 5% of the gross proceeds of the offering. The amount by which these organization and registration costs exceeded 5% of the gross proceeds of the offering were borne by Westrec Investors, Inc. Cash Distributions ------------------ The General Partners have an interest in Cash Flow from Operations (as defined) and Cash from Sales or Refinancings (as defined). No distributions have been made since 1991. Allocations of Net Income or Loss --------------------------------- As set forth in the Partnership Agreement, net loss shall be allocated 99% to the Limited Partners and 1% to the General Partners. Net income shall generally be allocated to Partners in proportion to their cash distributions. Earnings Per Unit ----------------- Per unit data is based on the weighted average number of the Limited Partnership units outstanding during the period; 4,508. Tower Park Marina ----------------- Tower Park Marina is stated at cost to the Partnership less net realizable value reserve. Depreciation is calculated on a straight-line basis. Depreciable lives for the major asset categories are as follows: Asset Category Depreciable Life -------------- ---------------- Buildings 20 years Improvements 20 years Floating docks 7 years Furniture, fixtures and equipment 7 years Leasehold interest life of lease -8- TOWER PARK MARINA INVESTORS, L.P. a California Limited Partnership NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2001 (Unaudited) 1. Summary of Significant Accounting Policies and Partnership Matters ------------------------------------------------------------------ (continued) ----------- Taxes Based on Income --------------------- Taxes based on income are the responsibility of the individual partners and accordingly, are not reflected in the accompanying financial statements. Segment Reporting ----------------- Effective January 1, 1998, the Partnership adopted the Financial Accounting Standards Board's Statement of Financial Accounting Standards ("SFAS") No. 131 "Disclosures about Segments of an Enterprise and Related Information". SFAS No. 131 establishes standards for the way public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports and requires restatement of prior year information. Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision makers in assessing performance. SFAS No. 131 also establishes standards for related disclosures about products and services, geographic areas, and major customers. The adoption of SFAS No. 131 did not affect the results of operations or financial position but did affect the disclosure of segment information, as presented in Note 9. -9- TOWER PARK MARINA INVESTORS, L.P. a California Limited Partnership NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2001 (Unaudited) 2. Tower Park Marina ----------------- Tower Park Marina, located in the Sacramento - San Joaquin Delta near Sacramento, California, includes the purchase price of the property and related acquisition and closing costs. The Partnership pays an acquisition fee of 6% of the contract purchase price of the marina facility, plus a development fee of 6% of the cost of improvements made. Capitalized as a cost of Tower Park Marina were development fees paid to Westrec of $3,000 and $16,000 for the three months ended March 31, 2001 and the for the year ended December 31, 2000, respectively. At March 31, 2001 and December 31, 2000 Tower Park Marina comprised the following: 2001 2000 ------------- ------------- Land $ 1,040,000 $ 1,040,000 Buildings 2,125,000 2,125,000 Improvements 2,237,000 2,237,000 Floating docks 3,048,000 3,048,000 Furniture, fixtures and equipment 1,252,000 1,252,000 Leasehold interest 941,000 941,000 Construction in progress 51,000 - ------------- ------------- 10,694,000 10,643,000 Less accumulated depreciation and amortization (5,856,000) (5,808,000) ------------- ------------- 4,838,000 4,835,000 Net realizable value reserve (2,193,000) (2,193,000) ------------- ------------- $ 2,645,000 $ 2,642,000 ============= ============= The Partnership's marina is not generating satisfactory levels of cash flows and cash flow projections do not indicate significant improvement in the near term. These matters raise substantial doubt about the Partnership's ability to recover the carrying value of its assets, (not withstanding the write-down of the marina facility to its net realizable value) and to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Partnership to continue as a going concern. -10- TOWER PARK MARINA INVESTORS, L.P. a California Limited Partnership NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2001 (Unaudited) 3. Water and sewer facilities -------------------------- Water and sewer facilities at March 31, 2001 and December 31, 2000 are comprised of the following: 2001 2000 ----------- ----------- Water and sewer equipment $ 169,000 $ 169,000 Less accumulated depreciation (70,000) (68,000) ----------- ----------- $ 99,000 $ 101,000 =========== =========== 4. Other Assets ------------ Other assets at March 31, 2001 and December 31, 2000 are composed of the following: 2001 2000 ----------- ----------- Inventory $ 188,000 $ 207,000 Capitalized financing costs 152,000 152,000 Other 81,000 75,000 ----------- ----------- 421,000 434,000 Accumulated amortization (50,000) (43,000) ----------- ----------- $ 371,000 $ 391,000 =========== =========== Capitalized financing costs were incurred during 1999 in connection with the refinancing of Tower Park Marina. These costs are amortized over the loan term, five years. Inventory is stated at the lower of cost (average cost method) or market (replacement or net realizable value). -11- TOWER PARK MARINA INVESTORS, L.P. a California Limited Partnership NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2001 (Unaudited) 5. Notes Payable ------------- Notes payable at March 31, 2001 and December 31, 2000 consist of the following: 2001 2000 ------------ ------------ Note payable secured by a deed of trust on Tower Park Marina $ 2,039,000 $ 2,048,000 Other 6,000 8,000 ------------ ------------ $ 2,045,000 $ 2,056,000 ============ ============ At March 31, 2001 future principal payments are as follows: Year ---- 2001 $ 37,000 2002 50,000 2003 52,000 2004 1,906,000 ----------- $ 2,045,000 =========== The note payable secured by Tower Park Marina was for an initial amount of $2,000,000, with an additional $500,000 available to make improvements to the property. As of December 31, 2000, $100,000 had been borrowed for capital improvements. The period of time to borrow the remaining $400,000 for capital improvements expired on January 31, 2001 with no additional amounts being drawn. The loan accrues interest at 9.34% and requires monthly principal and interest payments of $23,000. The loan is due on July 1, 2004. Interest paid on these notes for the three months ended March 31, 2001 and 2000 was $48,000 and $49,000, respectively. Based on the market rate of the mortgage note, the fair value at March 31, 2001 is deemed to be the carrying value. -12- TOWER PARK MARINA INVESTORS, L.P. a California Limited Partnership NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2001 (Unaudited) 6. Related Party Transactions -------------------------- The Partnership has an agreement with Westrec Marina Management, Inc., an affiliate of Westrec, to manage the day-to-day operations of the marina for a fee equal to 6% of the marina's monthly gross revenues (as defined). Management fees for the three months ended March 31, 2001 and 2000 were $25,000 for both periods. In connection with funding the Partnership's operating deficits funds have been borrowed from Westrec. These borrowings accrue interest at the prime rate plus 1% (9.0% at March 31, 2001). Total interest paid or accrued to Westrec for the three months ended March 31, 2001 and 2000 was $89,000 and $72,000, respectively. 7. Commitments and Contingencies ----------------------------- The operations at Tower Park Marina are influenced by factors that affect the boating industry both locally and nationally, with activity at Tower Park Marina increasing seasonally during the period April through October of each year. In November 1991, contamination was discovered in the area surrounding a fuel storage tank at Tower Park Marina. Currently, the Partnership is required to perform quarterly groundwater sampling and monitoring. Environmental consultants have been engaged to perform this sampling to determine the extent of the contamination. Presently, sufficient data has not been obtained to estimate the cost of remediation, consequently no loss accrual has been made in the financial statements. To date the Partnership has incurred $92,000 in monitoring fees. Included in cost of operations for the three months ended March 31, 2001 is $7,000 of monitoring fees. No costs were incurred for the three months ended March 31, 2000. The Partnership operates a portion of Tower Park Marina on approximately 14 acres of waterfront property under a lease with the California State Land Commission (the "CSLC Lease"). Effective January 1, 1999 the CSLC Lease was extended until December 31, 2023. The CSLC Lease provides for an annual rent based on gross receipts, with a minimum annual rent of $40,000, payable in advance in quarterly installments of $10,000. Rent expense associated with the CSLC Lease is included in cost of operations and was $10,000, for each of the three months ended March 31, 2001 and 2000. -13- TOWER PARK MARINA INVESTORS, L.P. a California Limited Partnership NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2001 (Unaudited) 7. Commitments and Contingencies (continued) ---------------------------------------- Future minimum lease payments under this lease are as follows: Year ---- 2001 $ 30,000 2002 40,000 2003 40,000 2004 40,000 2005 40,000 Thereafter 724,000 --------- $ 914,000 ========= The Partnership's ability to continue to operate through 2001 and beyond is contingent on, among other factors, the improvement in Tower Park Marina operations and continued advances from the General Partners. Management's plans include the expenditure of approximately $200,000 in additional repairs and capital improvements during 2001, which management believes will continue to improve the operations of the property. In addition, the restaurant has been leased effective May 1, 2001 to an independent operator. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Partnership to continue as a going concern. 8. Prior Period Adjustment ----------------------- The Partnership has a 51% ownership interest in Little Potato Slough Mutual Water Company ("LPSMWC"). LPSMWC supplies and distributes water to its shareholders and operates a sewer system and drainage canals for use by its shareholders. The 51% interest was accounted for as an investment under the equity method in prior years and not consolidated. As a result of the error, the statement of operations for the three months ended March 31, 2000 have been restated to consolidate LPSMWC and to adjust Partners' Equity. -14- TOWER PARK MARINA INVESTORS, L.P. a California Limited Partnership NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2001 (Unaudited) 8. Prior Period Adjustment (continued) ----------------------------------
As Previously Reported Adjustment As Restated ------------- ---------- ----------- For the three months ended March 31, 2000: Net loss (182,000) - (182,000) ========= ============ ======== Limited Partners' net loss per unit: Net loss (39.93) - (39.93) ========== ============ =========
9. Segment Reporting ----------------- The Partnership has been aggregated into four reportable business segments, (Slip rentals, RV parking, Retail sales, and Fuel services): Slip rentals comprise the wet boat slip rentals and dry boat storage operations at the marina. RV parking represents both long term and transient recreational vehicle ("RV") parking at the campgrounds adjacent to the marina. Retail sales segment consists of the operations of the retail boat supply and sundries store at the marina. The Fuel service segment reports the operations of the fuel dock at the marina. The accounting policies of the reportable segments are the same as those described in summary of significant accounting policies. The Company evaluates the performance of its operating segments based on income from operations before depreciation and amortization. Summarized financial information concerning the Company's reportable segments is shown in the following table. The "other" line item includes results of insignificant operations and as it relates to segment profit (loss), income and expenses not allocated to reportable segments. -15- TOWER PARK MARINA INVESTORS, L.P. a California Limited Partnership NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2001 (Unaudited)
9. Segment Reporting (continued) ---------------------------- For the three month periods ended Segment Information (in 000's) Mar 31, Mar 31, 2001 2000 ------------ ----------- Revenues -------- Slip Rental 168 161 RV Parking 163 133 Retail Sales 49 38 Fuel Service 27 22 Other 102 97 ---- ---- Total Consolidated Revenues 509 451 ---- ---- Depreciation ------------ Slip Rental 12 4 RV Parking 4 4 Retail Sales - - Fuel Service - - Unallocated amount (2) 41 38 ---- ---- Total Consolidated Depreciation 57 46 ---- ---- Profit (Loss) ------------ Slip Rental 142 144 RV Parking 130 111 Retail Sales (2) 1 Fuel Service (3) (2) Other (1) (464) (419) ---- ---- Total Income Before Discontinued Operations (197) (165) ---- ----
Assets Mar 31, Dec 31, 2001 2000 ------- ------- Slip Rental 180 263 RV Parking 176 265 Retail Sales 88 96 Fuel Service 10 22 Unallocated amount (2) 3,090 2,903 ----- ----- Total Consolidated Assets 3,544 3,549 ----- -----
(1) These items are not provided to management on a segment basis and are not used by management to measure segment profit or loss. These include general and administrative expenses. (2) Information about assets is not included in the measure of segment profit or loss that is reviewed by management. However, certain information is provided to management and is thus provided here. -16- TOWER PARK MARINA INVESTORS, L.P. a California Limited Partnership NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2001 (Unaudited) 10. Discontinued Operations ----------------------- The Partnership discontinued the restaurant operations and boat service effective January 1, 2001. The Partnership still owns the assets of the restaurant operations and boat service. Concessionaires are now operating the restaurant and boat service under operating leases, including the assets of the restaurant operations and boat service.
Three Month Periods Ended March 31 ------------------------------------------------- 2001 2000 --------------------- ----------------------- Restaurant Revenue $ 3,000 $ 78,000 Expenses 7,000 95,000 --------------------- ----------------------- Loss $ ( 4,000) $ ( 17,000) --------------------- ----------------------- Boat service Revenue $ 15,000 $ - Expenses 27,000 - --------------------- ----------------------- Loss $ (12,000) $ - --------------------- ----------------------- Discontinued operations Revenue $ 18,000 $ 78,000 Expenses 34,000 95,000 --------------------- ----------------------- Loss $ (16,000) $ ( 17,000) ===================== =======================
-17- TOWER PARK MARINA INVESTORS, L.P. a California Limited Partnership MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION March 31, 2001 (Unaudited) The revenues and expenses of the Partnership for the three months ended March 31, 2001 are generated from the operations of Tower Park Marina in the Sacramento - San Joaquin Delta near Sacramento, California and its majority owned subsidiary, Little Potato Slough Mutual Water Company. As of March 31, 2001, Tower Park Marina had the following occupancies: Spaces % Available Occupied ------------------------ Wet slips 239 (1) 79.1% Dry storage 149 70.47% RV Park 136 (1) 83.1% (1) non-transient spaces only For the three months ended March 31, 2001, revenues for Tower Park Marina increased $58,000 to $509,000. This was due to a $30,000 increase in RV parking and a $7,000 increase in slip rentals. The Partnership's net loss of $213,000 for the three months ended March 31, 2001 is $31,000 more than the loss incurred in the same period a year ago. The decline is primarily attributable to increased maintenance costs, and to a lesser extent the operating loss incurred in running the boat service business. Liquidity and capital resources ------------------------------- Included in the Partnership's net loss of $213,000 is $57,000 of depreciation and amortization. Excluding these non-cash items, the Partnership incurred a cash flow deficit of $156,000. This deficit was covered by additional advances from the General Partner and by the deferral of interest and management fee payments due to the General Partner and/or its affiliates. The Partnership's ability to continue to operate through 2001 and beyond is contingent on among other factors, the improvement in Tower Park Marina operations and continued advances from the General Partners. Management's plans include the expenditure of approximately $200,000 in additional repairs and capital improvements during 2001, which management believes will continue to improve the operating results of the property. -18- TOWER PARK MARINA INVESTORS, L.P. a California Limited Partnership PART II. OTHER INFORMATION March 31, 2001 (Unaudited) ITEMS 1 through 6 are inapplicable. 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. DATED: December 12, 2001 TOWER PARK MARINA INVESTORS, L.P. a California Limited Partnership BY: Westrec Investors, Inc. General Partner BY: /s/Jeffrey K. Ellis ------------------- Jeffrey K. Ellis Vice President -19- -----END PRIVACY-ENHANCED MESSAGE-----